The European 3 euro fee causes shipments from China to plummet: Temu, Shein and AliExpress record sales drops of up to 40%

The European Union’s new 3-euro tariff on small package imports from outside the bloc has triggered a sharp decline in sales for Chinese e-commerce platforms Temu, Shein, and AliExpress, with some reporting drops of up to 40%. A month and a half after its implementation on July 1, the measure has already begun showing measurable effects, according to data from French customs authorities cited by the French Ministry of Economy. The drop in imports of low-value packages from China marks a key milestone in efforts to curb the influx of such goods, which had reached unprecedented levels by 2025. After months of discussions, technical meetings, and resistance from affected platforms, the 3-euro fee applied per product category within each shipment has achieved its intended goal: slowing down the flow of inexpensive, individually shipped items directly from China to EU consumers. The measure was designed specifically to target the business model of companies like Temu and Shein, which rely on high-volume, low-cost shipments. Until June, all packages valued under 150 euros were exempt from customs duties, giving these platforms a competitive edge over European retailers who faced VAT and tariffs from the first euro. The new system applies a fixed rate of 3 euros per product category included in a single parcel, regardless of the item's value. This means a shipment containing three different categories, such as a phone accessory, clothing, and home goods, would incur a total charge of 9 euros. This approach aims to eliminate the previous exemption, which allowed Chinese platforms to undercut local competitors by avoiding additional costs. The policy is temporary, set to remain in place until a broader reform of the EU’s customs system is completed within two years. That reform would remove the 150-euro exemption entirely, replacing it with a more comprehensive tax structure. French-based platform Joko, which analyzes transactions from around 1.5 million users, has documented the impact of the new rule. Sales volumes for Temu dropped by 50% between June and July, halving in just weeks. AliExpress saw a 37% decline, while Shein recorded a smaller loss of 15%. These figures suggest a clear shift in consumer behavior, with buyers adjusting their purchasing patterns to offset the added cost. Users who continue shopping on these platforms are spending more per order, indicating they are consolidating purchases into fewer, larger shipments to minimize the number of times they pay the 3-euro fee. In addition to volume declines, Joko noted a rise in average spending per transaction. For Temu, the average basket value increased by 30%, while AliExpress saw a similar jump of 27%. AliExpress also confirmed it began incorporating the new customs charges directly into displayed prices rather than adding them separately at checkout. This change reflects an effort to make the cost more transparent to customers, potentially reducing confusion and encouraging continued usage despite the higher price point. The response from the affected companies has been mixed. Shein chose not to comment, while Temu and AliExpress did not immediately respond. None of the three major platforms have publicly acknowledged the extent of the losses, though none have denied the official figures either. The reluctance to admit financial damage underscores the sensitivity of the situation, particularly given the platforms' global reach and market influence. Despite this, the data from customs and user analytics suggests that the policy is having a tangible effect on both supply and demand sides.