EU wants to compare cross-border delivery rates online

The European Commission wants to set up a website to display the cross-border delivery rates offered by logistics companies. With this new initiative, the EU wants to make cross-border parcel delivery services more transparent and better monitored.

The Council of Europe shared its position on a new draft regulation, which is part of Europe’s plans to boost ecommerce under the digital single market. If the plan is approved by both the Council and the European Parliament, a new website will be launched to make it easier for consumers and companies to compare cross-border delivery rates and choose the best ones.

The EU thinks that if there is more price transparency and if delivery firms will be better monitored, the market will become more efficient and tariffs will go down. Currently, the Council claims, tariffs are often not fully justified by objective factors such as wages or geographical distance.

Small delivery companies excluded from information obligation

“We hope these new rules will lower delivery prices for citizens, especially those living in rural areas, and also for small businesses, which have limited negotiating power to strike good delivery deals”, the Maltese presidency explained. Small delivery companies won’t be obliged to provide their rates, because that would create an “excessive administrative burden” for both the companies and the national administrations that will collect the information.

15% of consumers shop online at foreign stores

With more transparent and cheaper pricing, cross-border ecommerce in the European Union should grow even harder. Currently, 44 percent of consumers buy online in their own country, while only 15 percent order online from other member states. The most important reasons why people don’t shop online at foreign stores is because of the high delivery charges.