Online shopping in the EU increasing rapidly
Competition in the local retail sector is expected to increase substantially in the coming years, not only through the opening of more high-street shops but through a new shopping tool which is resulting to be increasingly popular among Maltese...
Competition in the local retail sector is expected to increase substantially in the coming years, not only through the opening of more high-street shops but through a new shopping tool which is resulting to be increasingly popular among Maltese consumers - the internet.
According to a recent report issued by the European Commission in Brussels on e-commerce trends in the EU, 22 per cent of Maltese internet users last year made at least one purchase through the internet. More worrying for local retailers is the fact that only three per cent of these online purchases were made from local suppliers while the rest were purchases of products and services from abroad, particularly from other EU member states.
One of the most important aspects being considered by Maltese online shoppers when deciding to buy online from abroad is the fact that prices are cheaper than in Malta. On the other hand, some Maltese consumers complained that some foreign companies refused to deliver to Malta and have directed them to their local agents where prices for the same products were substantially higher than those advertised on the net.
According to the Commission, online shopping is becoming increasingly popular all over the EU.
Between 2006 and 2008 the proportion of EU consumers buying at least one item over the internet increased from 27 per cent to 33 per cent. These average figures mask the huge popularity of online shopping in countries like the UK, France and Germany where more than 50 per cent of internet users have made online purchases in the last year. In the Nordic countries (Denmark, Sweden, Norway, Finland and Iceland) the proportion of internet users who bought products and services online was 91 per cent in 2008. Countries like Italy and Spain are also fast growing markets.
Against this pattern of fast growing national markets, the extent of online purchasing cross border remains small on an EU level, at only seven per cent in 2008 (compared to six per cent in 2006). However, this trend is reversed in the smaller member states, such as Malta, Estonia and Luxembourg were the majority of purchases are made from cross-border online services.
The report shows that consumers are generally satisfied with online shopping particularly for frequently bought groups of products such as IT products as well as entertainment and leisure goods were consumer satisfaction with internet shopping is on average higher than for retailing in general.
Consumes are particularly satisfied when it comes to comparing prices, the wider range of offers, the affordability of products and the choice of suppliers. On the other hand, consumers are less enthusiastic about issues such as clear product information, advertising, and the protection of privacy, issues of trust and the possibility of returning goods.
According to the Commission, there is evidently a strong potential for cross border trade in online commerce as a third of EU citizens said that they would consider buying a product or a service from another member state via the internet because it is cheaper or better.
According to a recent report issued by the European Commission in Brussels on e-commerce trends in the EU, 22 per cent of Maltese internet users last year made at least one purchase through the internet. More worrying for local retailers is the fact that only three per cent of these online purchases were made from local suppliers while the rest were purchases of products and services from abroad, particularly from other EU member states.
One of the most important aspects being considered by Maltese online shoppers when deciding to buy online from abroad is the fact that prices are cheaper than in Malta. On the other hand, some Maltese consumers complained that some foreign companies refused to deliver to Malta and have directed them to their local agents where prices for the same products were substantially higher than those advertised on the net.
According to the Commission, online shopping is becoming increasingly popular all over the EU.
Between 2006 and 2008 the proportion of EU consumers buying at least one item over the internet increased from 27 per cent to 33 per cent. These average figures mask the huge popularity of online shopping in countries like the UK, France and Germany where more than 50 per cent of internet users have made online purchases in the last year. In the Nordic countries (Denmark, Sweden, Norway, Finland and Iceland) the proportion of internet users who bought products and services online was 91 per cent in 2008. Countries like Italy and Spain are also fast growing markets.
Against this pattern of fast growing national markets, the extent of online purchasing cross border remains small on an EU level, at only seven per cent in 2008 (compared to six per cent in 2006). However, this trend is reversed in the smaller member states, such as Malta, Estonia and Luxembourg were the majority of purchases are made from cross-border online services.
The report shows that consumers are generally satisfied with online shopping particularly for frequently bought groups of products such as IT products as well as entertainment and leisure goods were consumer satisfaction with internet shopping is on average higher than for retailing in general.
Consumes are particularly satisfied when it comes to comparing prices, the wider range of offers, the affordability of products and the choice of suppliers. On the other hand, consumers are less enthusiastic about issues such as clear product information, advertising, and the protection of privacy, issues of trust and the possibility of returning goods.
According to the Commission, there is evidently a strong potential for cross border trade in online commerce as a third of EU citizens said that they would consider buying a product or a service from another member state via the internet because it is cheaper or better.