Shein has reported a quarterly net loss as the fast-fashion e-commerce giant prepares for its long-awaited initial public offering in Hong Kong.

The Singapore-headquartered retailer recorded a net loss of $99 million during the first quarter of 2026, compared with a net profit of $395 million during the same period a year earlier. The figures were disclosed in Shein’s draft prospectus filed with the Hong Kong Stock Exchange.

The result represents a significant reversal for one of the world’s largest online fashion platforms. However, the headline loss was not caused entirely by weaker retail performance. It included a substantial non-cash accounting charge related to the changing value of shares held by existing investors.

Even after accounting for that one-off effect, Shein’s filing points to a broader challenge: its historically powerful cross-border e-commerce model is becoming more expensive to operate.

Higher import duties, slower sales growth, tighter regulatory oversight and increasing fulfilment costs are placing pressure on the company just as it attempts to convince investors that it deserves a valuation of between $40 billion and $50 billion.

Shein reports a $99 million quarterly loss

Shein’s first-quarter loss was partly driven by a $328 million fair-value charge connected to its convertible redeemable preferred shares.

These shares were issued to investors before the company’s proposed listing and can later be converted into ordinary shares. Changes in their estimated value must be recognised in Shein’s financial accounts, creating a non-cash expense.

This distinction is important. Shein did not lose $99 million purely because selling clothes became unprofitable. Nevertheless, the company’s underlying operating figures also weakened.

Shein’s operating margin fell from 3.9% in the first quarter of 2025 to 2.9% in the first quarter of 2026. Revenue growth also slowed considerably, while sales in its largest national market declined.

The results suggest that the accounting charge magnified the quarterly loss, but did not create the company’s wider commercial problems.

US revenue falls after the end of de minimis treatment

The United States has traditionally been Shein’s most important market. Its success there was supported by the de minimis import exemption, which allowed packages valued below $800 to enter the country without standard customs duties.

That model enabled Shein to send large numbers of relatively inexpensive orders directly from Chinese warehouses to individual American customers.

The removal of favourable de minimis treatment for Chinese-origin parcels in May 2025 changed the economics of this system.

According to Shein’s prospectus, products originating in China and shipped to the US through its retail or marketplace operations can now face tax rates ranging from 10% to 87.5%, depending on the product and applicable tariff treatment.

Shein said the regulatory change had adversely affected US sales, increased expenses and slowed the company’s overall growth.

US revenue declined by 14.3% year on year, falling from $2.38 billion in the first quarter of 2025 to $2.04 billion in the first quarter of 2026.

The United States accounted for 22.5% of Shein’s quarterly revenue, compared with 29.4% of its annual revenue in 2023.

Shein considers raising US prices

Shein has acknowledged that it may need to pass some of its additional import costs on to consumers.

The company said it was pursuing several measures in response to the higher duties, including increasing prices in the US market.

That response carries a significant commercial risk.

Shein’s proposition has been built around extremely low prices, a vast product catalogue and a highly responsive supply chain capable of identifying and producing emerging fashion trends quickly.

Price increases could protect margins, but they may also weaken the company’s competitive advantage. Consumers comparing Shein with Amazon, Temu, established fashion retailers or domestic marketplace sellers may become less willing to tolerate longer cross-border delivery times when the price difference becomes smaller.

The company must therefore decide how much of the additional cost it can absorb without damaging profitability and how much it can pass on without reducing conversion rates.

Europe could become Shein’s next major pressure point

The United States is not the only market making low-value e-commerce imports more expensive.

The European Union introduced a €3 customs duty on low-value e-commerce items in July 2026 as part of its attempt to address the rapid growth of inexpensive direct-to-consumer imports.

Europe generated approximately one-third of Shein’s revenue in 2025, making the region central to the company’s growth prospects.

Shein warned investors that it was still too early to measure the full effect of the European changes. However, the company said the impact could be similar to—or potentially greater than—the disruption it experienced following the US de minimis reform.

The European system may be particularly challenging because the €3 charge can apply according to the number of different customs classifications represented in a parcel.

An order containing several types of products could therefore attract multiple charges. For a business selling very inexpensive garments and accessories, a relatively small customs cost can represent a large percentage of the original product price.

This pressure is especially relevant for Shein because European consumers may be highly sensitive to increases on products that were originally marketed at ultra-low prices.

Shein expands its European warehousing strategy

Shein has already been adapting its logistics network to reduce its dependence on individual parcels shipped directly from China.

