Shein prepares a price increase in Europe after the impact of the new EU rate

Shein has been the first to react to the 3 euro rate that the European Union has applied since July 1 to packages from third countries whose value is less than 150 euros.

The Chinese company recognizes that the measure represents a risk for its business and is already preparing a price increase in Europe to cushion an impact similar to that it has suffered in the United States. There, the end of the de minimis exemption - which allowed low-value packages to be imported without tariffs or customs inspection - caused a 14.3% drop in sales in the first quarter of 2026, to 2,040 million dollars, compared to 2,380 million in the same period of the previous year. The blow was also noticeable in its accounts: Shein recorded losses of 99 million dollars, compared to the 395 million profit a year before.

This is stated in the documentation presented by the company itself to the Hong Kong Stock Exchange, where it plans to debut between September and October after years of failed attempts in New York and London. "Similar to the US market, we expect to apply a wide variety of measures in response, including raising our prices in Europe to offset some of the increased costs, and this is likely to have a short-term adverse impact on our sales volume in Europe," the document states.

The so-called Shein rate, in force for more than a month, charges a fee of 3 euros for each different product category in the package, as long as its total amount does not exceed 150 euros. That is, an order with three t-shirts, a mobile phone case and a book would pay 9 euros in tax, as they are three different categories. On the other hand, if the order included only the three t-shirts, the tax would be 3 euros. With this measure, the EU aims to stop unfair competition and the avalanche of low-cost packages from Asian platforms such as Shein, Temu or AliExpress, which according to the Spanish large-scale distribution association, Anged, already account for 34% of online purchases in Spain.

Faced with this new scenario, Shein and Temu have accelerated the reinforcement of their logistics presence in Europe, relying on a network of warehouses that allows them to distribute products within the European Union and thus reduce the impact of the surcharge. Shein has its main hub in Wroclaw (Poland), which will reach 740,000 square meters, in addition to centers in Dublin, Stradella (Italy) and a new 35,000 square meter warehouse in Cannock (United Kingdom), operational since May. This expansion is part of an investment plan of 250 million euros that the company plans to develop in Europe over the next five years. In Spain, it still does not have its own logistics center, although the country is among the sector's preferred destinations for new investments.

Temu, on the other hand, relies on third-party warehouses and aims for 80% of its products in Europe to be distributed from local centers in 2027, under its local-to-local model.