A new service is being launched to assist Irish small and medium businesses in dealing with post-Brexit red tape and logistical challenges when exporting to Britain.
UK Direct, which will be operated by An Post, will offer an end-to-end parcel delivery and returns postal service for SMEs, in partnership with Royal Mail.
It will include pre-cleared UK customs and a three-day e-commerce parcel delivery to the UK, as well as tracking and an integrated returns service.
An Post said the UK Direct service, which is being launched today, will offer businesses "a seamless route" to Britain's 69 million-strong consumer market to sell, ship and scale up.
It said it has designed the system to assist businesses in overcoming the trade barriers that have resulted from the UK’s departure from the European Union.
An Post said Irish SMEs continue to face "complexity, cost and considerable delays" when sending parcels to Britain due to the additional paperwork arising from Brexit.
"Between customs charges and the exacting compliance demands of Brexit, selling into Britain has become increasingly difficult for Irish small and medium-sized firms."
A 2024 survey, carried out by the Strategic Banking Corporation of Ireland, found that 34% of Irish SMEs had reduced or ceased selling to customers in Britain (26% reduced, 8% stopped) due to changes in trading patterns post-Brexit.
Chief Executive of An Post, David McRedmond, said the UK-Irish trade is "central" to Ireland’s economy.
He said the UK Direct facility "reopens that market for businesses facing the challenges posed by Brexit".
"Ireland’s 400,000+ SMEs are the backbone of this economy, and in building new infrastructure for Ireland, An Post is opening doors to new trade with the UK through a full end-to-end service."
Mr McRedmond said the new service "removes barriers to trade, providing Irish SMEs with access to over 69 million new customers".
"Instead of being tied up in the complexities of customs fees or other red tape, they can focus on huge growth opportunities and ensuring a top-quality retail experience for their new UK customers," he added.
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Chief executive of the Irish Exporters Association Simon McKeever said the announcement marks "a positive shift in how Ireland can do business with our nearest neighbour".
He said there is "a massive market ready and waiting for quality Irish products and it’s now within the grasp of Irish SMEs, thanks to this practical and highly innovative UK Direct service".
'A total gamechanger' - business owner
British Ambassador to Ireland Kara Owen said she is "delighted to see this new service come to life through such strong cooperation between An Post and Royal Mail".
She said businesses on both sides of the Irish Sea "want simple, dependable ways to reach their customers, and UK Direct delivers exactly that".
"By making everyday commerce easier, we are strengthening our €2 billion a week trading relationship, the economic ties that sustain the UK–Ireland relationship and support to communities and customers across both our countries," she said.
An Post said firms can register to integrate with the new UK Direct service, which it described as "a full turn-key solution including advance customs payments, three-day delivery with end-to-end tracking".
SMEs have welcomed the role out of the new UK Direct service.
The owner of Irish jewellery company Betty & Biddy has described the system as "a total gamechanger" for small and medium enterprises.
Fiona Fitzsimons said her business regularly gets enquiries from customers in the UK, but "right now, trying to navigate initial customs charges and reliable delivery in the UK, never mind customer returns, is a total nightmare".
The chief executive of Betty & Biddy, which is based in Churchtown in Dublin, described her company as a contemporary Irish jewellery brand selling online.
"We create and design high quality pieces at accessible prices for our customers, and we pride ourselves on a really fast and solid e-commerce service, with fast delivery."
However, Fiona Fitzsimons said since Brexit, there are "so many issues and complexities with the logistics of it".
"We have paused activity there a lot, because we didn't have the time, the resources or the expertise to manage any complexities that come with customs, so we kind of paused our activity there massively."
"There's 69 million people there, so if we can tap into a percentage of that it would be huge for us, be huge for scaling here and create an amazing growth opportunity for our brand as well," she added.
Ms Fitzsimons said she has found that customers in Britain have become "hesitant to order" because of issues around customs charges, delivery times and making returns.
She said the new An Post service, which SMEs can now register for, is "going to give us the confidence to grow our presence there a lot more".
"The fact that those kinds of issues, that we can't micromanage here, are taken away from us, we can just focus on what we do best, and that's providing high quality product, and they can take care of a really effective delivery service."
Ten years on from the Brexit referendum, Fiona Fitzsimons said it "feels like a lifetime ago, but the challenges still remain for us, massively".
'Incredibly welcome' - British Irish Chamber of Commerce
The Director General of the British Irish Chamber of Commerce has also welcomed the new parcel service.
Paul Lynam said anything that can be done to alleviate customs or regulatory challenges is "incredibly welcome".
"There was never going to be a perfect Brexit. You could have all the different trade agreements in the world but when they were outside the European Union, there was going to be new customs checks in place straight away, and that's had an impact."
"It's disproportionately impacted smaller businesses. 44% of them have been significantly impacted. Now it's a resilient market, so they have bounced back, and trade is growing," he added.
Mr Lynam said the post-Brexit trading environment has impacted some businesses.
"Some have had to stay more in the local market. The vast majority who continue trading, and the UK is still the leading export market for Irish SMEs, have had to invest additional money and that means additional costs for consumers on both sides of the Irish Sea."
He said the new service will assist businesses in terms of bureaucracy and cost.
"Both of those things are what businesses are looking for. Cash flow is the most important thing for any business. It's the sixth biggest economy in the world and it's on our doorstep. Trade is growing despite Brexit. It's resilient trade and SMEs are now getting an additional support here today."
UK Direct is being provided by An Post in partnership with Royal Mail.
Work is underway on establishing a similar system for products being sold from Britain into the Irish market, as part of the efforts to remove trade barriers.
