Although analysts expect steady e-commerce growth in Europe, they also predict it will lag behind the U.S. for years to come. And trail the U.S. it does. The reasons why Europe trails the U.S. so badly in e-commerce are myriad, but the cost of going online is a major culprit. During peak times, U.K. and German costs would soar. Only in the Nordic countries has there been stiff telecoms competition.
Transmission bandwidths across much of Europe are insufficient.
That means Internet connections on the Continent are slower than in the U.S., which forces people to remain online longer, further running up phone charges. And rates vary widely across Europe. Comparisons with the U.S. are somewhat unfair. Despite its size, the American market is unified by language and currency. Because of language and cultural differences between European countries, it's likely that most Internet retailers in Europe will remain nationally or regionally focused, and that will limit growth.