The company has expanded warehouse capacity in Wrocław, Poland, and has been moving selected high-demand products into Europe in bulk.

Storing goods inside the EU can help Shein shorten delivery times and avoid applying the new low-value parcel charge to every individual cross-border order. It may also improve the customer experience by supporting faster fulfilment and easier returns.

However, regional warehousing introduces a different set of costs and risks.

Shein must forecast demand, import inventory before it has been sold and maintain larger quantities of stock inside regional fulfilment centres. That is a major departure from the company’s original model, which relied on small production runs and direct shipping to minimise unsold inventory.

The company is therefore being pushed towards a more conventional retail infrastructure precisely when its competitive advantage has been based on avoiding many of the costs associated with conventional retail.

Annual sales rise, but profit and growth slow

Shein remained profitable over the full 2025 financial year.

The company generated net income of $2.06 billion, but that represented a decline of 38.7% from the previous year.

Annual revenue increased by 8% to $41.85 billion. Although this remains a substantial level of growth for a company of Shein’s size, it was significantly below the 20.7% revenue expansion recorded in 2024.

These figures illustrate the challenge facing the retailer.

Shein is still a global e-commerce business generating more than $40 billion in annual sales, but its growth is slowing while the cost of accessing major consumer markets is increasing.

For IPO investors, the central question will not simply be whether Shein can continue generating revenue. It will be whether the company can preserve attractive margins after tariffs, customs charges, compliance requirements, marketing costs and regional fulfilment investments are taken into account.

Shein seeks a valuation of up to $50 billion

Shein is reportedly targeting a valuation of between $40 billion and $50 billion for its Hong Kong IPO.

That would represent a considerable reduction from the $100 billion valuation associated with a private funding round in 2022. It would also be below the $66 billion valuation assigned to the company during its May 2023 fundraising round.

The lower target reflects the changing environment for global e-commerce companies.

The exceptional online growth experienced during the pandemic has moderated. Investor enthusiasm for loss-making or low-margin technology-driven businesses has also weakened, while governments are taking a more interventionist approach towards cross-border marketplaces.

Some investors may still view Shein as a highly valuable platform with global brand recognition, strong customer engagement and a sophisticated data-driven supply chain.

Others may question whether a valuation of $40 billion or more adequately reflects its shrinking margins, exposure to regulatory action and dependence on Chinese manufacturing.

Hong Kong becomes Shein’s third IPO route

Shein’s Hong Kong listing follows unsuccessful attempts to go public in New York and London.

The company initially filed for a US IPO in November 2023 but encountered political and regulatory opposition. It later pursued a London listing and obtained approval for a draft prospectus from the UK’s Financial Conduct Authority.

However, the London plan could not progress without approval from the China Securities Regulatory Commission.

Although Shein relocated its headquarters to Singapore in 2022, the company remains deeply connected to China through its supplier network and operating infrastructure. More than 90% of its 2025 net revenue came from products stored in central warehouses in China before sale.

Chinese regulators approved Shein’s proposed Hong Kong listing on July 10, 2026, clearing an important obstacle in the company’s prolonged effort to enter the public markets.

The draft prospectus does not yet disclose the final IPO size, offer price, listing date or expected proceeds.

Shein has indicated that funds raised through the offering would be used to improve technology, expand its global presence, increase brand awareness, support corporate responsibility initiatives and provide additional working capital.

Regulatory scrutiny remains a major IPO risk

Customs charges are only one part of the regulatory challenge facing Shein.

The company has faced scrutiny over working conditions in supplier factories, the environmental effects of transporting high volumes of products by air, consumer data practices, discounting methods and products sold through its marketplace.

The European Commission has also opened a formal investigation into Shein under the Digital Services Act, examining issues including the sale of illegal products and the platform’s systems for protecting consumers.

Shein has stated that it maintains a zero-tolerance policy towards labour abuses and has invested in risk assessment, compliance and user-protection systems.

For prospective investors, however, these investigations represent potential financial and reputational liabilities.

A major regulatory penalty, forced change to the platform’s interface or stricter seller-monitoring obligation could increase costs further. The possibility of different rules being introduced across the US, EU and other markets also makes long-term financial planning more difficult.

Shein’s cross-border model is being rewritten

Shein’s rise was enabled by a combination of digital demand forecasting, low-cost Chinese manufacturing, small production batches and direct international delivery.

This structure allowed the company to offer thousands of new products, respond quickly to fashion trends and sell at prices that traditional retailers found difficult to match.

