A lack of consumer confidence and cultural differences among
European countries are hampering cross-border sales, concludes a
new report from ecommerce services provider Fact-Finder.
The report identified that ecommerce in Europe is dominated by
three countries, where more than 70 percent of all online sales
are made-the UK generates €48 billion (£40.6 billion,
$63.4 billon), Germany €39.2 billion (£33.2 billion,
$57.8 billion), and France €25 billion (£21.2 billion,
$33.0 billion).
Complex VAT requirements for merchants selling into other
markets, coupled with the lack of consumer knowledge of the
procedure for buying goods abroad, can make it difficult for
smaller retailers to sell across the European Union. Fact-Finder
conducted an internal study of its 800 retail clients across
Europe and found that only 11 percent were selling cross-border.
What’s more, the multicultural nature of Europe means that even
for countries as close geographically as France and Germany,
promotional activity does not transfer well between nations, with
the report stating that campaigns designed to influence German
consumers fail to have the same impact on French consumers.
Despite this, Fact-Finder predicts a positive outlook for 2011,
with more online sellers investing in making cross-border
transactions easier for the consumer. The UK, for example, is
predicted to do more to make the user experience more enjoyable,
while in France, there will be a greater focus on international
expansion. Spain, whose economy has been in decline, will
experience one of the highest ecommerce growth rates in Europe
next year with more Spanish retailers heading online.
In the less-mature markets, Fact-Finder spotlights Poland as one
to watch. Ecommerce may have only generated €3.4 billion
(£2.9 billion, $4.5 billion) in 2010, but it represented a
36 percent rise against the same period in 2009 as retailers
recognise the opportunities of online trading and improve the
usability of their websites.
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