Shein to invest €500m in European hub as EU parcel charges hit profits

Shein raises US prices by up to 377% as Trump tariffs take hold
EcommerceNewsSupply Chain

Shein is investing €500m to expand its European logistics hub in Poland to counter rising EU import charges and speed up deliveries.

It said the investment would significantly expand its operations near Wroclaw, strengthening its European supply chain and allowing it to fulfil more orders from within the bloc.

The expansion will see its workforce at the facility increase to more than 10,000 employees by the end of 2026, alongside the deployment of 6,500 autonomous robots to support warehouse operations.

Shein said the investment would also enable customers in certain European markets to receive products stored at the hub within 48 hours.

Shien is facing mounting pressure from new EU charges on low-value parcels shipped from outside the bloc.

The EU introduced a €3 charge on parcels worth less than €150 in July, before adding a further €2 levy on 1 November, as it seeks to tackle what it considers unfair competition from overseas online retailers.

The measures have placed additional pressure on Chinese ecommerce giants including Shein, Temu and AliExpress, whose business models have relied heavily on shipping low-cost products directly to consumers.

Shein has also faced challenging trading conditions in Europe, with sales in the region falling sharply during the second quarter, contributing to a 67 per cent drop in net profits.

Shein global head of public affairs Leonard Lin said: “Through this investment, we are building more efficient, flexible and resilient European operations.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

EcommerceNewsSupply Chain

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

EcommerceNewsSupply Chain

Share:

Shein to invest €500m in European hub as EU parcel charges hit profits

Shein raises US prices by up to 377% as Trump tariffs take hold

Shein is investing €500m to expand its European logistics hub in Poland to counter rising EU import charges and speed up deliveries.

It said the investment would significantly expand its operations near Wroclaw, strengthening its European supply chain and allowing it to fulfil more orders from within the bloc.

The expansion will see its workforce at the facility increase to more than 10,000 employees by the end of 2026, alongside the deployment of 6,500 autonomous robots to support warehouse operations.

Shein said the investment would also enable customers in certain European markets to receive products stored at the hub within 48 hours.

Shien is facing mounting pressure from new EU charges on low-value parcels shipped from outside the bloc.

The EU introduced a €3 charge on parcels worth less than €150 in July, before adding a further €2 levy on 1 November, as it seeks to tackle what it considers unfair competition from overseas online retailers.

The measures have placed additional pressure on Chinese ecommerce giants including Shein, Temu and AliExpress, whose business models have relied heavily on shipping low-cost products directly to consumers.

Shein has also faced challenging trading conditions in Europe, with sales in the region falling sharply during the second quarter, contributing to a 67 per cent drop in net profits.

Shein global head of public affairs Leonard Lin said: “Through this investment, we are building more efficient, flexible and resilient European operations.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

Social


SUBSCRIBE TO OUR DAILY NEWSLETTER

  • This field is for validation purposes and should be left unchanged.
EcommerceNewsSupply Chain

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

RELATED STORIES

Latest Feature


Menu

Get Inside Matalan

A supply chain case study delivered to your inbox in three emails. The 3 elements Matalan changed to impact its bottom line..

Matalan Supply Chain Programme Form

  • This field is for validation purposes and should be left unchanged.



Please enter the verification code sent to your email: