Pictured above (L-R): Horst Heitz, Chair of the Steering Committee of SME Connect; Christophe de Smet, Co-founder and CEO at Garzini, SME from Belgium and Amazon Seller; Henrik Dahl, Member of the Committee on the Internal Market and Consumer Protection and MEP (Member of the European Parliament); Marie-Hélène Pradines, Head of Unit SMEs at European Comission; Martina Manna, Co-founder at Benvolio, SME from Italy and Amazon Seller; and Juliette Beaulaton, Policy Director at Ecommerce Europe.
SMEs selling on Amazon from six key EU countries shared their views on reforming the Single Market during a breakfast event in the European Parliament. They discussed the findings from a report by Implement Consulting revealing that regulatory barriers limit up to €15 billion in cross-border trade.
During a breakfast event in the European Parliament, SMEs selling on Amazon from six key EU countries, including Germany (Heim & Büro), France (Y-Brush), Italy (Afroricci and Benvolio), Spain (Craftelier and Fetén), Poland (E-wicker), and Belgium (Garzini), highlighted several regulatory barriers impeding their growth in the Single Market.
The working session, organised by SME Connect, unveiled a comprehensive report from Implement Consulting commissioned by Amazon, identifying 11 urgent reforms needed to drive economic growth and preserve EU competitiveness.
This research entitled ‘The heart of the Single Market – voices from European SMEs’, provides concrete recommendations to simplify and streamline processes and regulations, creating a more robust and unified Single Market. The proposed measures include promoting digital labelling, creating a single VAT ID, and developing a one-stop-shop to Member States’ extended producer responsibility (EPR) systems.
The report, based on comprehensive surveys and interviews of SMEs across various EU countries was supported by local business associations and reveals that regulatory fragmentation creates barriers for European SMEs at every stage of cross-border operations. For instance, Belgian accessory manufacturer Garzini reported “In Germany, it took our company 4-5 months and many up-front costs to get a VAT number”, said Christophe de Smet, co-founder and CEO. The French toothbrush innovator Y-Brush incurs €4,000 annually in VAT-related expenses for a single country. These administrative requirements burden small businesses, impacting their ability to compete across the Single Market. German supplement company BabyFORTE faces inconsistent regulations on identical ingredients across different EU markets, forcing costly product reformulations.
The timing of this discussion appears particularly relevant, following the release of the European Commission’s new Single Market Strategy. The voices of those who drive Europe's economy – our SMEs – need to be heard. These businesses represent over 99% of all EU enterprises and provide two-thirds of private sector employment.
"While the Commission has acknowledged these issues in principle, our research shows that practical implementation is lagging dangerously behind the pace of global market development," said Eva Rytter Sunesen, partner at Implement Consulting.
According to MEP Henrik Dahl, Member of the Committee on the Internal Market and Consumer Protection, “SMEs are dealing with confusing procedures and barriers to grow. SMEs should be empowered to innovate and grow in Europe. The regulatory fragmentation across the Single Market creates unnecessary burdens that disproportionately impact small businesses. We must prioritise reforms that streamline cross-border operations to maintain EU competitiveness in the global marketplace."
The importance of digitisation for SMEs
The session highlighted the role that online stores play in providing services to SMEs in their digitisation. In the case of Amazon, more than 60% of sales come from independent sellers, most of which are small and medium-sized enterprises. These 127,000 EU SMEs selling in Amazon’s store achieved more than €15 billion in total export sales worldwide. These figures demonstrate how digital tools and online marketplaces are helping European businesses reach new customers across borders.
Looking ahead
The roundtable discussions highlighted several key priorities for reform:
- Simplifying cross-border trade through unified regulations
- Creating a single VAT ID system
- Enabling digital labeling
- Streamlining payment systems across the EU
Focusing on effective implementation, Dharmesh Mehta, Amazon VP for Global Seller Services, stated "a strong Single Market is the most important opportunity to strengthen EU competitiveness and promote cross-border business. The numbers tell a powerful story: 127,000 EU-based SMEs sold over 1.3 billion products worldwide through Amazon last year. These entrepreneurs are creating an estimated 350,000 jobs across the EU, many in rural areas. Unlocking the full potential of EU SMEs requires continued collaboration to address how we can strengthen the Single Market and support European SMEs selling across EU borders."
As the EU shapes the next phase of its Single Market, Amazon remains committed to supporting European SMEs in their digital journey. By working together with policymakers and business leaders, we can create an environment where small businesses can thrive in the digital economy.
The recommendations presented at this event will help inform future policy decisions as the European Commission develops its new Single Market Strategy, ensuring that the needs of Europe's SMEs remain at the forefront of economic policy.
