European Union consumers are facing widespread problems with
refusals of orders when trying to make online purchases in other
Member states, says a new European Commission report on cross
border consumer e-commerce published today.
An extensive independent mystery shopping exercise was conducted
on behalf of the Commission, with shoppers from across the EU
endeavouring to purchase a list of 100 popular products - including
cameras, CDs, books and clothes - from a cross border provider.
In excess of 11,000 test orders were carried out, and the
research discovered that 60% of cross border transactions could not
be completed by consumers either because the trader did not ship
the product to their country, or it did not offer adequate means
for cross border payment.
Consumers in Latvia, Belgium, Romania and Bulgaria are able to
buy cross border (for a full list of EU-27 countries ranked see
MEMO/09/475), but in most countries the odds of succeeding in
completing a cross border purchase are less than 50%.
And the foregone benefits to consumers are also highlighted by
the study. In more than half of Member States, 50% or more of the
products could be found 10% cheaper (including transport costs)
from a website in another country. Furthermore, 50% of products
searched could not be found on national sites and were only offered
by another Member state trader.
The report presents a series of measures which, if implemented,
would reduce the complex regulatory environment which is currently
acting as a disincentive for businesses to serve consumers in other
Member States.
Additionally, a stakeholders forum will be held to analyse the
problems associated with the collection of commercial data and its
use to profile and target consumers, with a view to simplifying
regulations and boosting confidence in online trading.
Commissioner Kuneva said: "The results of this research are very
striking, we now have concrete facts and figures showing the extent
to which the European single market for consumers is just not
happening in online retail. Better deals and greater product choice
for consumers on our vast European market could be just a click of
a mouse away. But in reality online shoppers are still largely
confined within national borders. Europe's consumers are being
denied better choice and value for money. They deserve better. We
must simplify the legal maze that is preventing online traders from
offering their goods in other countries."
Viviane Reding, EU Commissioner for Information Society and
Media, said: "Achieving a Digital Single Market is a top priority
for Europe. We won't have a real Digital Economy until we remove
all barriers to online transactions, also for end-consumers. This
must be on top of the list of all policy initiatives to re-launch
the single market project."
The European Commission report says of the e-commerce
market:
Estimated to be worth 106 billion euros in 2006, the internet is
the fastest growing retail channel. In 2008, 51% of EU retailers
sold online.
But the gap between domestic and cross-border e-commerce is
widening as a result of barriers to online trade. While the share
of EU consumers who shop online grew from 27% to 33% in two years
(2006-08), the share of those who bought anything online from
another EU country was stagnant (6% to 7%). And only 21% of traders
currently sell at a distance across borders.
Yet the potential is clearly there. One third of EU consumers
say that they would consider shopping online from another EU
country if the product was cheaper or better, and a third are
willing to buy in another language. 59% of retailers are prepared
to trade in more than one language.
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