150 million EU citizens shop online today, but only 30 million currently shop across borders due to complexities of the existing legal framework, and issues surrounding hidden charges, refunds, taxation and deliveries. However, the European parliament wants to boost cross-border shopping by simplifying online trade between member states through the introduction of its Consumer Rights Directive <http://ec.europa.eu/consumers/rights/cons_acquis_en.htm [1]> - cutting costs and red tape for internet retailers, while giving consumers more choice, greater certainty and bolstering their rights in relation to refunds, cooling-off periods and guarantees
- The UK has the cheapest online prices in Europe, with a basket of goods costing -34% less than the Index average, followed by Germany (-17.5%), Italy (-17.3%) and Sweden (-16.4%)
- Denmark has the highest online prices overall with goods 83.2% more expensive than the average, followed by Norway (47.0%) and the Netherlands (8.7%)
- 40% of British online shoppers already make purchases on overseas websites and the UK currently accounts for 33% of all cross-border internet spend in Europe
- Two thirds of UK cross-border online shoppers favour US web retailers (65%) - not surprising given that prices across the Atlantic are -35.4% cheaper than the index average, with a Playstation 3 costing £143.40 in the USA, compared to £220 in the UK
The report exposes the significant price variations that exist today between major e-tail markets and reveals that the UK is the cheapest country in Europe for internet shopping, with the price of a representative basket of goods costing -34% less than the Index average, while Denmark is the most expensive with prices 83.2% above the average. The study also draws comparisons with the USA market and concludes that online prices stateside continue to be significantly more competitive, with the same basket of goods costing -35.4% less than the average for all the countries featured in the Index.