EMOTA represents 3,500 multi-channel retailers in 15 European countries. The document discusses trends in European e-commerce, including barriers to cross-border sales for both consumers and retailers. It identifies opportunities to address issues such as inconsistent consumer laws, tax regulations, and payment costs through further harmonization across the EU to help unlock the potential of the digital single market. EMOTA is developing initiatives like a European trustmark and commitments to facilitate international e-commerce growth.

2. EMOTA represents 3,500 multi‐channel/online retailers in 15 countries
• 15 European countries
• 16 member associations
• 3,500 companies
• € 290 billion turnover
• 83% of European
e‐commerce
‐1‐

3. In 2013, European E‐Commerce will reach a turnover of €350 billion
E‐commerce turnover by region
€ Billion
350
298
300
249
250
215
200
185
+17%
350 Europe
338 Asia Pacific +30%
318 N. America +12%
284
250
Growth
259
209
193
150
167
122
100
50
84
15
20
2009
2010
33
45
56 ROW
‐
2011
2012
2013
Source: EMOTA, 2013
Note: B2C E‐commerce turnover includes online travel, digital downloads and event tickets; excludes online gaming and financial services
‐2‐
+26%

4. UK, France and Germany account for 60% of European E‐Commerce
European E‐commerce turnover by country 2013 (€ billion)
Other
Eastern Europe
Spain
18
12
Italy
Russia
17
UK
13
111
13
Benelux
Austria/
Switzerland
16
20
33
52
46
Scandinavia
France
Germany
Source: EMOTA, 2013
Note: B2C E‐commerce turnover includes online travel, digital downloads and event tickets; excludes online gaming and financial services
‐3‐

5. E‐Commerce is growing very fast throughout Europe
E‐commerce growth estimate by country in 2013
+30%
+30%
+20%
+17%
+15%
+24%
+23%
+25%
+16%
+15%
+14%
+14%
+13% +13%
+10%
+10%
+5%
+0%
Source: EMOTA, 2013
‐4‐
average
European
growth

6. E‐Commerce can potentially create 1.5 million jobs in Europe
European E‐Commerce employment estimate
million
3.8
+ 1.5 million jobs in 5 years
4,0
3.5
3.3
3.0
2.7
3,0
2.3
2,0
1,0
0,0
2013
2014
2015
2016
Source: EMOTA, 2013
‐5‐
2017
2018

7. Cross‐border online sales will grow twice as fast as domestic sales
€ Billion
600
535
491
446
500
350
578
116
99
Cross‐
border
+21%
83
402
400
CAGR ’13‐18
European E‐Commerce market forecast
69
56
44
300
200
306
346
377
407
436
462
100
0
2013
2014
2015
2016
Source: EMOTA, 2013
‐6‐
2017
2018
Domestic +9%

8. However, only 11% of consumers currently shop online across borders
Domestic vs. cross‐border internet purchases
35
30
25
20
GAP
Cross‐
border
Digital Agenda
target 2015
15
10
EU avg.
2012
5
‐
‐
10
20
30
40
Domestic
50
60
Source: Eurostat, 2013
Note: % of population who ordered goods or services over the Internet from national sellers / from sellers from other EU countries in the last 12 months
‐7‐
70

9. In fact, consumers are more worried about international delivery
Concerns about cross‐border vs. domestic online purchases
Long delivery times
Returns
Guarantee
No delivery
Payment security
Data privacy
Uncertainty on rights
0%
5%
10%
15%
% domestic
20%
25%
30%
% increase cross‐border
Source: Civic Consulting/TNS, 2011
Note: % of consumers reporting concerns about buying products online in their own country vs. in another EU country (sample: 29.010 individuals)
‐8‐
35%

10. In addition, only 25% of retailers sell across borders
Proportion of retailers selling in at least one other EU country
50%
40%
30%
25%
EU
average
20%
10%
0%
Source: TNS, Flash Eurobarometer 359, 2013
‐9‐

11. In fact, many retailers are deterred by legal/tax and payment issues
Barriers to cross‐border sales for retailers
Different consumer laws
Risk of fraud/non‐payments
Geographic distance
Different tax regulations
Delivery costs
Complaints resolution
Own restrictions
Customer service
Language differences
0%
10%
Source: TNS, Flash Eurobarometer 359, 2013
Note: % of retailers reporting obstacles to cross‐border sales to other EU countries
‐10‐
20%
30%
40%
50%

