Nine out of ten German online sellers say that bureaucratic procedures place a heavy or very heavy burden on them. Rules around product safety and packaging generate the most administrative hassle. Sellers are spending a lot of time and energy on complying with all laws and regulations.
This is evident from a survey conducted by the German retailers’ association Händlerbund among online sellers. Well over half (56 percent) describe the bureaucratic burden as very heavy; complying with regulations requires a great deal of time and resources. Another 33 percent say the burden is heavy and a recurring challenge. Combined, that amounts to 89 percent – a very large share.
Structural obstacle
Of the remaining respondents, 10 percent describe the burden as moderate – complex at times, but manageable – while 1 percent consider it low. None of the respondents say they experience no bureaucratic constraints.
Bureaucracy affects all online retailers
Onlinehändler News, the editorial arm of Händlerbund, concludes that bureaucratic processes are not an individual problem for online retailers. “Rather, they represent a structural obstacle to efficiency, growth and innovation across the entire sector.”
Biggest challenges
The survey shows that 76 percent of online retailers struggle with issues related to product safety and product labelling. An equally large group says that packaging regulations are a burden. Data protection and GDPR rules rank third, with 54 percent of online sellers citing them as a challenge.
The main issue lies in parallel obligations
Sustainability and reporting requirements are also seen as burdensome by a majority of online sellers (52 percent). Onlinehändler News emphasizes that it is not a single rule that complicates life for sellers. The main issue lies in the sheer number and complexity of parallel obligations. Entrepreneurs spend a great deal of time and energy complying with laws and regulations, which comes at the expense of their flexibility and ability to act.
Better laws, fewer changes
Clearer and more practical legislation could help reduce regulatory pressure, according to 77 percent of online retailers. Two-thirds (66 percent) also call for less frequent legislative changes. In addition, 62 percent want simplified forms and procedures to significantly reduce administrative burdens.
Without concrete simplifications and more practical regulation, smaller players, in particular, risk facing a serious competitive disadvantage in an already tight market, according to Händlerbund. This, in turn, could lead to further market consolidation in favour of large platforms. Market concentration in Germany is already high, as shown by other studies.
Bureaucracy plays into the hands of large platforms
According to the Bundeskartellamt, Germany’s national competition authority, Amazon.de accounts for 60 percent of all online sales in the country. At the same time, Amazon is explicitly positioning itself as an ally of local SMEs in Germany and elsewhere in Europe.
Many German retailers dissatisfied
Händlerbund regularly studies ecommerce in Germany, especially from the perspective of merchants. A year ago, for example, it found that a majority of German online retailers are dissatisfied.
