EU Levy Cuts Asian E-Commerce Parcels by 40%

The European Union's new levy on low-value imports has triggered a sharp decline in shipments from Asian e-commerce platforms. Since July 1, Brussels has applied a EUR 3 levy to each product category in low-value parcels entering the EU. According to French customs figures cited by the French Ministry of the Economy on August 27, imports of these parcels have fallen by an estimated 30% to 40% across the bloc.

The measure is intended to curb the rapid growth of Asian online marketplaces while helping level the playing field for European retailers. It targets a market where, in 2025 alone, nearly 5.9 billion small parcels entered the European market - more than 180 every second - marking a fourfold increase compared with 2022. Of these shipments, 93% originated in China, where exporters had benefited from the EU's customs duty exemption for parcels valued at less than EUR 150.

Impact on Platform Sales and Strategy

Early market data suggests the measure is already reshaping consumer behaviour. Shopping app Joko, which analyses the bank transactions of 1.5 million users in France, reported a sharp decline in sales for the targeted platforms between June and July: Temu's sales fell by 50%, AliExpress dropped by 37%, and Shein declined by 15%.

At the same time, retailers appear to be adjusting their pricing strategies to offset the new costs. According to Joko, Temu increased its average basket value by 30% between June and July, while AliExpress raised it by 27%. AliExpress has also confirmed that customs duties are now included in its listed prices.

Safety Concerns and Platform Criticism

The European Union believes that a significant share of imported products -including cosmetics- fail to comply with EU regulations and may also pose potential safety risks. In July, French consumer group Que Choisir Ensemble warned consumers about sunscreens sold on Temu, AliExpress and Shein. The advocacy group said the findings were alarming, with nine of the ten products tested found to be non-compliant and most failing to deliver the sun protection they claim to provide.

AliExpress has criticized the new levy as socially unfair. The platform told reporters that the very design of these measures contains fundamental flaws, arguing that the additional costs fall disproportionately on low-income households across Europe and exacerbate the cost-of-living crisis. Shein, also contacted by AFP, declined to comment, while Temu did not immediately respond.

Logistics, Future Fees, and Broader Context

Shein's more limited decline may reflect its growing European logistics footprint. The Singapore-based fashion retailer, originally founded in China, opened a large warehouse in Poland in December 2025, reducing its exposure to the new levy, according to Joko.

The levy is a temporary measure ahead of the European Union's broader customs reform in two years. From November, it will be complemented by additional processing fees to help finance customs services. While the final amount has yet to be confirmed, the fee could reach EUR 2 per parcel.

Further evidence of the levy's impact comes from the UK, which is not subject to the EU measure. According to figures shared by market research firm NielsenIQ, Chinese marketplaces recorded a 5% increase in sales value in the country during July. Major Asian e-commerce platforms - led by Shein, Temu and AliExpress - have rapidly expanded across Europe, but they also face growing criticism over environmental impacts, unfair competition and alleged links to forced labour in their supply chains.