Ankara:The European Union has implemented stricter regulations on ultra-fast online shopping platforms, targeting businesses built around low prices and direct shipments from Asia. A new customs duty of £3 on low-value parcels from outside the EU was introduced on July 1, removing a previous exemption for imports valued below £150. This move aims to tackle unfair competition, customs fraud, unsafe products, and the environmental impact associated with a high volume of parcels entering the EU.
According to Anadolu Agency, the European Parliament has approved a reform of the EU Customs Code. This reform will redefine platforms that facilitate direct sales from outside the EU as importers and introduce a separate handling fee by November 1, 2026. This change is significant, as platforms like Shein and Temu have quickly expanded their presence in Europe by offering low-cost products directly shipped from China.
E-commerce analyst Juozas Kaziukenas noted that these platforms had previously benefited from not paying tariffs, allowing them to offer lower prices. The new measures primarily aim to eliminate this price advantage, making competition fairer. Lea Auffret from the BEUC highlighted that the rise in online shopping has dramatically increased the volume of goods entering the EU, prompting these regulatory changes to combat fiscal fraud and ensure product safety.
The impact on platforms like Shein and Temu has been substantial. Kaziukenas described the changes as 'devastating,' with some platforms increasing prices or listing separate fees to accommodate the additional costs. This has led to a significant decline in their marketing activities and app popularity across Europe. Auffret mentioned that it remains uncertain if consumers will permanently shift to European retailers, although a notable decrease in parcel volumes has been observed.
France has taken additional steps by introducing a levy on ultra-fast fashion products, affecting platforms like Shein and Temu. This levy, part of an 'eco-contribution' strategy, is expected to rise significantly by 2030, addressing environmental and ethical concerns associated with the fast fashion industry.
The future will require these platforms to adapt to new regulations, with the demand for affordable products persisting. Kaziukenas believes that while the platforms will need to adjust, the underlying demand for inexpensive goods will continue to drive consumer interest. The platforms are currently in a transitional phase in Europe, exploring new operational strategies under the evolving regulatory landscape.