The model is not disappearing, but it is being rewritten.

Major economies increasingly expect cross-border platforms to collect taxes, verify sellers, monitor product safety and contribute more towards customs enforcement. Governments are also removing exemptions that allowed low-value parcels to enter with fewer costs and administrative requirements.

As these policies spread, platforms such as Shein and Temu may need to hold more inventory locally, establish regional fulfilment networks and assume greater responsibility for the goods sold through their marketplaces.

That transition could make their operations more resilient and improve delivery performance. It could also make them more expensive and structurally similar to the established retailers they initially disrupted.

Can Shein defend its valuation?

Shein’s $99 million quarterly loss is unlikely to determine the success or failure of its IPO on its own.

The $328 million accounting charge means the headline figure does not provide a complete picture of the retailer’s underlying performance.

The more important indicators are the 14.3% decline in US revenue, the reduction in operating margin, slower annual sales growth and the company’s warning that European customs reforms could have an impact comparable to the disruption already seen in the United States.

Investors will need to decide whether these pressures are temporary consequences of a changing regulatory environment or evidence that Shein’s most profitable period has already passed.

Shein remains one of the world’s largest and most influential e-commerce businesses. It has more than $40 billion in annual revenue, an internationally recognised brand and a supply chain that transformed the fast-fashion industry.

But the company approaching Hong Kong’s public markets is no longer the hypergrowth retailer valued at $100 billion in 2022.

It is a more mature business facing higher costs, lower margins and increasingly coordinated government scrutiny.

The success of its IPO may ultimately depend on whether Shein can demonstrate that its model still works when low-value cross-border commerce is no longer treated as an exception.

The post Shein falls into the red ahead of its Hong Kong IPO appeared first on Cross-Border Magazine.

On October 27, 2025, Amazon announced a planned investment of more than €1.4 billion over the next three years (2025–2027) in the Netherlands. This marks Amazon’s most significant financial commitment to the Dutch market since its local operations launched in 2020. According to the company, the investment underlines its confidence in the Netherlands as a growth market. It reaffirms its focus on innovation, customer experience, low prices, wide selection, and support for local small and medium-sized enterprises (SMEs).

Scope and focus of the investment

The investment will support both Amazon’s retail operations in the Netherlands and its cloud business under AWS (Amazon Web Services).
Key areas of deployment include:

• Infrastructure development (logistics, warehousing, delivery points) to improve speed, convenience, and selection.
  
• Technology enhancements, including AI and cloud capabilities, to support Dutch entrepreneurs selling on Amazon’s platform.
  
• Expansion of services for third-party sellers, including logistics and marketing tools and export support.
  

Amazon Impact on Dutch SMEs and exports

The company emphasises that more than 60% of all products sold via Amazon.nl come from its selling partners.
More than 4,500 Dutch SMEs currently sell on Amazon, with nearly 90% reaching customers in over 170 countries.
Over 75% of these Dutch-seller exports go to other EU member states — mainly Germany, France, the US, the UK and Italy.

Employment and economic contribution

Amazon currently employs over 1,000 people in the Netherlands across its offices in Amsterdam and The Hague, a sorting centre in Rozenburg, and other logistics operations.
Independent research by macro-economic consultancy Keystone Strategy estimates that in 2024, Amazon’s investment in the Netherlands supported more than 2,000 indirect jobs and 900 induced jobs, and contributed more than €200 million to Dutch GDP for that year. The total cumulative contribution since 2013 exceeds €1 billion.

Strategic implications of Amazon position in the Netherlands

Despite this significant investment, Amazon still trails the local market leader, Bol.com (owned by Ahold Delhaize) in the Netherlands. Bol.com reported approximately €3.1 billion in sales in 2024 compared with Amazon’s estimated €1 billion. By ramping up investment, Amazon is clearly aiming to capture more market share, enhance its service offering (for example, next-day delivery and parcel lockers,) and strengthen its logistics and cloud footprint in the country.

Leveraging cloud and AI capabilities

The investment also signals a push into SaaS, cloud infrastructure and AI capabilities in the Netherlands via AWS. This aligns with broader industry trends of cloud and AI expansion in Europe. The Dutch market is seen as strategically crucial given its role as a logistics and tech hub in Europe.

However, this push is happening amid increasing scrutiny in the Netherlands over reliance on US-based cloud and software providers. Earlier this year, the Dutch parliament called for ending dependence on US software and cloud services.

