The golden age of Shein and Temu might come to an end in the European Union

On 5 February 2025, new charges on imported e-commerce parcels were introduced to regulate the influx of non-compliant trade from China, following an announcement by the European Commission. In recent years, Chinese e-commerce platforms such as Temu and Shein have made significant inroads into the global market, particularly in the European Union and the United States. One key factor behind their enormous success has been the ability to offer duty-free shipping, allowing them to sell products at low prices. However, this advantage has increasingly raised concerns in Western countries, putting local traders at a competitive disadvantage and making it more difficult to control the quality and safety of imported products.

The EU is also concerned about the 4.6 billion low-value parcels (under €150) that entered the EU market in 2024, double the number from 2023 and triple that of 2022. Many of these products do not comply with European regulations. At the heart of the issue is the growing influx of harmful products, while European sellers face unfair competition and an increasing presence of counterfeit goods on online marketplaces. In addition, the commitment of the EU to environmentally conscious regulations is challenged by the mass transport of parcels, which places a significant environmental and climate burden.

In response, the European Commission has urged EU lawmakers and Member States to consider introducing a handling fee for these purchases. The EU aims to foster a competitive e-commerce sector that ensures consumer safety, offers affordable products, and respects environmental sustainability.

To this end, the European Commission has announced an investigation into Shein for potential violations of EU consumer protection rules. The investigation is being carried out in collaboration with the Consumer Protection Cooperation Network, which includes authorities from all 27 EU Member States. If Shein is found to have breached EU regulations, the Chinese e-commerce giant could face significant fines.