Chinese online platforms like Temu and Shein are rapidly transforming European trade and logistics structures. With massive investments in their own fulfillment and distribution centers, they are establishing local delivery networks that force traditional parcel services and retailers to rethink. This is the conclusion of a current analysis by the independent consulting firm SKR AG, Lucerne, which was released on November 4.
“Temu and Shein are building in one year what established providers took years to build,” said Rico Back, Managing Partner of SKR AG. “Delivery speed, cost control, and access to customer data are their levers – the new logic is: Local-to-Local instead of Cross-Border. This makes the power in the supply chain shift noticeably.”
Customs pivot forces a strategic shift
This dynamic is being fueled by the new customs policies of the USA and the EU. The US government has scrapped the duty-free for goods shipments under 800 US dollars as of August 29, 2025. In the EU, the previously applicable exemption of 150 euros is to be removed no later
than March 1, 2028.
What should end cheap imports, according to SKR analysis, proves to be a catalyst for professionalization.
„The platforms are no longer importing millions of individual packages, but whole containers, clear customs centrally and distribute from European distribution hubs,“ Back explained. “In this way they adapt to the new regulatory hurdles, reduce costs and delivery times, and retain control over customer data and the supply chain.”
Fulfillment networks built at record speed
In the past twelve months, Temu and Shein have massively expanded their European capacities, according to reports. Temu now operates warehouse locations in Germany, France, Spain, Italy, the Netherlands and Austria. The China-founded company Temu states on its website that the organizational name is Whaleco Technology Limited and that its corporate address is in Dublin, Ireland.
Shein has centers in Belgium, Frankfurt, Spain, Italy, Ireland and Poland. The aim: faster delivery times, lower shipping costs, efficient customs clearance, and local returns management. The company, also founded in China, moved its headquarters to Singapore in the early 2020s.
„We
see a new generation of global platform operators that are creating their own logistics ecosystems in Europe,“ Back said. “That creates new volume flows – the price pressure on the last mile will, however, not be any less.”
Paketdienste und Handel unter Druck
Delivery to the end customer accounts for over 50 percent of the total cost of a shipment. Platforms expect extremely low delivery prices, especially for goods in the cheap price segment. If parcel services take on these shipments to keep volume stable, they can come under pressure. For the margins are stagnating. According to the 2025 KEP study by the Federal Association of Parcel and Express Logistics e. V. (BPEX), in 2024 Germany’s B2C volumes grew by 5.5 percent, while the more profitable B2B volumes fell by 1.6 percent. The inflation-adjusted revenue per shipment has fallen below the 2014 level — higher costs could hardly be passed on.
To profit more from online demand, many service providers are responding with their own fulfillment offerings. But Back also sees risks: “Fulfillment
is not a guarantee of profitability – it is capital-intensive and requires high utilization. Whoever does not think through the setup of fulfillment solutions strategically and does not digitally integrate processes, spaces and transports, will burn money instead of earning it.”
Competition is also intensifying for retailers.
„He who is neither cheap nor distinctive will be ground down,“ Back said. “We are seeing retailers build inexpensive own brands, launch new concepts, or uncompromisingly pursue premium, quality, and service. In any case, highly efficient logistics will determine competitiveness.”
Europe’s strategic challenge
SKR AG points to the consequences of increasing platform concentration: „If a substantial portion of shipment volumes is controlled by a few global platforms, logistics service providers lose their bargaining power,” Back said. “Europe should not become a pure sales market, but should also keep value creation, jobs and data in its own hands. Strategic action is required: supply chains must be diversified, partnerships with clear rules of the game established, operating efficiency and scale increased with purpose, and innovation and differentiation accelerated.”