Support for SMEs and internationalisation

By enabling Dutch SMEs to access Amazon’s global marketplace and Amazon’s cloud and logistics backing, Amazon aims to boost cross-border trade, innovation and digitalisation among local businesses. This support for SMEs aligns with Dutch national priorities for export growth and digital transformation.

In effect, Amazon is offering a dual value proposition: improving the consumer experience for Dutch customers and enhancing opportunities for Dutch businesses in local and global markets.

What this means for Amazon stakeholders

Consumers in the Netherlands can expect improved services: wider product choice, lower prices, and faster, more convenient delivery options, including pickup points and next-day delivery. Amazon’s explicit promise is to offer low prices, a wide selection of products, and faster and easier delivery options to Dutch customers.
This competitive push may also pressure local players to upgrade their logistics, delivery and price strategies.

For Dutch small and medium-sized enterprises (SMEs)

The investment opens up opportunities for Dutch SMEs to:

• Sell to a much larger customer base via Amazon’s platform.
  
• Benefit from Amazon-provided logistics solutions and marketing/export tools.
  
• Leverage AWS, cloud and AI tools to enhance their productivity, innovation and global reach.
  For many SMEs this could mean transformational growth, especially in export-oriented sectors.
  

For the Dutch economy and labour market

Amazon’s investment contributes to job creation, both directly (through employment in Amazon facilities) and indirectly (through construction, logistics, and professional services). The estimated economic contribution of over €200 million to GDP in one year, and cumulative contributions of more than €1 billion since 2013, underline the macroeconomic significance.

Policymakers may view this as a reinforcement of the Netherlands’ attractiveness for foreign direct investment in tech, logistics, and digital operations.

For Amazon’s broader European strategy

This move in the Netherlands is part of Amazon’s broader European investment strategy. The company recently announced a €1 billion investment in Belgium, along with similar expansion efforts in other markets.

 It reflects Amazon’s intent to deepen its footprint in the Euro zone, strengthen its retail and cloud operations, and position itself for longer-term growth amid intensifying competition and regulatory scrutiny.

Risks and considerations

There are several factors to monitor:

• While Amazon has announced the investment, actual execution, delivery-speed improvements, and durability of SME support will be crucial.
  
• Regulatory and policy issues: the Netherlands and the EU are increasingly focused on competition, data sovereignty, and cloud independence. Amazon’s cloud and AI push may face regulatory or public-policy headwinds.
  
• Competitive dynamics: local players like Bol.com remain strong. Amazon must deliver differentiated service to gain meaningful market share.
  
• Labour and logistic pressures: if Amazon ramps up logistics investments and delivery speed, it will face cost pressures, labour-market constraints, and sustainability challenges.
  
• Economic climate: macro-economic pressures such as inflation, supply-chain tensions and consumer-spending softness in Europe could affect the retail side of the business.

Amazon’s investment of over €1.4 billion in the Netherlands clearly signals its ambition to deepen its presence in one of Europe’s most mature e-commerce markets, enhance its cloud and AI footprint via AWS, and empower Dutch SMEs to grow in local and international markets. 

For Dutch consumers, businesses, and the economy at large, this development is significant: improved service levels, increased export opportunities, and stronger job and economic creation. At the same time, Amazon will need to navigate competitive, regulatory, and operational challenges to translate this investment into sustained growth.

The post Amazon Invests €1.4 Billion in The Netherlands appeared first on Cross-Border Magazine.

100% compliance with 24-hour response time requirements across 380+ marketplaces

Salesupply, a global provider of ecommerce customer service solutions, has launched MarketplaceCare 365, a cost-effective support service tailored specifically for marketplace sellers. The solution ensures sellers respond to customer inquiries within the timeframes required by the world’s leading marketplaces.

Strict SLAs and rising labor costs challenge marketplace sellers

Online marketplaces such as Amazon, eBay, ASOS, CDiscount, Wayfair, Zalando, and Temu require sellers to provide high-quality customer support—24/7, multilingual, and fast. Meeting these expectations has become increasingly difficult due to rising labor costs and staffing challenges, particularly during peak seasons and holidays.

MarketplaceCare 365 addresses these issues by delivering flexible, high-quality, and multilingual customer service across 380+ marketplaces in over 25 languages.