12. The cross‐border parcel distribution market is highly concentrated
€ Billion
European parcel market
60
CAGR
53.4
50
43.6
40
29%
47.2
Cross‐border market shares
Cross‐
31% border
Other
+6%
30%
30
20
71%
70%
69%
Domestic +4%
10
0
2009
2011
2014
Source: ATKearney 2012, European Commission 2013
‐11‐

13. Cross‐border distribution prices are twice as high as domestic ones
Domestic and cross‐border parcel distribution prices
30
25
20
Cross‐
border
€ 15
10
Domestic
5
‐
Source: FTI, 2011
Note: Domestic and weighted average cross‐border prices for 1 kg. parcels
‐12‐

14. Beside low prices, consumers want easy returns and track & trace
Relative importance of delivery offerings
Price of delivery
Basics
Ease of returns
Track & trace
Security of delivery
Value‐
added
services
Delivery windows
Delivery notifications
Express delivery
Same‐day delivery
Premium
services
Alternate delivery
Dynamic rerouting
0%
10%
20%
30%
Source: BCG, 2013
Note: survey of 1,500 consumers in late 2012 ‐ % of respondents – top 3 answers
‐13‐
40%
50%
60%
70%
80%

15. Operators need to provide advanced services to suit consumer needs
Easy returns
Track & trace
Fast delivery solutions
Fixed time windows
Click & collect
Parcel lockers
‐14‐

16. The European payments market is also highly concentrated
European payments market
Europe cards market shares
€ Billion
50
50
5% Internet/mobile
3% Cheques
45
37
40
35
30
25
33
6%
45% Credit/debit
10%
cards
40%
34%
20
15
10
55%
47%
53%
Bank
transfers
5
0
2005
2010
2015
Source: ATKearney 2013, Nilson Report 2013
‐15‐
Other

17. Cross‐border payment transaction costs are surging significantly
Evolution of payment processing unit costs
index
140%
140% Cross‐border
electronic
129% paper
120%
100%
100%
97%
95%
80%
85% SEPA electronic
71%
60%
59%
46% Domestic paper
39% Domestic electronic
40%
27% SEPA paper
20%
2006
2008
Source: ATKearney, 2013
Note: index: 2006 =100%
‐16‐
2010

18. Payment transaction costs vary widely by country
Comparison of payment transaction costs by country
1,4
1,2
1,0
0,8
Cost per
transaction
0,6
(€)
EU average
0,4
0,2
‐
100
Source: McKinsey, 2013
200
300
400
500
Payment costs per capita (€)
‐17‐
600
700

19. We favor harmonization of consumer legislation across the EU
Consumer Rights Directive
Standard withdrawal right:
• Withdrawal period: 14 days
• Reimbursement within further 14 days
Price transparency:
• No pre‐ticked boxes for extra services
• No payment / telephone surcharges
Information requirements:
• Order button with “obligation to pay”
• Delivery/payment restrictions indicated before order
‐18‐

20. However, we need to balance interests and avoid excessive burdens
Data Protection Regulation
Issues:
Benefits:
• Rules valid throughout Europe
• Explicit consent
• Elimination of notifications
• Third‐party access to data
• Single supervisory authority
for companies
• Information requirements /
data protection officers
• Constraints to profiling
• Right to be forgotten/
to data portability
‐19‐

21. Tax rates need to be standardized to create a level playing field
•
Harmonize VAT rate structure across EU:
– Same VAT rates for similar goods/services
– Same VAT rates for similar online / offline goods
– Same VAT exemptions
•
Accelerate implementation of one‐stop‐shop for VAT
•
Avoid tax arbitrage by non‐EU multinational companies
– Harmonize corporate income taxes
– Eliminate internal EU tax havens
– Apply taxes on revenues generated in each country
‐20‐

22. EMOTA is developing a European trustmark for cross‐border shopping
European harmonization of national trustmarks
• Harmonize codes of conduct
• Accredit national trustmarks
• Promote European trustmark
‐21‐

23. EMOTA commits to drive international e‐commerce growth in Europe
EMOTA Borderless Digital Commerce Commitment
Merchants
Consumers
• Govern and guide international
e‐commerce development
• Inform e‐commerce industry
with standard reporting
• Proactively listen and respond to
needs of key stakeholders
Providers
Governments
‐22‐