More than half of all retailers in the EU sell online but less than a third of them exploit the continent's single market, research for the European Commission (EC) has found.
Just 29 per cent of small to medium sized enterprise (SME) retailers sell outside their domestic markets, and the majority that do only sell within one or two other EU states.
This is despite 48 per cent of SME retailers saying that they would like to expand cross-border trade.
Retailers cited insecure transactions, differences in consumer legislation and different fiscal regulations as being their main fears over extended inter-European trade.
The survey coincides with a major EC consultation on easing cross-border trade and harmonising consumer rules.
"Retail transactions account for 58 per cent of EU GDP, yet the business-to-consumer market is still very much divided along national lines," said Meglena Kuneva of the EC.
"The results of this Eurobarometer reinforce my view that SMEs are interested in entering the retail internal market but the lack of a clear and coherent set of rules is one of the main factors holding them back."
