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BizReport : Ecommerce : October 28, 2009
Cross-border online shopping in EU severely restricted
European online shoppers remain largely restricted to shopping within their own country's borders, according to the results of a new study commissioned by the European Union, stifling cross-border trade and consumer choice.
Around 60% of online orders placed across borders in Europe are rejected, according to the study, preventing Europe's online shoppers from benefiting from better deals and product choice. In the case of some computer and electronic equipment, that figure rose to around 80%.
In all but two countries, the chance of success in cross-border purchases is less than 50%, due in part to traders not shipping products to certain countries or providing inadequate payment methods.
"The Internet presents an enormous opportunity for consumers. Already 150 million EU citizens - a third of our population - shop over the Internet. But today, despite the opportunity granted by technology to trade across borders, online markets remain largely fragmented along national lines," said EU commissioner for Consumer Rights, Meglena Kuneva. "Only 7% of people shop online cross-border and, although 50% of European retailers are online, only 21% sell in other Member States."
The Commission's study, which is based on 11,000 tests, found that Austrian and Spanish retailers were the most receptive to cross-border orders, rejecting fewer than one in two.
So what's stopping European retailers from transacting across borders? It's not language, found the study, as 60% of online retailers said they are ready and willing to carry out transactions in other languages and a third of EU consumers are happy to buy from a website in a language other than their native tongue. Instead it is issues such as trust in another country's banking services, consumer rights and legal mazes.
"Achieving a Digital Single Market is a top priority for Europe," said Viviane Reding, EU Commissioner for Information Society and Media, adding "we won't have a real Digital Economy until we remove all barriers to online transactions, also for end-consumers."
Tags: cross-border, e-commerce, EU, Europe, European Commission, European Union, online shopping
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