Recently, the number of low-value ecommerce parcels entering the European Union from international destinations has increased drastically. Not only that, but many are being undervalued to avoid customs and may not comply with European regulations. As a result, the EU plans to implement changes to curb this growth to a more sustainable rate.
Low-Value Ecommerce Imports to the European Union Rise By 26%
According to the European Commission, the number of low-value ecommerce packages entering the European Union climbed to 5.8 billion in 2025, which is a 26% increase over the previous year.
There are a few likely reasons for this growth. First, the prices that many international platforms like Temu and Shein offer are significantly lower than those of other online destinations. As a result, if people want to buy items for less, they’ll often look internationally to do it.
Many of these platforms, such as Temu, have also invested heavily in marketing over the last few years, increasing their notoriety and reaching more potential customers.
Also, the EU’s “de minimis” customs duty exemption could have also fueled this growth, as it means that packages valued at under 150 euros (around $178) are exempt. As a result, many packages can come from international retailers to European buyers without paying customs duties.
However, this exemption has also led the European Commission to estimate that as many as 65% of small parcels entering the EU are deliberately undervalued to avoid paying customs duties.
The USA recently got rid of the country’s de minimis policy, which could have also led many of these international retailers to focus their efforts more on the European market.
The Downsides of This Growth, According to the European Commission
While this growth means people in the European Union are accessing cheaper items, there are some real downsides. First, it breeds unfair competition, as many European brands may not be able to compete price-wise with international sellers, as they need to adhere to Europe’s strict standards, which may increase costs.
Some international packages and products also adhere to these standards, but many of them don’t comply and thus could potentially be harmful or dangerous for consumers to use, as well.
Also, the high rate of packages coming in may make it harder for customs to successfully and thoroughly inspect each of these items, which could lead to more counterfeit, subpar, or dangerous products entering the European market.
Finally, the move may force domestic brands to lower their prices to compete and generate sales, which may hurt profit margins and lead to financial strain and could even cause businesses to fail.
What is the European Union Planning To Do About the Growth
As opposed to just letting this major shift happen, the European Union has decided to step in and do something about this unsustainable growth. The EU is planning to implement a 3 euro fee on low-value parcels beginning on July 1st, which is going to serve as a temporary measure before there’s an agreement to get rid of the duty exemption.
While this could help to slow the growth of these parcels coming into the EU, it may also lead to a price increase on the products, as international sellers adjust their prices to account for the additional costs.
I believe the EU needed to do something about this if they want to slow down the growth of shipments coming from international sellers. However, it remains to be seen whether this small fee is enough, or if the rate of small and low-value international packages entering the EU continues to rise in spite of the measures put in place to slow it down.
