Temu and Shein face slowdown in Europe due to new EU customs rules

Asian e-commerce platforms Temu, Shein, and Aliexpress are facing significant headwinds in Europe due to new regulatory measures and customs changes. In Germany, the Federal Association of E-Commerce and Mail Order (BEVH) reported that revenues for these three platforms fell by 35.5 percent in the third quarter compared to the previous year, totaling 566 million euros. Their market share in German online retail dropped to 3.1 percent from a previous high of 5.3 percent.

The decline is attributed to the removal of the 150-euro customs exemption for small shipments from non-EU countries. Currently, a flat-rate customs fee of three euros applies to small shipments per product group, and a two-euro processing fee is expected to be implemented in November. These measures aim to curb the influx of low-priced goods from third countries into the European market.

In Austria, Temu has grown rapidly, with a gross merchandise volume of approximately 646 million euros projected for 2025. However, the platform faces increased pressure from the European Commission, which imposed a 200-million-euro fine in May 2026 under the Digital Services Act for failing to adequately assess the systemic risks of illegal products on its marketplace.