THE INTERNET HAS TURN THE WORLD TO A GLOBAL VILLAGE

THE INTERNET HAS TURN THE WORLD TO A GLOBAL VILLAGE

The internet has changed the world. It has greatly impacted communication virtually reducing the world to a global village by enabling individuals to communicate easily and quickly. The internet has also changed the conventional ways of buying and selling and has transformed commercial activities. The term “e-commerce” simply put is the use of the internet to conclude contracts through electronic means. In Europe, statistics show that most countries have a growing internal e-commerce market with more and more e-shoppers using the internet to purchase goods and services daily.  

Countries like Norway, Germany, France and the United Kingdom (just to mention a few) have the highest percentage of individuals between the ages of 16-74 that use the internet to order goods and services.  While national e-commerce markets flourish, such an evident contrast exists with regards to the growth of cross border consumer e-commerce. A report on cross border e-commerce in the EU shows that while consumer e-commerce is taking off at the national level all over Europe it is still quite rare for consumers to purchase goods and services on the internet from other Member States.  A further report conducted in 2006 estimated the European e-commerce market to be worth 106 million Euros. 

 Cross border e-commerce has an untapped potential that could empower not only the economies of member states, but consumers as well by providing them with diversity in choice and prices.

There are noticeable barriers to cross border consumer e-commerce which hinder its growth. Several reports like the above mentioned EU report and the Organization for Economic Cooperation and Development (OECD) Conference on Empowering E-Consumers have identified several barriers that have stunted the growth of cross border e-commerce. Factors such as: lack of internet connectivity in homes across local areas in Europe; lack of access to specific websites from other countries advertising goods and services; inadequate consumer confidence in online payment systems from other jurisdictions as well as delivery methods, returns policies and refunds. Language has rightly been identified as one of such barriers, perhaps one of the most important aspects, because it encapsulates such matters as communication, advertising and jurisdiction.