China Challenges EU’s Proposed Per-Package Fee Impacting Major E-Commerce Players
A newly proposed regulation before European lawmakers aims to introduce a per-package fee on small parcels shipped into the EU. This measure is expected to increase operational costs for prominent Chinese e-commerce giants, including Shein and Temu, who have rapidly expanded their presence in European markets through affordable fashion and consumer goods.
The introduction of this fee is part of the EU’s broader strategy to regulate cross-border e-commerce more effectively and to address concerns related to market fairness, environmental impact, and the financial burden on local postal services. Small parcel shipments from overseas, especially those under a certain value threshold, have grown substantially in the last decade, largely driven by Chinese sellers offering low-cost products to European consumers.
Shein and Temu, known for their fast-fashion and budget-friendly offerings, rely heavily on streamlined logistics and low shipping costs to maintain competitive prices. The per-package fee could disrupt this model by increasing shipping expenses, potentially leading to higher prices for European shoppers or adjustments in the companies’ shipping policies.
China has responded firmly to the proposal, signalling concerns over trade fairness and the potential impact on international e-commerce flows. The developments reflect the ongoing complexities in balancing free trade, consumer interests, and regulatory compliance in an increasingly globalised marketplace.
European consumers and businesses will need to watch closely as this legislation progresses, as it may reshape how online retailers operate and affect prices and availability of imported goods within the EU.
Source: China delivers strong words to EU over proposed small parcel fees
Author: South China Morning Post
