Europe B2C Ecommerce Report 2013

CROSS-BORDER E-COMMERCE IN EUROPE EUROPE B2C E-COMMERCE 41
Cross Border
Cross-Border
Opportunities
More Choice
Better Prices
Market Opportunities
Europe: A Market
of 800+ Consumers
Barriers and opportunities
The growth of e-commerce has made it much easier for
even smaller brands and retailers to trade outside their
domestic markets. However, while the infrastructure might
be there to support this, it can still take considerable invest-
ments of time and money to understand the intricacies of
doing business in different markets. Trading across borders
in other markets – even those that are close by – remains
a challenge for many smaller and medium-sized online
retailers, mostly due to cultural and perception issues.
Consumer behaviour has changed rapidly under the
influence of the further penetration of Internet and online
commerce. Today’s consumer is well-educated, uses the
Internet as an instrument to be informed and the Internet
gives him a unique opportunity to compare prices, review
offers and stores and to share his experiences with other
consumers. He or she has more control than ever before.
Contrary to popular opinion, Europe is still not a
homogenous market despite the 28-nation European
Union. Laws and regulations still differ in each market.
Languages are different, as are sensibilities and customs.
For instance, relatively few online shops sell across
the borders between Germany and France, despite their
close proximity to one another.
The reason for this is not merely a matter of language, but
that, for example, promotional campaigns designed
to influence German consumers will have little or no effect
on potential French consumers.
The Dutch do not expect to be addressed quite as formally
in promotional offers as the Germans do. Checks play a
small role in the German market, but they are still the most
popular method of payment in France. Italians pay a lot of
attention to personal contact. Another important barrier for
the development of pan-European e-commerce is the lack
of consumer confidence in buying from different countries.
Consumers are often unaware about procedures for
purchasing goods abroad and prefer to buy within their own
country, as they believe it is safer.
Language remains the number-one barrier. In the EU28, for
instance, there are 24 different languages and it is essential
to address consumers in their own language (with minor
exceptions). In the early days of the Internet, English was
the dominant language, both for the contents of websites
and for language of communication. At present, with the
growing use of the Internet, people are increasingly using
their own mother tongue when communicating on websites
or using social media.
In addition to the above-mentioned differences which are
of a more cultural nature, issues such as complex VAT
requirements, delivery and payment regulations make it
far from easy for traders to do business throughout the
European Union (EU), especially smaller and medium-sized
retailers.
The European Commission is aware of this, and has
unveiled The Digital Agenda in 2010, with Neelie Kroes
appointed as special Commissioner.
Cross Border
Barriers Perceived
Languages
Consumer Attitude
Legislation
Payment Options
Delivery Issues
Less Trust in Foreign
Sites