Maxwell-Scott said a combination of Covid-19 restrictions and delays caused by new trading regulations as part of the new UK-EU trade deal, meant that it is facing delays of several weeks getting hold of stock.
The Harrogate-based firm, which sells luxury bags and wallets, said more than 40 boxes of stock valued at £50,000 were currently held up in customs clearance.
Founder and CEO said: “We’re also expecting to pay out €20,000 worth of refunds for lost or missing parcels to Germany, with a further potential loss of £100,000 per month due to a lack of stock. Thankfully, we’re in a strong position to recuperate, but we know other SMEs haven’t been as lucky.”
He described the disruption caused by Brexit to their business as “truly unlike anything they’ve seen before in 22 years of trading”.
Based on their experience and extensive talks with courier companies, Maxwell-Scott is now advising fellow SMEs to managing customer expectations by offering goodwill gestures to apologise for delays.
“In order to support our customers, we’re focusing on making the purchasing process as easy as possible by offering a carefree package. This means paying duties and taxes on
behalf of European customers. This way there will be no surprising costs upon delivery.” said Marketing Director of Maxwell-Scott, Julia Munder.
“Our longstanding exporting experience to the US, Australia and the rest of the world helps too: we’re working really closely with our courier partners, and partners in Europe, to iron out any problems.”