Why are there more domestic than cross-border e-commerce transactions?

It is true that the average EU e-shopper spends 939 euros per year on domestic e-commerce but 693 euros per year on cross-border ecommerce.

But bear in mind that the difference between domestic and cross-border e-commerce is not always clear:

  • Domestic website and domestic delivery: Both website and warehouse are located in the same country
  • Domestic website but cross-border delivery: The warehouse is located in another country
  • Foreign website but domestic delivery: The warehouse is located in the shopper’s country
  • Foreign website and cross-border delivery: Both website and warehouse are located in another country

Furthermore, e-commerce trade patterns follow to a large extent geographical and linguistic affinities. Countries that share a language or close ties with another EU country have higher levels of cross-border (intra-EU) e-commerce. For example, Belgian consumers shop mostly from France followed by the Netherlands while Czech consumers buy mostly from Germany followed by Poland.

In view of the above criteria, cross-border intra-EU e-commerce is in fact vibrant and growing.