Europe: cross-border ecommerce suffers from delivery-related high costs

Monday 7 July 2014 14:17 CET | News

By comparing delivery costs within and out of borders, the latter requires, the least, twice the amount for shipping goods.

Hence, it is a major logistical issue in the cross-border business in Europe which should be given prime importance and be solved in order to create a digital single market. It could also be a major driver for merchants to start selling to foreign markets.

Improving delivery conditions within the EU has also been identified by the European Commission as one of the top five priorities to boost ecommerce before 2015. Therefore, Ecommerce Europe, the branch and lobby organization representing European e-tailers, has released a position paper on the need for integrated European solutions for logistics of online retailers.

Ecommerce Europe believes that the accessibility to relevant logistic related information is important for merchants seeking to make a choice for partnership abroad. The organization proposed the creation of a comprehensive information website, a so-called ‘one-stop-shop’ that bundles all relevant information on the European logistics market, comprising e.g. a list of all logistics service providers.

It is also relevant that cross- border delivery costs are decreased, as they form a competitive disadvantage for foreign retailers over the local ecommerce players. One of the factors that make cross- border delivery expensive is the fact that merchants often have to ship random, scattered packages to isolated destinations. One suggestion to improve cost efficiency could thus be to create export lanes and allow merchants to bundle their ecommerce exports to foreign destinations.

Claim handling can be inconvenient when it comes to shopping from a foreign webshop, and in this process there is much to be improved. Ecommerce Europe suggests the introduction of a delivery- related trust mark in order to bind operators to certain standards and procedures, which could significantly increase clients’ trust.

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Keywords: Europe, cross-border, ecommerce, logistics, delivery, costs, digital market, online payments, single market
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce