Europe's SME Retailers Fail To Take To Cross-Border E-Commerce

by Ulrika Lomas, for LawAndTax-News.com, Brussels

09 February 2007

According to a survey conducted by the European Commission, the results of which were published on Thursday, 57% of retailers say they now sell via the internet, but more than two thirds of them sell exclusively domestically.

Of the 29% who do sell cross-border, most deal with customers in only or two other Member States. However, of the EU retailers questioned, 48% said that they would like to sell cross-border.

The EC survey revealed that there are still significant barriers to an EU-wide business-to-consumer market, with perceived insecurity of transactions, differences in national fiscal regulations and consumer rules being the main concerns.

43% of retailers believed that their cross-border sales would increase if laws regulating consumer transactions were the same throughout the EU.

Consumer Commissioner, Meglena Kuneva observed that:

"Retail transactions account for 58% of EU GDP, yet the business-to-consumer market is still very much divided along national lines. The results of this Eurobarometer reinforce my view that SMEs are interested in entering the retail internal market but the lack of a clear and coherent set of rules is one of the main factors holding them back. This would not only drive prosperity for companies but also give consumers the confidence they need to make the most of the internal market. These figures demonstrate the urgency of the reform process started by the consultation the Commission has launched today. "

The survey was carried out among over 6,600 managers, from companies with at least 10 employees undertaking direct retail activity. 97% of the businesses concerned were SMEs.

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