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Presenting to

PECOS4SMEs cross-

border e-Commerce

State of Affairs

E-Commerce

Benefits

E-Commerce is ideal for cross-border sales because:

UBIQUITIOUS NATURE (24/7, 365);

GLOBAL REACH (across cultural/national boundaries);

UNIVERSAL STANDARDS (low market entry for merchants);

INFORMATION RICHNESS (more powerful selling environment);

INTERACTIVITY (can simulate f2f experience, but on a global scale);

INFORMATION DENSITY (amount & quality of information available);

PERSONALISATION/CUSTOMISATION & PARTICIPATIVE TOOLS.

Directive 2000/31/EC created the legal framework for e-Commerce in the

Internal Market by removing obstacles to cross-border online services in the

EU and providing legal certainty to business and citizens. In this

environment cross border e-Commerce is growing steadily, but not equally

across Europe.

Improving

e-Commerce Environment

Under the Europe 2020 strategy – launched on 3 March 2010 (IP/10/225) – the

Commission is tackling bottlenecks in the Single Market to drive economic

recovery. Example initiatives over the last few years comprise:

Improving

e-Commerce Environment

Mini1SS – Application of VAT on electronically supplied distant services

VoeS – VAT on e-Services

E-Invoicing

Alternative Dispute Resolution (ADR)

Internet Purchases by

Individuals

E-Sales Vs. Size

Significant variation in the share of enterprises conducting e-sales and the

turnover from the e-sales according to enterprise size.

40 % of large enterprises made e-sales corresponding to 19 % of turnover.

25 % of medium enterprises made e-sales corresponding to 11 % of turnover.

15 % of small enterprises engaged in e-sales, corresponding to only 5 % of turnover.

Cross border e-Commerce not fully

exploited by enterprises selling online

In the EU-28, while almost all enterprises making electronic sales (17%) reported reported that they sold to the markets in their own countries, only 7 % of enterprises made online sales to other EU countries.

While 30 % of enterprises in Denmark made online sales — ranked 1st EU EU countries — only 10 % of enterprises reported selling to other EU countries.

More enterprises in Luxembourg and Ireland reported selling to customers in other in other EU countries (15 %, 12 % respectively) than to their own country (14 %, (14 %, 7 % respectively).

E-Commerce

Barriers

Barriers related to cross border E-Com:

Lack of financial resources;

Current economic uncertainty;

Online fraud issues;

Distribution issues;

Costs associated to use of credit cards;

Lack of legal framework knowledge;

Lack of market intelligence info;

Inability to attract foreign consumers;

Vendors Vs. Consumer

Priorities

Vendors Priorities Consumers Priorities

• Professional look and feel • Trust seals

• Trust Seals • Variety of payment methods

• Newsletters • Good access to information about

products, services and prices

• Sales alerts • Website professional look and feel

• High ranking at search engine results • Price comparison services

• Variety of Payment methods • Clear and quick navigation

Critical Improvement

Areas

Most critical areas of improvement include:

Optimization of online stores website features;

Best practices, tools and techniques;

Market intelligence;

E-Safety;

Regulations in target countries;

Customer relationship management;

Delivery methods and costs;

THANK

YOU

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