Further information on page 7

BriefingJuly 2016Statistical Spotlight

Cross-border online sales in the EU

EPRS | European Parliamentary Research ServiceAuthors: Eulalia Claros, Tambiama MadiegaMembers’ Research ServicePE 586.621

17

39

2.2

2.2

32

5.5

0.9

0.5

0.53.5

2.8

8.2

6.1

0.6

0.6

1.1

18

0.2 3.40.3

1.8

5.3

2.3

5.1

3.7

2.0

1452

Per capita spending More than €100Between €75 and €100Less than €75

Digital contents: cross-border Online servicesDigital contents: nationalO�ine goods & services: cross-borderO�ine goods & services: national

1. Value of cross-border online trade, 2014

Data source: European Commission, 2015

The estimated global val-ue of the European online trade is in excess of €230 bil-lion, with average per capita cross-border spending around €94 a year.

Online trade includes purchases of either tangible goods or offline services, use of online services or accessing digital content (like e-books, online music, video or news services, games and software applications).

Geo-blocking practices are commonly used to restrict cross-border sales of tangible goods e.g. (e.g. clothes, electronics) as well as of elec-tronically supplied services (e.g. cloud servic-es) and electronically delivered content (e.g. audiovisual services, e-books). In order to give customers better access to goods and services in the Single Market, the European Commis-sion has proposed a regulation to prevent geo-blocking and related practices which introduce discrimination – based on customers’ national-ity, place of residence or place of establishment – between traders and customers in cross-bor-der commercial transactions (See EPRS Legisla-tion in progress briefing).Against this background, this paper provides some statistical data on:• the value of cross-border online trade in the

EU,• the public’s interest in accessing online

content cross-border,• consumers’ behaviour towards online

shopping,• online retailers’ experience and concerns

with cross-border transactions,• audiovisual and online music services, and• development of e-learning activities.

Cross-border online sales in the EUEPRS

3. Online domestic and cross-border retailers

Further information on page 7Members’ Research Service Page 2 of 8

2. Measuring the public’s interest in online cross-border access

Of the around 9% of the youngest participants in the survey who had tried to access online audiovisual services from another EU country, only slightly more than half of them, 54%, had been successful. According to the Eurobarometer survey on cross border access to online content, the ex-pressed interest in accessing online services from another EU country varies significantly depending on age. 51% of respondents in the 15-24 year-old group have expressed inter-est in accessing online services from another EU country compared to 12% of the respond-ents older than 55 years old.

Data source: Eurobarometer 411, 2015

Years of Age

Survey respondents who tried to access online services from another EU country

51%

27% 23%

12%

Would like to access online services from another EU country

51%51%

27%27% 23%23%12%12%

3

2

1

4

6

9

Games

e-book

Music

Sport

Audiovisual

55+40-5425-3915-240

25

50

0

% have tried

% would like to use

Less than 5% Less than 25%

More than 20%

EU-28 12%

More than 50%

Retailers who sell online to final consumers in other EU countries

EU-28@37%

@@

19%

@21%

@21%

@24%

@25%

@26%

@27%

@29%

@27%

@29%

@27%

@30%

@31%

@31%

@31%

@32%

@32%

@34%

@34%

@35%

@35%

35%

@39%

@40%

42%

@47%

@50%

@53%

@

@

@

While the number of retailers who sell online varies across Member States, from less than one in five in Romania to one in two in France and Spain, the share of those who sell to customers in other EU countries is on aver-age 12%, with the highest rates in Greece (24%), Malta (22%) and Ireland (21%).

Data source: Eurobarometer 396, 2015

Cross-border online sales in the EUEPRS

4. Persons having made online purchases

Data source: Eurostat

5. Spending on digital content, 2014

Data source: European Commission Study, 2015UKDEDKNLSEFI

FREE

EU-28SKBEIE

CZATPLES

HUSI

LVLTPTELLUIT

HRBGMTROCY

0 10 20 30 40 50 60 70 80% of survey respondents

in own country

In other EU countries

2015 2008

AT €178

IT €150

CZ €151

PL €136

EE €61

LT €98

SK €132

FI €173

SE €180

DK €207

DE€173

IE €153

PT €151

LU€171

ES €157

UK €183

FR€166

NL €161

BE €156

EL €137

MT€169

BG €146HR

€118

SI €105

HU €94

RO €197

CY €155

LV €96

in own country

abroad, within the EU

abroad, outside the EU

Circles are proportional to the country’s per capita average spending on digital content.

EU average amount spent on online purchases

EU€163

Further information on page 7Members’ Research Service Page 3 of 8

In 2015 more than 70% of online shoppers in Germany and the United Kingdom were buying from national sellers and less than 20% were buying from other EU retailers. Luxembourg, Malta and Austria accounted for the highest percentage of online shoppers, with more than 40% buying from other EU retailers. The EU average was 47% for domestic and 16% for cross-border purchases.

The circles are proportional to the country’s average per capita spending on digital content, (including e-books, music, films and TV, games, streaming of live events and other video content and software applications). On average, EU respondents to the survey who made cross-border purchases of digital content spent €48 when buying in other EU countries and €79 when buying from sellers in their own country.

