Contents |
“E-commerce involves the application of Web-based information technologies toward automating business processes, transactions, and work flows, and buying and selling information, products, and services using computer networks�? (MacGregor and Vrazalic, 2005, p1). The biggest advantage (and sometimes disadvantage) is that electronic commerce provides an immediate global marketplace. Business transactions can occur seamlessly and very quickly from opposite sides of the world. As a global marketplace, movement is increasing. Electronic commerce within one specific area however is interesting to watch.
Europe as a whole consists of a highly developed network of countries. The European Union is the closest concept of a centralized government across twenty-five independent states. E-commerce is also a highly developed business institution within Europe. Although there may be physical boundaries between the nations of Europe, e-commerce is not restricted by physical borders, perhaps one of the most attractive elements of this developing business environment. E-commerce is now embedded within most European corporations (Ellis, 2002).
E-commerce in Europe is not however, without barriers. Ellis (2002) writes there are two major barriers facing the advance of e-commerce in Europe. They are currency differences, and language and cultural differences.
The introduction of the euro currency in 2002 was a step towards improving this barrier, with 12 countries adopting this currency (Ellis, 2002). Money exchange costs are one of the primary deterrents when buying between different currencies.
Language and culture also provide significant barriers. Eastern Europe for example, has the lowest amount of e-commerce usage (ECD, 2003). The link between language and cultural attitudes and percentage of e-commerce retail sales are linked.
Another important barrier restricting the development of e-commerce in Europe is the legal barriers and jurisdiction. The inability to place boundaries on the Internet makes it virtually impossible to regulate the Internet (Eang, 2005). Eang writes “From the second a consumer places an online order until the payment is complete, consumers already have moved in and out of numerous regulatory realms. The transaction could be national or international, and consumers do not know when they are leaving a regulated zone and entering an unregulated area�? (2005, p75). The current debate at the forefront of this legal issue is how and where disputes and regulations should be governed.
With the development of the euro, it is now argued that the euro is providing more advantages for the progress of e-commerce. Ellis writes “combined impact of the single currency and e-commerce can be expected to forge powerful synergies across the euro zone, strengthening and deepening the single market�? (2002). In other words, e-commerce is not only encouraged, but it is developing because one of the barriers has been lowered.
Market integration in Europe is still significantly high and rivals the US, which promotes usage of e-commerce (Ellis, 2002). Countries that generally understand English benefit the most from the advantages and profits of e-commerce, including countries like Finland, Germany, Denmark, Sweden, The Netherlands and of course the UK (ECD, 2003).
Ellis, V., (2002) “The Euro and eCommerce: Bringing Europe Closer to a Single Market�?, Outlook Journal, no. 1, p73-79.
Eang, O., (2005) “Jurisdiction in B2C E-Commerce Redress in the European Community�?, Journal of Electronic Commerce in Organizations, Vol.3, Iss. 4; pg. 75-88.
MacGregor, R and Vrazalic, L., (2005) “The Effects of Strategic Alliance Membership on the Disadvantages of Electronic-Commerce Adoption: A Comparative Study of Swedish and Australian Regional Small Businesses�?, Journal of Global Information Management, Vol.13, Iss. 3; pg. 1-20.
ECD (2003) “Ecommerce Statistics: Europe�?, E-commerce Guide Tutorials,
SophieUhlhorn 09:51, 4 Oct 2005 (EST)
