Mallorca businesses want to sell online but are at a disadvantage. | Photo: Govern de les Illes Balears
Andrew EdeSabrina VidalPalma20/10/2026 08:56
The Balearic Trade Confederation (CBC) is calling for a form of 'residents' discount' for the shipping of products from Mallorca to the mainland, as this is more expensive than products that are sent from the mainland. It is particularly disadvantageous for businesses that sell online.
The CBC president, Mateu Cuní, says: "It is unacceptable that, when selling online, shipping from Mallorca to Madrid costs more than shipping from Madrid to Mallorca." He is proposing a subsidy for shipping costs at a time when retailers are trying to expand their markets through digitalisation but incur transport costs that eat into the profitability of every order.
Joan Riera of the Pimeco retailers association argues that logistics costs act as a barrier to the growth of digital sales. "Balearic companies have the right to compete on equal terms with everyone else." The issue goes beyond the price of an individual parcel. If a business manages to grow, it may eventually relocate its logistics operations to the mainland, resulting in a loss of investment and economic activity for the islands.
A Pimeco survey of some 600 businesses in Mallorca highlights the challenges in making the leap to e-commerce. 54% of the businesses surveyed do not sell online and have no plans to do so in the future. Among those that do, digital sales account for only a small fraction of their total revenue.
Antonio Vilella, president of another retailers association, Afedeco, says that the disadvantage is not limited to shipping to the customer; it also affects procurement, replenishment lead times, and returns. A single transaction can involve multiple movements of goods - from receiving stock to processing a customer return - creating a burden that is particularly difficult for small businesses to bear, as they lack the high order volumes enjoyed by large platforms. "We want to sell online, but the conditions we face differ from those of others."
Afedeco argue that any financial support should take into account the size of the businesses and the specific circumstances of each island. They also propose the establishment of consolidation hubs for goods, which would allow for the grouping of shipments and the negotiation of better shipping rates.
Catalina Barceló, the government's director general for the economy, says she understands the sector's concerns and has held several meetings with business associations. However, she points out that current regulations only allow for subsidies on the transport of goods originating from the Balearic Islands if the product has undergone at least 20% of its value-added processing within the region.
The government is currently preparing a study to analyse "the additional friction associated with island geography in terms of commercial trade". The initial results, which could help identify excess costs and provide a basis for future policy measures, are expected in December. Business associations emphasise that this analysis must explicitly include the retail sector, covering procurement costs, outbound parcel delivery, and returns.