Further information on page 7

Cross-border online sales in the EUEPRS

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6. Problems experienced when buying from online retailers in another EU country

Data source: European Commission - Consumer conditions Scoreboard, 2015

7. Retailers’ concerns when selling online to customers in another EU country

The charts on this page show the main problems cited by online consumers and retailers when buying/selling cross-border from/into another EU country.

Customers highlighted issues of poor customer service, lower quality and longer delivery times. Furthermore, 5% of them reported being unable to complete the transaction because of automatic redirection to a national web-site or for the sale being refused because of their location.

While in France and Spain at least 50% of the retailers answering the survey sell online, less than 20% of them sell to consumers in other EU countries.

The gap between the percentage of retailers selling online only to domestic customers and across the EU is smaller in Luxembourg (25% and 15% respec-tively) and Croatia (29% and 17%).

Longer delivery times

Lower quality than announced

Poor customer service

Redirected to web site in own country

Item return and reimbursement not possible

Personal data was misused

Payment card details were stolen

Sale was refused because of country

Only partial access to contents of foreign website

Seller charged higher price than in their country

Higher risk of fraud and non-payments

Di�erences in national tax regulations Di�erences in national consumer

protection rulesHigher transport costs due to

geographical distance

Di�erences in national contract lawPotentially higher costs of resolving

complaints and disputesHigher costs of cross-border delivery

Extra costs from after-sales service Restrictions on cross-border sales imposed

by manufacturers or suppliersExtra costs arising from language di�erences

15%15%

27%27%

29%29%

32%32%

36%36%

39%39%

38%38%

41%41%

42%42%

43%43%

40%40%

13%13%

7%7%

6%6%

5%5%

14%14%14%

8%8%8%

6%6%6%

5%5%5%

4%4%4%

Longer delivery times

Lower quality than announced

Poor customer service

Redirected to web site in own country

Item return and reimbursement not possible

Personal data was misused

Payment card details were stolen

Sale was refused because of country

Only partial access to contents of foreign website

Seller charged higher price than in their country

Higher risk of fraud and non-payments

Di�erences in national tax regulations Di�erences in national consumer

protection rulesHigher transport costs due to

geographical distance

Di�erences in national contract lawPotentially higher costs of resolving

complaints and disputesHigher costs of cross-border delivery

Extra costs from after-sales service Restrictions on cross-border sales imposed

by manufacturers or suppliersExtra costs arising from language di�erences

15%15%

27%27%

29%29%

32%32%

36%36%

39%39%

38%38%

41%41%

42%42%

43%43%

40%40%

13%13%

7%7%

6%6%

5%5%

14%14%14%

8%8%8%

6%6%6%

5%5%5%

4%4%4%

Further information on page 7

Cross-border online sales in the EUEPRS

Members’ Research Service Page 5 of 8

Data source: European Audiovisual Observatory

0

2

4

6

8

10

12

20

30

40

50

60

70

80 € billion

2009 2010 2011 2012 2013

69.571.5

33.4

32.527.9

10.6

8.3

6.0

0.2 1.5

6.3

5.9

10.9

36.3

Cinema box o�ce

Public broadcasters

Consumer expenditure for audiovisual distribution

Broadcasters’ net revenues

Physical video

Online video on-demand

Games (o�ine and online)

8. The audiovisual market in the European Union

The digitisation of audiovisual content along with the widespread availability of broad-band and the changing consumption patterns of audiences have forced a paradigm shift in the sector, where only on-demand video services are growing while traditional services are in decline. The growth in revenue from audiovisual distribution services results from the growth in internet protocol television (IPTV) subscriptions.

Major online music services are available for downloading or streaming across the EU, according to nationally agreed legal provisions. Music services listed in the chart are those most frequently found across the EU.

emusic

DEUKFRATNLPLITESBEDKIEPTSECZFIELROHUSKBGLUEELTLVCYMTSIHR

DownloadMusic service available Subscription Advertising

9. Availability of major online music services across the EU

Data source: pro-music.org, 2016

Cross-border online sales in the EUEPRS

Members’ Research Service Page 6 of 8

Data source: Eurostat Data source: Open Education Europe

The chart above displays, for the two age groups mentioned, the percentage of respondents to the Household survey on Information and Communication Technologies who have used the internet to do an online course on any subject, or to access other online learning material or to communicate with instructors or students using education portals.

No specific measurement of the cross-border dimension in e-learning activities is available but their cross-border component is highlighted by the linguistic offer of the MOOCs recorded by the European Open Education Scoreboard: although around 25% are offered by institutions in the United Kingdom, more than 50% of the offer is in the English language. Inherent to the MOOCs model, the difficulties in recording course-completion rates and student authentication prevent sound estimation of participation figures.

