SHEIN revenue in Europe falls due to new EU tax on packages
SHEIN's European revenue fell by 13.9 percent last quarter, largely due to new EU import duties on small packages from outside the bloc. The company also increased prices and reduced advertising, leading to lower sales volumes as it adjusts to these stricter trade regulations.
SHEIN recently reported a 13.9 percent decline in its European quarterly revenue, falling to 3.8 billion dollars. This drop is largely attributed to higher prices, reduced advertising spending, and new European Union regulations that eliminated tax exemptions for small packages. Since July 1, orders from outside the EU valued under 150 euros are now subject to a three-euro import duty, a policy intended to level the playing field for local businesses and improve product safety oversight.
In response to these changes, the Dutch customs authorities have observed a significant decrease in individual packages arriving directly from China. It is believed that major web retailers are shifting their logistics strategies by importing goods in larger bulk shipments and distributing them from within European warehouses. Similar regulatory shifts previously occurred in the United States, where the removal of tax exemptions for packages under 800 dollars also impacted the company's established business model.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
