Main Challenges Facing European E-commerce Businesses

European e‑commerce has seen strong and sustained growth in recent years. According to a report from industry association Ecommerce Europe, the sector grew by 15% in 2016 and was forecast to reach a value of €602 billion by the end of 2017 – representing a further 14% year‑on‑year increase.

This growth has been driven by rising online sales in emerging Eastern European markets such as Ukraine and Romania, an increasingly digital‑savvy younger generation of shoppers, and initiatives like the EU’s Digital Single Market strategy.

However, despite these positive indicators, European e‑commerce businesses still face a number of challenges that require careful planning and the right delivery and technology partners.

Delivery Speed and Reliability

Slow or late deliveries remain one of the biggest pain points for e‑commerce businesses worldwide. Customers who experience delivery issues are far less likely to return and may leave negative reviews that can damage a brand’s reputation.

Although Europe benefits from strong transport links between many countries, factors such as extreme weather, political disruption and unreliable carriers can still cause delays.

One effective way to mitigate this risk is by using parcel tracking services. Global parcel tracking helps businesses identify where delays are occurring, allowing them to address recurring issues quickly. It also offers customers greater transparency and reassurance by keeping them informed every step of the way.

Technical and Cybersecurity Risks

Technical failures and cyber threats continue to pose a serious risk to Europe’s e‑commerce sector. A UK government study found that 46% of British businesses experienced at least one cybersecurity breach or attack in the previous year.

For e‑commerce businesses, the impact can be particularly severe. Customer data, payment information and revenue are all at risk if systems are compromised or websites go offline.
To reduce exposure to these threats, e‑commerce businesses should consider the following best‑practice measures:

• Use a secure and reputable e‑commerce platform

• Ensure online checkouts are protected with secure connections

• Encourage customers to create strong, complex passwords

• Layer security with firewalls, protected contact forms and secure login areas

• Store sensitive and payment data on offline or segregated servers

• Engage experienced professionals to manage and monitor online security

Taking a proactive approach to cybersecurity helps protect both your business and your customers’ trust.

Political Uncertainty and Brexit

The most significant political event affecting cross‑border e‑commerce in Europe in recent years has been the UK’s decision to leave the EU.

If protectionist trade policies or additional customs requirements are introduced, this could increase costs and complexity for businesses trading between the UK and EU member states. New regulations and administrative processes may also add pressure to internal resources.

Much depends on the long‑term outcomes of post‑Brexit trade agreements, but e‑commerce businesses should be prepared to adapt their delivery strategies and compliance processes as the political landscape evolves.

Cross‑Border Regulations

Another ongoing challenge is whether existing EU policies are equipped to support the continued growth of European e‑commerce.

The European single market provides access to over 500 million potential consumers, but further regulatory development will be required to ensure cross‑border trade remains efficient and consumer‑friendly. Any future expansion of the single market could introduce additional complexities for both businesses and customers.

Staying informed and working with experienced logistics and delivery partners can help businesses navigate these regulatory changes more confidently.

Preparing for Growth

While these challenges are likely to affect many European e‑commerce businesses in the coming years, the opportunity for growth remains significant.

By investing in reliable delivery solutions, making use of parcel tracking services where appropriate, and preparing for political and regulatory change, businesses can position themselves for long‑term success in a fast‑moving market.

Are You Ready for Brexit?

Trading across borders doesn’t have to be complicated.

Read our Brexit preparation guidance to find out how Whistl Parcels can support your business with reliable, compliant delivery solutions.