Update on European E-Commerce

by Bill Dunlap
Web Commerce Today, Issue 6, January 15, 1998

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This article contains older information. Go here for newer information on ecommerce and selling online.

Back from a recent trip from the US to Europe, Bill files this report. We also invite reports on advances in e-commerce in your country from our readers around the world. Mr. Dunlap's firm helps companies market their website in other countries, focusing primarily on European and US markets.

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Several countries in Europe have been doing online shopping long before the Web became popular. Their various teletext systems have had varying degrees of success in e-commerce, with the French Minitel leading the pack (20% of the French adult population have made purchases by Minitel, in comparison with 3% of the same population in the U.S.). There are 18 million people using the Minitel in France, the English and Dutch have teletext systems, and 2 million people use T-Online in Germany. It will take some time to migrate their habits onto the Web, as well as invest in online stores on the Web (which mirror what they already have on Minitel and T-Online). Once the French and Germans migrate to the Web, their online spending habits should naturally follow and e-commerce should see a bonanza.

Each country in Europe is starting to establish its own shopping Websites and payment mechanisms. The European Union has invested in a test Website, called e-Christmas (http://www.e-christmas.com), available in 6 languages, to encourage online shopping, and to see what the reaction is. IBM-France is behind a French e-commerce site (with the very un-French name of SurfAndBuy: http://www.SurfAndBuy.com). German has a very popular shopping Website Shop24 (http://www.shopping24.de), with 1.4 million articles.

Germany

E-cash software was just put into beta-test last October by Deutsche Bank (Germany's largest bank: http://www.deutsche-bank.de/wwwforum/e-cash/). German people do not use checks and credit cards to pay for merchandise or services they purchase; they use bank transfers instead. E-cash had to devise a secure method for customers to fill out a form on a Web page, which debits their bank account for the amount of the purchase. This is the only such application for debit payments to date in Germany.

U.S. software vendor CyberCash (http://www.cybercash.de) has made deals with the Dresdner Bank and Landesbank Sachsen to provide online payment solutions, and more banks should be added to this list soon.

InternetWorld magazine (Germany) tested six e-commerce solutions in their December 1997 edition. Intershop, who makes software for creating an online store, happens to be from Germany (they just moved their main headquarters to San Francisco last year.) Their German operation continues to be the top supplier for this application in Germany.

A recent survey of people online in Germany and Austria showed that 40% of those who were surveyed have already bought something online. Most popular was the automobile/motorcycle/sport area (16%), followed by the computer area (15%). (source: Global Online magazine, http://www.global-online.de, November 1997, p. 8).

France

Kleline software (http://www.kleline.fr) is the French leader in financial transaction software. Online shoppers can pay for their purchases in 20 different currencies, and Kleline is currently testing the "millicent" feature (for spending very small amounts).

Virtual shopping centers that have chosen Kleline's software for payment mechanism include Globe Online (http://www.globeonline.fr), 3 Suisses (a large French mail-order store) and BR Shopping (in Brazil - http://www.br.homeshopping.com.br). It works by means of a virtual wallet kept on the user's desktop to make purchases.

Elsewhere in Europe

• Finland: UUnet is working with Merita Bank to provide e-commerce.
• Norway: The Norske Bank provides a platform for e-commerce.
• Austria: Bank Austria provides a platform for e-commerce.

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