Yesterday the EU changed ecommerce.
From July 1, every parcel under 150 euros entering the EU pays a 3 euro customs duty. Per item type, not per parcel. Order a shirt and a watch from the same platform and that is two charges.
Last year 5.9 billion of these parcels entered duty free. Around 12 million a day. You know the platforms.
For years European retailers paid duties, VAT, compliance, rent, wages. The parcels paid nothing. That was the game. The game just ended. And this is the soft version. In 2028 the flat fee becomes full tariffs by product category.
I work with e-commerce busiensses across Europe. My advice this week is the same as always, just louder. You will never out-cheap a factory shipping direct. Compete where they cannot follow.
The 3 euros will not save anyone on its own. The direction might.
Does this level the field, or just raise prices for everyone?