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Online sales double despite legal loopholes: EU study

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Published 31 August 2011, updated 23 December 2011

Online shopping has doubled in the richer northwestern areas of the EU even though consumers are left wondering how they can get their money back from a retailer in another country.

Though there are few laws on shopping online, the number of EU consumers buying on the Internet doubled to 40% in 2010 from 20% in 2005.

The spike in e-commerce, which was documented in a study published by the European Parliament, was mainly limited to wealthier countries in the north and west of the EU.

This division is also due to levels of Internet penetration. Web access among EU households has almost doubled over the past five years, reaching 70% in 2010, according to the latest Eurostat data. 

The Netherlands posted the highest access rate (at 91%) while in Bulgaria, only 33% of households are online.

Denmark, Sweden, the Netherlands, the UK, Germany and Luxembourg saw the biggest jumps in online shopping, while Bulgaria, Romania and Greece are still on the bottom rungs of e-commerce.

Online shopping is still very much geared towards the consumer's domestic market. Only 23% of Web purchases in 2010 were from a retailer in a different country to the shopper.

Interestingly, the study makes the case for changing the word 'consumer' to 'prosumer', as people increasingly buy online products and produce online content simultaneously. A good example of this is eBay, where users upload information about products they are selling.

Though this is good news for business, the rise of platforms such as eBay poses tricky legal questions as there are currently no laws on returning products for consumers-to-consumer sales.

E-commerce is still marred by legal uncertainty as consumers have no idea which legal code applies when they buy across borders. There is indeed no clear answer to this question and the laws of either jurisdiction could apply.

If a consumer is worried about a privacy breach, then the EU's Data Protection Directive has some say over how this should be redressed, but many countries are yet to fully implemented these rules.

There is also some indication that men are more avid online shoppers. In 2010, 46% of men aged 25-64 made at least one online purchase compared with 41% of women in the same age group.

That difference is more pronounced on mobile phones, as twice the amount of men make purchases from their phones than women.

COMMENTS

  • One issue not mentioned is that of price transparency. Taking the example of parquet and the Swedish manufacturer Kahrs. In the UK there are a number of on-line shops with prices clearly displayed. In 2010 when I was in the market to purchase around 100m2/1 tonne of Kahrs products there was a 2000 Euro price different (same product) between the UK (on-line shop) and Belgium (small retailer). Little on-line selling in Netherlands, Germany or France and apparent price opaqueness. The Belgian retailer obligingly reduced the price (following discussions with Kahrs HQ) by around E1500. In my view, on-line shopping will drive greater price transparency across Europe.

    On the issue of laws for consumer to consumer, there is a simple answer, do not buy if you are not certain the product is what you want. In the case of ebay, do not buy from sellers with a rating of less than 95%. I have bought on ebay extensively in several countries – with no problems. Doubtless the EC will find reasons for yet more legislation, however, my own experience suggests that on-line markets currently function adequately, have a measure of self regulation and need little if any action.

    By :
    Mike Parr
    - Posted on :
    31/08/2011
  • "Only 23% of Web purchases in 2010 were from a retailer in a different country to the shopper."

    ONLY?

    More than 100 mio. european consumers buy online. If they do that as "wildly" as the Danes (EU recordholder) - it will amount to more than 2,4 bn. purchases each year. And more than 500 mio. buys in another country.

    I see it as a major sign of confidence in e-retailers from the consumers as almost one out of four buys goes cross-borders. And I guess things work out well for the consumer as well as the e-tailer - despite the "loopholes".

    So the message to the Commission and the EU-Parliament is: Stop the new Consumers Rights Diretive and try to listen to the industry and the consumers about real life-problems before further legislative steps.

    Start to make it clearer how the memberstates should reinforce the current directive before issueing new rules. Please!

    By :
    Henrik Theil
    - Posted on :
    01/09/2011
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    29/09/2011
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    By :
    wlidtdmifam
    - Posted on :
    30/09/2011
  • Online shopping is still very much geared towards the consumer's domestic market. Only 23% of Web purchases in 2010 were from a retailer in a different country to the shopper.
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Background: 

Although e-commerce in Europe doubles every three years, sales remain primarily at national level due to low consumer trust in cross-border purchases.

The European Commission and the European Parliament are carrying out legislative reviews of the EU's e-Commerce Directive to address shortfalls (see EurActiv LinksDossier).

An EU survey in late 2009 on the consumption and sale of online goods across borders also concluded that Europeans are turned off by onlineshopping, mainly as a result of payment difficulties and a lack of trust in online consumption (EurActiv 23/10/09).

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