EC Scoreboard shows consumer conditions are recovering but cross-border e-commerce remains backward

The spring Consumer Scoreboard published by the European Commission shows a clear recovery in consumer conditions in nearly all EU countries after the steep decline in 2009. The annual index of consumer conditions is measured e.g. by consumer trust in authorities, NGOs and retailers and the effectiveness of handling disputes.

The Scoreboard also confirms a growing gap between domestic and cross-border e-commerce, despite a clear potential of cross-border purchases in terms of choice and savings. But the study suggests that consumers are much more confident in cross-border shopping once they have tried it. The European Commission adopted on February a proposal to link business registers across Europe will boost cross-border trade, but there are important obstacles to cross-border e-commerce on the supply side, with fewer retailers selling across national borders compared with 2009.

The Consumer Scoreboard provides evidence and alerts about how the single market is performing for EU consumers in terms of choice, prices and satisfaction. The spring edition ('Consumer Conditions Scoreboard') looks at the integration of the retail market and national conditions for consumers. The Scoreboard data are based on surveys of consumers and retailers as well as on statistical data such as income levels.

Progress in national consumer conditions while e-commerce gap still remains

The 2010 index reveals that consumer conditions have rebounded after the sharp fall in 2009, with most countries matching or exceeding 2008 levels. The top countries with the best conditions are the UK, Ireland, Luxembourg, Austria, Finland, the Netherlands, Italy, Denmark, Germany, Belgium and Sweden, all of which are also above the EU average

The Scoreboard shows continued growth of domestic e-commerce, with 36% of EU consumers having shopped online from national sellers in 2010 (34% in 2009). However, cross-border e-commerce continues to grow at a sluggish pace (9% in 2010, compared with 8% in 2009), despite clear benefits in terms of savings and choice as evidenced in earlier studies. Efforts need to be stepped up to meet the Digital Agenda target (20% by 2015)

However, consumers' concerns are much less widespread among consumers who have actually shopped cross-border (34%, 30% and 20% respectively), showing that 61% were equally confident in cross-border and domestic online shopping compared to only 33% of the general population.On the other hand, cross-border e-commerce appears to be at least as reliable as domestic e-commerce or even more, as only 16% of cross-border purchases were delayed against 18% for domestic purchases and the product did not arrive in 5% of cross-border cases facing 6% for domestic purchases.

The findings suggest a key role for more effective information about existing cross-border advice, enforcement and redress mechanisms. These include the Consumer Protection Co-operation (CPC) network, which brings together national enforcers, and the European Consumer Centres, which provide free help and advice to consumers shopping in the Single Market.

Major obstacles to cross-border e-commerce

The proportion of retailers selling to other EU countries fell to 22% in 2010 (25% in 2009), even though the rewards for cross-border commerce are significant: 56% estimate than more than 10% of their e-commerce sales come from other EU countries. The Commission is pursuing a strategy to end market fragmentation, including through the recent Single Market Act.