Breaking the barriers to cross border e-commerce
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Presentation at the international conference “PECOS4SMEs – Cross-border e-Commerce for SMEs” by Mattheos Kakaris. This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
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Breaking the barriers to cross border e-commerce
- 1. www.ccseducation.com Presenting to PECOS4SMEs cross-border e-Commerce
- 3. 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.
- 4. Improving e-Commerce Environment 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.
- 5. 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: Mini1SS – Application of VAT on electronically supplied distant services VoeS – VAT on e-Services E-Invoicing Alternative Dispute Resolution (ADR)
- 6. Internet Purchases by Individuals
- 7. 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.
- 8. 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).
- 9. 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;
- 10. 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
- 11. 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;
- 12. THANK YOU Contact Us info@ccseducation.com
Hinweis der Redaktion
- E-Commerce barriers to SMEs Barriers related to cross border E-Commerce, were mostly related to the lack of financial resources for further business development and uncertainty about the current negative climate of the EU and global market. Regarding knowledge barriers that SMEs felt were limiting their efforts to expand their businesses abroad, were focused on the lack of knowledge on the subjects of market intelligence, computer online security, and general IT skills. E-Commerce related worries SMEs were seriously concerned about being victimised by online frauds / scams and also worried about goods/services distribution issues (including costs). Vendors demonstrated lack of trust in internet shopping (in particular unawareness of credit card payment costs) and also unawareness of regulations in foreign countries. Market related worries were linked to uncertainties on whether there is demand about offered products and whether there is trust between vendors and consumers (nationally and across borders).
- General Conclusions Τhe results of the twofold survey among consumers and businesses verified that both consumers and businesses have significant knowledge gaps regarding features and techniques that govern e-Commerce. Businesses are not able to fully meet the expectations of their customers and know little about the requirements of foreign consumers, fact that makes them reluctant towards the expansion of their businesses in the respective markets. As the aforementioned deviations were noticed, it is important to align the E-commerce practices SMEs currently implement with consumers’ expectations. It became clear that the most critical areas of improvement include: Optimization of online stores website features so as to attract shoppers. Information provision on best practices, tools and techniques that will enhance SMEs primarily in domestic E-Commerce (and consequently to cross border e-Commerce). Information provision on market intelligence in various countries in order to be established whether investing or expanding a business in a foreign country is sustainable or not. Information provision on the following areas: e-Safety. Regulations on foreign countries. Customer Relationship Management (CRM). Delivery methods and costs; shipping methods.