E-commerce in the EU is strictly national

E-commerce seems to be the key to further opening the EU retail internal market, as 57 per cent of retailers say they now sell via the internet. But more than two-thirds of them sell exclusively domestically. And of the 29 per cent who do sell...

E-commerce seems to be the key to further opening the EU retail internal market, as 57 per cent of retailers say they now sell via the internet. But more than two-thirds of them sell exclusively domestically. And of the 29 per cent who do sell cross-border most do to only one or two other member states. More would like to sell cross-border (48 per cent of EU retailers are prepared to do so).

These are among the main findings of a Eurobarometer survey on business attitudes towards cross-border sales, released by the European Commission to coincide with a major consultation exercise on consumer rules.

Growing numbers of retailers now use distance selling methods, such as the internet (57 per cent) or mail order (27 per cent) to reach more customers. While new technologies and increasing broadband access have the potential to ease cross-border retail trade, consumers still lack confidence and companies are reluctant to offer their products across borders. This prevents them from fully benefiting from a wider market, increased choice, better prices and quality.

The survey revealed there are still significant barriers to an EU-wide business-to-consumer market. The biggest perceived obstacle to cross-border trade is the insecurity of transactions (61 per cent of respondents considered this an important obstacle). This is closely followed by concerns over different fiscal regulations (58 per cent), potential problems with resolving complaints (57 per cent), differences in national laws regulating consumer transactions (55 per cent), difficulties in ensuring after-sales service (55 per cent) and extra delivery costs (51 per cent). Language differences stand out as being less important (43 per cent).

The findings of this survey tie in with a 2006 Eurobarometer on consumer attitudes to cross-border shopping. The 2006 survey showed that while 27 per cent of citizens had bought a product or service online in the previous year, only six per cent made an online cross-border purchase.

The full Eurobarometer survey is available at http://ec.europa.eu/consumers/topics/facts_en.htm.

A survey by Ernst & Young commissioned by the Malta Communications Authority last year revealed that only 47.5 per cent of internet users said they engage in e-commerce. The vast majority of online shoppers, 75 per cent, said they only buy from foreign e-retailers. Only nine per cent said they only buy from Maltese online shops. The limited number of Maltese online retailers, more expensive items and going physically to local shops are the main reasons for this preference for foreign e-tailers.

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