Online Commerce Pattern in European Union Countries between 2019 and 2020

Abstract

The development of information technology, along with the high growth and diversification of consumer needs, has revolutionized the way in which business-to-consumer transactions occur. All this progress was boosted by the COVID-19 pandemic period in a different manner in each EU country, depending on different local aspects. The main goal of this paper is to determine the key characteristics of e-commerce in European Union countries in a pandemic context, based on Eurostat Digital Economy data for 2019–2020. Therefore, for an easier visualization, based on PCA, using 27 analyzed variables, new unique dimensions were revealed: 1. heavy online purchasers, 2. triggers for embracing digital purchasing, 3. perceived barriers against buying online (privacy concerns, security, or not having a card), 4. dynamics of online interaction with public authorities, and 5. enterprise online sharing. Moreover, clustering techniques set four groups of countries with different online commerce patterns that might require attention, according to their specificities, both from a government level and from a business perspective. Special attention is paid to Romania, which has one of the biggest e-commerce industries in Southeastern Europe, but with the share of e-commerce in total retail still quite low, despite this great increase. The models of other countries could be important in helping Romania to catch up with the most successful economies in terms of e-commerce.

Keywords

• e-commerce
• online consumers
• principal components analysis (PCA)
• EU