An independent mystery shopping exercise has been carried out for the Commission where online shoppers across the EU tried to buy nearly 100 popular products from a provider based in another country. According to research, the fact that the trader did not ship the product to their country and the lack of adequate means for cross border payment were the main reasons why consumers could not complete cross border transactions.
Shoppers in Latvia, Belgium, Romania and Bulgaria experienced the highest failure rates, which indicate that consumers based in these countries are least able to make cross border purchases. In 13 countries out of 27, consumers could find a certain product in another EU country which was at least 10% cheaper than the best domestic offer (transport costs included).
Despite the fact that in 2008, more than half (51 percent) of EU retailers sold their products and services online, barriers to online commerce lead to a wider gap between domestic and cross-border trade. Thus, the share of cross-border sales remained constant at 6%-7%, in spite of overall online sales growing from 27% to 33% within two years (2006-2008).
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. Europes 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, according to Commissioner Meglena Kuneva.
According to the report, the cross-border potential of e-commerce in Europe is evident, as one third of EU consumers have expressed their interest in shopping online from another EU country if they could find cheaper and better products, while another third are willing to make purchases in another language.
Editors notes: Barriers to cross-border commerce seem to reside in the lack of shipping possibilities or the non-availability of a certain payment method as well as restrictions that keep trade within national borders rather than in language-related issues. If these problems are overcome, European shoppers would gain access to products unavailable at home and perhaps make substantial savings.
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