EU tightens rules on ultra-cheap online shopping
The European Union is tightening rules on low-value imports, putting new pressure on online platforms such as Shein and Temu that have built their European businesses around inexpensive products shipped directly from Asia.
The EU introduced a temporary €3 customs duty on low-value parcels from outside the bloc on July 1, ending the previous exemption for imports worth less than €150.
The measure is designed to address what EU institutions describe as unfair competition, customs fraud, unsafe products and the environmental impact of the growing number of small parcels entering Europe.
Prices face upward pressure
E-commerce analyst Juozas Kaziukenas said the changes were primarily aimed at reducing the price advantage enjoyed by platforms that ship directly from overseas.
The new charges have increased the final cost of some low-priced orders, with Kaziukenas saying the total price of some products has at times doubled.
Platforms have responded differently. Temu has listed separate charges, while Shein has increased prices to absorb additional costs.
The changes are also affecting marketing and customer acquisition. Kaziukenas said both companies have significantly reduced their push in European markets, while their apps have fallen in rankings in several European countries.
Lea Auffret of the European Consumer Organization said it was still too early to determine whether consumers were permanently changing their shopping habits.
Parcel volumes fall
The impact is also being felt across European logistics networks.
Estimates cited by Auffret indicate that parcel volumes have fallen by between 30% and 70% in some markets. Belgian broadcaster RTBF reported that arrivals of small parcels from Shein and Temu at Liege airport had halved following the introduction of the duty.
French customs has estimated that small-parcel imports have declined by 30% to 40% across the EU.
The scale of the decline could change the economics of direct-to-consumer shipping, particularly for very low-value purchases.
Platforms turn to warehouses
The new rules are encouraging companies to rethink how goods reach European consumers.
Instead of shipping individual orders directly from Asia, platforms can import larger quantities into Europe and store products in regional warehouses before selling them to customers.
Shein opened a major logistics hub near Wroclaw, Poland, in 2025 as part of its efforts to expand its European supply chain.
Kaziukenas said platforms had anticipated the regulatory changes and had been working for years to diversify their supply chains, establish local warehouses and recruit European sellers.
Temu has made greater progress in diversifying its supply, he said, while Shein faces additional challenges because of its rapid production of new designs.
France adds further pressure
France has taken additional measures against ultra-fast fashion.
The country introduced a levy on ultra-fast-fashion products in September, affecting platforms including Shein and Temu. The charge is scheduled to increase over time and could approach €20 per item by 2030.
French measures are linked to environmental concerns, including the difficulty of repairing and recycling low-cost clothing.
Consumer groups have also raised concerns about product safety and the presence of chemicals exceeding legal limits in some imported goods.
Wider customs reform ahead
The EU's longer-term reforms go beyond the temporary €3 duty.
The European Parliament has approved a broader reform of the EU Customs Code that would treat platforms facilitating direct sales from outside the bloc as importers. A separate handling fee is also due to be introduced by November 1, 2026, at the latest.
Further obligations for online marketplaces are expected from 2028, including requirements aimed at ensuring products sold online comply with EU safety rules.
Cheap rgoodsemain in demand
Despite the higher costs, low-price platforms are unlikely to disappear from Europe.
Kaziukenas said many products sold through the platforms could remain cheaper than comparable goods from European retailers, even after additional charges.
The regulatory changes instead point toward a different business model, with platforms under pressure to localize inventory, strengthen compliance and change their logistics networks.
For consumers, the result is likely to be higher costs for some low-value imports and greater scrutiny of products entering the European market.
For Shein, Temu and similar platforms, the European market is entering a period of adjustment as customs, consumer protection and environmental rules reshape the economics of ultra-cheap online shopping.
Source:AA
