Multiple major reports have identified that many products sold on online marketplaces are not compliant with required standards. A core reason why is because online competition is fierce and many sellers avoid costs by being non-compliant and avoiding fees/levies. This discourages innovators as they are often under-cut by sellers selling non-compliant products.
Quality is an important buying consideration for over 46% of consumers. For something to be considered as high quality, the product needs to both meet customer's expectations and conform with the required standards.
The world ecommerce market is worth \>£600 billion per year. If quality-seeking consumers are 46% of this, then the opportunity value for establishing a UK-based consumer ecosystem that is trusted for meeting standards \[a Trusted OnLine Sales Ecosystem (Trusted OSE)\] and where consumers can come to buy based on quality, is enormous . Furthermore, sales in such a Trusted OSE should have higher margins as sellers who avoid costs by avoiding compliance and levy costs would be excluded.
This proposal will develop the tools and policies that will differentiate the UK online sales ecosystem so it is known as a Trusted OSE. A UK-based Trusted OSEs should encourage UK Innovators as these will be fairer places due to improved implementation of regulations and where innovations are not undercut by unfair competitors. The trusted OSE would create a unique UK Brand globally. It will be equivalent to 'why buy german engineering - because you trust the quality'. 'Why buy from UK trusted OSEs because you can trust the quality'.
3,000
2024-03-01 to 2024-08-31
Collaborative R&D
UK digital/online trade is a £130 bn p.a. success story. This success is underpinned by the high quality of UK products. This quality is underpinned by world class consumer product safety regulation which makes the UK one of the most attractive places to do buy goods online. However, the regulations underpinning this admirable reputation have to adapt to the rapidly emerging new products which incorporating novel digital technologies such as ChatGpt, novel AI tools that learn and try to predict actions or connect through the internet to unforeseen websites. Further the regulations are being challenged by new ways of selling products online, For example, people might be able to buy products through their TVs, social media clubs or flash sales on mobile phones.
This means the regulations must adapt and that this adaption must give the buyers the confidence that what they are buying is of high quality and trustworthy. Further, the regulations must also provide the buyer the confidence that the online route they are buying through is also trustworthy and robust. If done right, this will give UK digital products and services a serious reputational advantage over products arising from other nationalities as people can continue to trust British products and UK-based sales routes.
This discovery project aims to set up a Digital Consumer Product Safety Research and Innovation Network which can provide regulators with the required knowledge, insights and data that will help them to make high quality decisions regarding new regulations in this market and how to monitor the markets so people selling unsafe products are removed and are unable to expose consumers to risks.