Since 1 July, the EU has levied a €3 customs duty on parcels worth under €150 and the measure is already biting as imports, especially from China, have slumped by 30% to 40%.
Some reports say that is due to the fact that they use warehouses now as some others have already says, though I couldn’t find any detailed numbers about it.
The business model of these platforms may change. Instead of just shipping a cheap item directly to the consumer, the winning formula is now ocean freight + customs clearance + warehousing + local delivery.
What does not change is the economics behind the supply chain regarding environmental and social issues. Unsold items in these warehouses will likely go to waste as it is too expensive to send them back, and the working conditions remain at the same low level (at best).
For example, European consumer watchdogs have frequently found systemic failures in product compliance on TEMU and Shein including multiple high-severity risks such as choking hazards due to small detachable parts in children’s products, overheated USB chargers with insufficient insulation and fire hazards, and similar product failures representing severe risks to consumer health.
While yes, it doesn’t solve all problems with cheap Chinese, it makes the situation way better because on EU soil enforcement is possible, in China it isn’t.
Some reports say that is due to the fact that they use warehouses now as some others have already says, though I couldn’t find any detailed numbers about it.
The business model of these platforms may change. Instead of just shipping a cheap item directly to the consumer, the winning formula is now ocean freight + customs clearance + warehousing + local delivery.
What does not change is the economics behind the supply chain regarding environmental and social issues. Unsold items in these warehouses will likely go to waste as it is too expensive to send them back, and the working conditions remain at the same low level (at best).
For example, European consumer watchdogs have frequently found systemic failures in product compliance on TEMU and Shein including multiple high-severity risks such as choking hazards due to small detachable parts in children’s products, overheated USB chargers with insufficient insulation and fire hazards, and similar product failures representing severe risks to consumer health.
Labour conditions in supply chains are devastating and far below any Western standards. “If there are 31 days in a month, I will work 31 days,” one worker told in a report on Chinese fast-fashion company Shein.
There are a lot of reports like these.
So the logistics may change, but the underlying exploitative structure of these platforms’ business model does not.
While yes, it doesn’t solve all problems with cheap Chinese, it makes the situation way better because on EU soil enforcement is possible, in China it isn’t.