Comment by bambax
8 hours ago
Yes. I used to sell objects on Amazon in Europe. You can sell from just one country, but then each sale outside of that country is an "export" that triggers high fees.
For sales to be "local", products need to be stored in warehouses in each country. But that in turn means the owner of said products (the seller) has to be registered for VAT in that country, and submitting annual reports in each country's language.
I went to the trouble of registering in 6 different countries; in some countries, Amazon more or less helps sellers submit reports; in others, they offer to partner with local lawyers.
The result is a mess of reports, injunctions, penalties for late filing, etc. coming to you in Polish, German, Spanish, Hungarian. I eventually gave up.
Europe is not actually a "single market". It's a federated bureaucracy entirely indifferent (or hostile) to small businesses.
Having worked on the inside: this is by design. You know for 100% that Pepsico and Coca Cola unleashed an army of lobbyists to make sure the laws were written in a way where the single market only worked for large business.
It's comforting to believe that large corporations with the greed of the rich and powerful is what makes these inefficiencies but really it's about a million little political negotiations, primarily driven by voters dislike of change.
It's comforting to believe that actual voters have that kind of political influence over these things, but really it's about a million little talls, primarily driven by lobbyists commanded by big companies
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How is that comforting? The phenomenon is entirely negative.
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Lobbyists don't do this. Regulators/lawmakers need to be corrupt and/or incompetent for lobbying to do this.
You need lobbyists to pull on one side and the general population to be too uninformed or too non-caring to not pull enough in the other direction.
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You need both, and both are responsible for the current state.
To stop this, you need to try to stop both until one doesn't exists.
> lawmakers need to be corrupt and/or incompetent for lobbying to do this.
Not really
Lobbyists get to talk into the ears of the powerful. It is literally their job. They make very sensible arguments for their point of view. So it seems very sensible, for the legislators, to make laws that aid the powerful and impede the weak.
The legislators are very busy with pressures from all sides. The cognitive load of considering views that you do not hear is enormous. It is not "incompetent or corrupt" to fail.
The system has the corruption baked in. It is one of the mechanisms, of many, that wealth and power concentrate in "democracies "
I have seen this process from the inside, good people making terrible decisions
The lawmakers are: in the EU you have a block of right-wing parties. The large part are funded by large companies and make laws which favour them. Same thing as in the US.
There are other right-wing (and left-wing) blocks who are funded by the Kremlin and Kremlin-supporters who just try to break things.
At the EC they're not corrupt, they try their best, but they're often given bad advice and are themselves not experts. And their power is limited (they can nudge but not push).
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So lobbyists did do it then?
Is that with the One-Stop-Shop regulation or was that before that?
If it was before than, then the EU recognized the problem and implemented a fix for it.
Yeah, it only took 4 years for them to fix an obvious screw up. Only 4 years. Surely every business can survive that.
I don't think any EU One-stop-shop scheme covers "local" goods sales in other EU member states yet, i.e. an EU company has to register in all EU countries they hold stock in.
That is changing with the Single VAT Registration (SVR) legislation, effective in 2028.
This was 2017-2021. Not sure if One-Stop-Shop covers this as it mentions "cross-border sales" and the problem with Amazon fulfillment and storage was to make all sales local (not cross-border). But maybe it does cover it. I don't know.
Kinda sounds like it would have been cheaper, more profitable, and less of a PITA for you (a European!) to sell in the US?
Let's say I'm a German small business owner.
Tomorrow Europe becomes a single market. How do I compete with a similar business but from a country where business costs are significantly lower ?
How does a Californian company compete with a company in Missouri that has lower labor costs and less overhead/ regulation?
They seem to manage this just fine, but it's a pretty similar scenario. You could also push for standardized business costs and regulations eu wide ofc to help.
Standardized costs would just hurt the poorer members more. You’re underestimating the economical difference between EU member states. It’s more like if Californian businesses had to compete with Mexican in a single market, and Mexicans would be paying Californian prices with Mexican wages in the end.
The Californian company probably opens their new plant in Missouri, so now it's not exactly a Californian company.
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You boast about the superior quality of german manufacturing. Or move your manufacturing to eastern Germany where costs are lower.
You specialize in things that are more difficult to make in poorer countries - you use your advantages they use theirs. Afterall this is what happened to a lot of Polish industry after we got our EU membership - it died under pressure of already developed competition from countries like Germany.
You don't and that's by design.
Indeed, and that's why we need more EU, not less of it.