When Brexit came into force, few supply chain professionals could have anticipated the full complexity it would introduce across logistics, customs, and trade compliance. The once seamless movement of goods between the UK and EU was suddenly undermined by layers of regulation, new customs requirements, and uncertainty. In the years since, fulfilment providers, brands, and technology platforms have had to rewire how cross-border trade works.
While the dust has largely settled, the logistics landscape today is very different from the one businesses operated in pre-2020, and it’s still evolving.
From firefighting to forward planning
In the early post-Brexit period, no one – not carriers, customs, nor fulfilment providers – had all the answers. Regulatory frameworks emerged in real time, holding up entire shipments due to a single missing data point or misclassified product code. The absence of a unified source of expertise meant that costly mistakes were common, and businesses had little choice but to learn through trial and error.
Thankfully, that reactive phase is now behind us. What emerged in its placef is a more resilient, tech led fulfilment ecosystem. The brands and logistics providers that weathered the post-Brexit storm are now operating with deeper in-house customs knowledge, better integration with digital platforms, and a clearer understanding of how to deliver consistent cross-border customer experiences.
Dual-entity warehousing as the new normal
One of the most significant structural changes has been the rise of dual-entity warehousing – where brands maintain inventory in both the UK and EU to minimise customs friction and delivery delays. This was inevitable for many, but Brexit made it a priority.
The Netherlands, in particular, has emerged as a hub for EU-side fulfilment, offering proximity to major ports and infrastructure, along with favourable tax and customs frameworks. For many 3PLs, acquiring existing fulfilment operations or warehousing space in the region has proven to be a fast track for expansion, but with that comes the need for cultural alignment, process integration, and – crucially – ownership of operations. Brands increasingly value direct control over their fulfilment touchpoints, rather than relying on third-party partner networks that can introduce communication gaps and dilute service quality.
Technology and customs automation no longer optional
Perhaps the most transformative development has been the rise of customs automation and API-driven compliance. Today, most major carriers have stabilised their DTC customs processes, and automated platforms are handling tasks that once required manual intervention. The shipping label now acts as a digital passport, embedding all required data – from product descriptions and values to origin details – directly into the logistics flow.
However, the picture is more complex for B2B shipments, where full-container loads and bulk freight still face significant scrutiny. One incorrect HS code or misdeclared value can delay or derail an entire shipment. As a result, many fulfilment providers have taken customs clearance in-house, supported by platforms that provide real-time validation and compliance checks.
Rebalancing demand across borders
There has also been a notable shift in client strategy. In the immediate wake of Brexit, many EU-based brands deprioritised the UK, choosing instead to focus on domestic or pan-EU growth. That’s now changing. Over the past 12 months, there’s been a renewed appetite for UK expansion – a recognition that revenue left on the table during the adjustment period is now worth pursuing again.
That said, the complexity of cross-border trade has forced hard choices. Some brands, particularly those with low basket value or lean technical capabilities, have exited certain markets altogether. The cost-to-serve has simply become too high for some use cases, especially where duties, delays, and customer dissatisfaction risk eroding already thin margins.
The policy reset and the road ahead
Recent political progress – particularly the SPS (Sanitary and Phytosanitary) agreement – could bring meaningful change. For sectors like food and agriculture, where spoilage at ports due to delayed certification has been a major issue, the new rules offer hope for reduced waste and smoother transit. While the benefits for DTC/B2C may be minimal (since that part of the supply chain has adapted well), larger B2B shipments should see improved reliability and shorter lead times. But the real gains will be in efficiency and predictability for larger freight movements.
Looking further ahead, AI will likely be the next major catalyst for transformation including everything from intelligent routing to regulatory compliance automation. Combined with a natural market consolidation (a correction after the COVID-fuelled boom in logistics start-ups), we expect fulfilment companies that prioritise innovation, automation, and client value to emerge stronger.
This is already happening. The UK fulfilment services market will likely more than double by 2030, growing from $7.54 billion in 2024 to $17.3 billion. EU markets will follow a similar upward trajectory. It’s a signal that this is not just a phase – ecommerce fulfilment is becoming more central to global trade strategy.
Fulfilment is no longer just a backend function; it’s a growth enabler. The UK-EU corridor may have been disrupted, but it’s also forced the sector to evolve to become smarter, faster, and more focused on the long term. Visit Fidelity Fulfilment to learn more.