UK first in Europe for e-commerce spending

It is no seceret that British people love to shop but recent research by e-commerce specialists FACT-Finder indicate that the U.K, Germany and France account for almost three-quarters of on-line sales in Europe.

As reported in a recent article on Internet Retailing, FACT-Finder has released figures that show the majority, 70%, of on-line sales originate from just three countries:

U.K: $64.1bn German: $52.4bn France: $33.4bn

These figures prove that, despite their geographical closeness, their cultural differences and diversities mean that Europe cannot be viewed as a single entity from an e-commerce point of view. This means cross-border trading can be a challenge and many retailers choose to focus on trading locally. Even ad campaigns don't translate, culturally or literally, across multiple countries because brands, and stores, differ from country to country. Think of perennial TV favorite Lynx, commonly known on the Continent as Axe.

While the infrastructure may be in place to support international e-commerce in Europe, it can still take a considerable investment in time and money to understand the intricacies of trading abroad. In many cases this leads to companies not taking advantage of these expanded markets and solely focussing on local trade.

Ofcom research indicates that British Internet users made more than double the number of on-line purchases in the past six months than Internet users in any other European country, except Poland (19 and 14 on-line purchases respectively). The next country was Germany with nine purchases.

In addition, the total value of online purchases Internet users said they made in the past six months was highest in the U.K. with $1,624. This was nearly double the amount spent by Internet users in the next-placed country, Germany, with $938.

Mathias Duda, head of UK operations at FACT-Finder, said: “The growth of ecommerce has made it much easier for even small brands and retailers to trade outside their domestic markets."

He added: “We hope others will find this report enlightening and perhaps start a conversation about how retailers see themselves in the European market and consider how cross-border trading might be improved.”

European shoppers are ready for m-commerce

Retailers across Europe need to develop their m-commerce strategies fast as many shoppers across the region plan on using their mobile devices for m-commerce in the next year.

Just as most of us are getting used to e-commerce, a new kid rocks up and starts throwing his weight around in the digital marketplace. That is right, m-commerce is here and its getting all up in your face!

According to new figures released by Akamai, media distribution specialists, a third (30%) of consumers across Europe are using, or plan to use, their mobile devices to conduct e-commerce.

Ten percent of them are already using mobile devices to make purchases and 20% intend to start doing so within the next 12 months. I must add that I personally have completed a number of purchases from my mobile phone, from pizza to dvds.

The evidence indicates that despite there being thousands of mobile apps relating to retailers and brands, consumers in prefer to use mobile browsers to access the Internet. I have done both and although the Amazon app is adequate, a mobile friendly website is much better and usually more up to date with offers and your shopping history.

Recent research by Orange indicates that, mobile browser use was found to be highest in the U.K. (70%) although a similar percentage of French mobile users also prefer browsers (68%). The Spanish are split evenly between browsers and apps while Poland is the only country to favor apps over browsers (45% vs. 39%).

"With increasing numbers of shoppers going online with mobile devices, it is important for retailers to get their mobile e-commerce strategies right the first time and the need for security, website performance, scalability and availability has never been more important to underpin success in the online marketplace," says Akamai's international marketing vice-president, Martin Haering.

Akamai's research also indicates an increase in online spending among 30% of the 1,500 respondents while Spain emerged as the fastest growing e-commerce market in Europe, where 44% of consumers reported a willingness to spend more on-line. The highest spenders online in Europe tend to be aged between 35 and 54 years of age, each spending around $2,111 per year.

Nearly two thirds (62%) of respondents purchased clothes and footwear online, making this the largest category of spend in the survey, followed by more 'traditional' online items such as books and magazines (59%). Online travel accounted for nearly half (47%) of spend.

"E-commerce sales keep growing - despite the recession online sales grew by over 20% in 2009 - and the market is rapidly diversifying," commented Ivano Ortis, research director at IDC Retail Insights, which carried out the research.

"Basket size is increasing, as is the level of services and support that customers are expecting from e-commerce websites."

The moral of the story is, if your customers are diversifying the way they shop, are you diversifying the way you sell? If you are still holding out in going e-commerce, this is the time to address that and look at making your new site mobile friendly.