Chinese online platforms such as Temu and Shein are rapidly reshaping Europe’s trade and logistics structures. With heavy investment in their own fulfilment and distribution centres, they are establishing local delivery networks that are forcing traditional parcel services and retailers to rethink their strategies. This is the conclusion of a new analysis by SKR AG.
“Temu and Shein are building in one year what established providers have taken years to achieve,” says Rico Back, Managing Partner of SKR AG. „Speed of delivery, cost control and customer data are their key levers – the new logic is ‘local-to-local’ rather than cross-border. This is noticeably altering the balance of power along the supply chain.”
Customs policy shift forces change in strategy
This dynamic is being driven by new customs policies in the US and the EU. The US government abolished duty-free shipping for goods worth less than 800 US dollars on 29 August 2025. In the EU, the current exemption threshold of 150 euros is to be scrapped no later than 1 March 2028.
According to the SKR analysis, what was intended to put an end to cheap imports has turned out to be a catalyst for professionalisation. “The platforms no longer import millions of individual parcels but entire containers, clearing customs centrally and distributing goods from European transshipment hubs,” explains Back. „In this way, they adapt to the new regulatory hurdles, cut costs and delivery times, and retain control over customer data and the supply chain.”
Fulfilment networks built at record pace
Over the past twelve months, Temu and Shein have reportedly expanded their European capacities massively. Temu now operates warehouses in Germany, France, Spain, Italy, the Netherlands and Austria. Shein has established centres in Belgium, Frankfurt, Spain, Italy, Ireland and Poland. Their goals: faster delivery times, lower shipping costs, efficient customs clearance and local returns management.
“We are witnessing a new generation of global platform operators creating their own logistics ecosystems in Europe,” says Back. “This is generating new volume flows – but the price pressure on the last mile is not easing.”
Parcel services and retailers under strain
Delivery to the end customer accounts for over 50 per cent of the total cost of a shipment. Platforms expect extremely low delivery prices, especially for goods in the low-price segment. When parcel services take on these shipments to maintain stable volumes, they can come under pressure. This is because margins are stagnating. According to the CEP study 2025 by the Parcel and Express Logistics Association (BPEX), German B2C volumes grew by 5.5 per cent in 2024, while the more profitable B2B volumes fell by 1.6 per cent. Inflation-adjusted revenue per shipment has fallen below 2014 levels, with higher costs hardly being passed on.
To benefit more from online demand, many service providers are responding with their own fulfilment services. But Back also sees risks: “Fulfilment is no guarantee of profitability – it is capital-intensive and requires high capacity utilisation. Those who do not develop fulfilment solutions with careful strategic planning and fail to digitally integrate processes, space and transport will burn money instead of earning it.”
Competition is also intensifying among retailers. “Those who are neither cheap nor special will be crushed,” says Back. “We are seeing retailers building up low-cost own brands, launching new concepts or focusing uncompromisingly on premium, quality and service. In any case, highly efficient logistics are decisive for competitiveness.”
Europe’s strategic challenge
SKR AG points to the consequences of increasing platform concentration: “If a significant proportion of shipment volumes is controlled by a few global platforms, logistics service providers will lose their bargaining power,” says Back. “Europe should not become a pure sales market, but should keep value creation, jobs and data in its own hands. Strategic action is needed: supply chains must be diversified, partnerships with clear rules established, operational efficiency and scaling increased in a targeted manner, and innovation and differentiation accelerated.”
