Temu, Shein cost Germany €2.4B
- Germany’s retail lobby HDE said on April 23 that Temu and Shein now send 460,000 parcels a day into Germany, draining €2.4 billion yearly. - The study’s sharper claim is broader damage: about €5 billion with spillovers, 42,000 jobs at risk, and roughly €420 million less tax revenue. - Uruguay’s new 22% VAT shows how fast policy can erase ultra-cheap import advantages for cross-border marketplaces.
Cheap cross-border e-commerce is running into politics. That is the real story here. Germany’s retail federation HDE says Temu and Shein are no longer just annoying local merchants — they are now large enough to strip €2.4 billion a year from German value creation, with 460,000 parcels arriving every day. And on May 1, Uruguay started taxing many foreign online purchases at 22%, a reminder that governments can change the math on bargain shopping almost overnight. (einzelhandel.de) ### What actually happened in Germany? HDE published a study on April 23 saying Temu and Shein together send 460,000 parcels a day into Germany. The group says that volume reflects an uneven playing field — especially around product sa(einzelhandel.de)ed for the German economy. (einzelhandel.de) ### Why is €2.4 billion the number to watch? Because it is not just “German stores sold less stuff.” The claim is about value added — the income and economic activity that would have stayed in Germany through retail margins, logistics, (einzelhandel.de)s this less about one retail niche and more about how much domestic commerce is being hollowed out by direct-import platforms. (dvz-international.com) ### Why are Temu and Shein so hard to compete with? Their model is built around tiny parcels, direct shipping, and extreme price compression. Basically, they turn distance into something the shopper barely notices. But local retailers still have to fund storefronts, ret(dvz-international.com)bvious costs, the local competitor is playing a different game entirely. HDE’s argument is that the problem is structural, not temporary. (einzelhandel.de) ### Is Europe already moving against that model? Yes — and this is where the German story gets bigger. The EU has already moved toward removing the €150 customs-duty relief threshold for e-commerce goods, a direct response to the flood(einzelhandel.de)and Shein are not named in every rule, but they are clearly part of the target. (taxation-customs.ec.europa.eu) ### What did Uruguay do? Uruguay’s move is simpler and more immediate. Starting May 1, it began applying 22% VAT to foreign online purchases made under its franquicia regime — the allowance that had let certain personal imports come in tax-favored. The notable (taxation-customs.ec.europa.eu)ut it is also a signal about trade preference and enforcement priorities. (riotimesonline.com) ### Why does that matter beyond Uruguay? Because it shows how fragile the “always cheaper” promise really is. Add VAT, customs fees, tighter inspections, or returns friction, and the price gap narrows fast. Once that happens, shoppers start valuing boring things again — delivery certainty, easier refunds, tru(riotimesonline.com)s huge until policy starts filling it in. (riotimesonline.com) ### So what is the real shift here? The shift is from platform growth to platform scrutiny. For years, the story was consumer adoption — more downloads, more orders, more parcels. Now the story is whether governments will let that scale keep compounding under legacy import rules. Germany’s study gives politic(riotimesonline.com) like. (einzelhandel.de) ### Bottom line? Temu and Shein still win on headline price. But the fight is moving away from the checkout page and into tax codes, customs systems, and product-rule enforcement. That is where ultra-cheap cross-border commerce can get expensive very quickly.