0

10

20

30

40

50

60

70

80%

Individuals using internet for e-learning in 2015

Between 25 and 64 years of ageBetween 16 and 24 years of age

Women Women MenMen

EL CYCZ IE PL HRHU FR SK DKMTDE BG IT LU RO SI BE AT PT SE UK ES LV NL LT EE FI

EU-28

Science and technologySocial sciences

Applied sciences

HumanitiesBusiness

Natural sciences

Mathematics and statisticsArts

2015: 8542014: 611

2013: 184

Number of MOOCs in the EU by topic2013 - 2015

EN: 845

ES: 415

FR: 226

DE: 76IT: 45

10. Use of internet for e-learning activities, 2015 11. Massive open online courses (MOOCs) in the EU

Cross-border online sales in the EUEPRS

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Further information

The chart shows, detailed by age group, the percentage of respondents to the Eurobarometer survey who, a. have tried to access online services from another EU country (the overall rate of success, not shown in the chart, was around 54% )b. expressed interest in accessing online services from another EU country

The map shows, across the EU, the average amount spent per person on online transactions in the last year, as reported by respondents to the sur-veys carried out in 2015 for a Commission study. Only residents between 15 and 65 years of age have been taken into account in the per person calculation. The donuts show the spending distribution among national and cross-border acquisitions of online content and offline goods and ser-vices, with the figure indicating the country’s estimated online trade value in billion euros.

1. Value of cross-border online trade

2. Measuring the public’s interest in online cross-border access

4. Persons having made online purchases

5. Spending on digital content, 2014

The percentage of persons who bought online in 2015, according to the results of the Survey on the use of Information and Communication Tech-nologies by households and individuals is compared with the results for 2008. The chart displays whether the purchases were made from domestic or foreign retailers in other EU countries.

The circles on the map present the average per capita spending on digi-tal content bought online, according to the European Commission study identifying the main cross-border obstacles to the Digital Single Market. Digital content, for the purposes of the survey, includes e-books, music, films and TV, games, streaming of live events and other video content, and software applications.

6-7. Concerns relating to online cross-border transactions

3. Online retailers: domestic and cross-border

8. The audiovisual market in the European UnionThe chart shows the evolution of the value of the European audiovisual market, which is defined by the European Audiovisual Observatory as the sum of six segments: • broadcasters’ net revenues (public broadcasters and radios, advertising

TV, thematic channels, home shopping channels, local TV and private radios),

The charts on this page show the main problems cited by online consum-ers and retailers when buying/selling cross-border from/into another EU country. According to the Consumer Conditions Scoreboard that tracks consumer conditions both nationally and cross-border, consumers’ confi-dence in online purchases is strongly correlated with the actual experince of such purchases. Another Eurobarometer survey, carried out in Spring 2014, explored re-tailers’ attitudes towards cross-border trade and consumer protection. For less than one in three of those already selling online accross the EU the re-strictions imposed by manufacturers or the costs related to language dif-ferences are matter of concern, while almost one in two are worried about the higher risk of fraud and about the differences in national regulations.

The map shows the online retailers who do sell to cross-border customers within the EU as a percentage of all retailers participating in the survey. The share of retailers who sell online is indicated by the figures in orange, to highlight the gap between domestic and cross-border online trade.

Cross-border online sales in the EUEPRS

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Disclaimer and Copyright. The content of this document is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial pur-poses are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy. © European Union, 2016.

eprs@ep.europa.eu – http://www.eprs.ep.parl.union.eu (intranet) – http://www.europarl.europa.eu/thinktank (internet) – http://epthinktank.eu (blog)

Country code: Austria (AT), Belgium (BE), Bulgaria (BG), Cyprus (CY), Czech Republic (CZ), Denmark (DK), Estonia (EE), Finland (FI), France (FR), Germany (DE), Greece (GR), Croatia (HR), Hungary (HU), Ireland (IE), Italy (IT), Latvia (LV), Lithuania (LT), Luxembourg (LU), Malta (MT), Netherlands (NL), Poland (PL), Portugal (PT), Romania (RO), Slo-vakia (SK), Slovenia (SI), Spain (ES), Sweden (SE), United Kingdom (UK), European Union (EU-28).Extraction date: data have been extracted in April 2016.

Notes

9. Availability of major online music services across the EU

Data reporting on the use of internet for e-learning activities are collected by the national statistical institutes based on Eurostat’s model question-naire on ICT usage in households and by individuals, and refer to the first quarter of the reference year. E-learning includes use of the internet for an online course or any other learning material, and for communicating with instructors or students using education websites.

10. Use of internet for e-learning activities, 2015

11. Massive open online courses (MOOCs) in the EUThe chart presents the number of MOOCs organised by educational insti-tutions in the EU listed by the European Open Education Scoreboard for the period 2013-2015.

• consumer expenditure for audiovisual media distribution services (ca-ble, satellite, IPTV, DTT),

• cinema gross box office, • revenues of physical video (DVD retail and rental, Blu-ray disc retail and

rental), • Video-on-demand online revenue, and • revenue from of video games (offline and online, excluding mobile

games and applications).

According to the information provided, the table lists legal online music services available for download or streaming. Subscription services allow access to music for a monthly fee, download services allow the purchase of

a digital song or album and advertising-supported services allow users to listen to music for free.