Austria retail sector faces pressure from international platforms and new package tax

The Austrian retail landscape is undergoing significant structural changes due to the rise of international e-commerce platforms such as Temu, Shein, and TikTok Shop. According to Advicum Consulting, approximately 2.8 million Austrians now shop via these providers, with nearly two-thirds of all national online spending flowing to foreign entities.

Local retailers are facing increased pressure, with 70 percent of merchants reporting a worsening situation compared to last year and 69 percent expressing pessimism regarding the future. Experts note that the competition is no longer just about price, but also about data competence, speed, and the ability to reach consumers throughout the entire customer journey.

Adding to these challenges, a new package tax is set to take effect in Austria on October 1. This levy applies to large online retailers and marketplaces with annual revenues exceeding 100 million euros in Austria. Approximately 16 major companies are affected, including Amazon, Temu, Zalando, Shein, and AliExpress. The tax is generally set at two euros per package, which may lead to increased costs for consumers depending on how retailers choose to pass on the fee.