Key benefits of MarketplaceCare 365

 Guaranteed 100% SLA compliance: Salesupply currently supports over 380 marketplaces with a proven 100% SLA performance

 Year-round availability: Including holidays such as Christmas and New Year’s Eve

 Cost control: Replace fixed overhead with a variable low-cost model

 Optional A-Z claims support: Native-speaking agents can proactively contact customers to resolve and withdraw erroneous A-Z claims in 25+ languages

“Marketplaces demand 24/7, high-quality customer service. Many sellers are forced to manage this with lean teams that cannot scale for peak demand or holiday coverage. MarketplaceCare 365 ensures compliance with marketplace standards while giving sellers the flexibility they need to grow—without inflating their customer service costs,” says Hans Siebum, Managing Director at Salesupply.

MarketplaceCare 365 is available immediately!

The post Salesupply launches MarketplaceCare 365: A cost-effective customer service solution for marketplace sellers appeared first on Cross-Border Magazine.

Miravia, the online platform specializing in lifestyle, has announced the launch of its marketplace in Portugal. Following its success in Spain, Miravia completes its international expansion throughout the Iberian Peninsula to offer Portuguese consumers an alternative shopping experience and the brands and sellers already operating on the Spanish platform the possibility of exporting their products to the neighboring country.

Since its launch in Spain almost two years ago, Miravia has brought together more than 12,000 local, Spanish, and international brands and retailers, offering a total of more than 17 million products. In addition, more than 1,200 brands have opened their official stores on the platform.

A new marketplace aimed at SMEs 

Miravia has received recognition from both the Spanish consumer and the e-commerce sector. It recently won the award for Best B2C Marketplace of 2024, which was added to the award for Best New Marketplace in 2023 at the national marketplaces awards.

The expansion to Portugal is a new boost for all national and international brands and sellers operating in the marketplace, especially for small Spanish SMEs that will now have the opportunity to export their products and reach Portuguese consumers.

Miravia's portfolio includes some of the most popular international and Spanish brands, as well as young local digital firms created, in most cases, by young entrepreneurs who have their natural space in social networks and have decided to join a marketplace, in some cases for the first time.

Moravia has become an opportunity for local Spanish, and now Portuguese, SMEs to grow their business and reach a larger audience thanks to the commercial and entertainment ecosystem created within the app. To facilitate this, brands and sellers do not have to pay any registration or operational fees on Miravia; they only pay a sales commission.

Yann Fontaine, CEO of Miravia, explains that multiple media in Spain and Portugal, “we are committed to the brands and sellers selling through Miravia for their growth and success. We believe that Portugal, like Spain, is a market with a unique potential to implement our unique value proposition based on offering customers a wide range of products to cover their daily needs, especially in the lifestyle categories, and the possibility for all our brands and sellers to open their stores within the platform, connecting uniquely with customers. Our goal is to continue to offer brands and consumers a unique and inspiring experience driven by innovation and technology.”

Miravia's bet on Portugal

Miravia's platform starts operations in Portugal with more than 2,000 brands, sellers and retailers and an initial offer of 3.5 million products in the following categories: beauty, fashion, electronics, sports, home, gardening, kitchen, toys, food, as well as items for pets, mothers and babies.

Miravia in Portugal will progressively incorporate new local Spanish and international brands. Thus, the marketplace aims to become a point of reference for large brands and retailers, small Portuguese SMEs, and innovative local brands born in digital environments, with the purpose of helping them reach new audiences, boost their growth, and maximize their revenues. This new digital channel is free of additional costs and registration fees, and, as in Spain, brands and retailers will only have to pay fees for their sales.

As in Spain, Miravia in Portugal will offer an extensive range of product categories at competitive prices, supported by a wealth of offers, promotions, and discounts, different payment methods, and innovative solutions such as in-app gamification dynamics, virtual beauty trials, and affiliate programs tailored to local consumer trends.

The post Miravia launched its marketplace in Portugal appeared first on Cross-Border Magazine.

The online marketplace Bol has released several updates, such as a new advertising option that allows sellers to highlight their brand and assortment in search results. Also, changes to the partner platform and review policy have been implemented.

Bol is an online marketplace from the Netherlands. It generated revenue of 2.9 billion euros in 2023. Earlier this year, Bol launched a new payout model for partner sellers, and now sellers can get paid once or twice a month.

New looks for how sponsored products are showcased 

About half of the partner vendors have been selected to pilot the new Sponsored Products interface. Some brands are now highlighted in the search results on the website, immediately showing multiple products from that brand’s assortment. 

The update is, therefore, reminiscent of Amazon’s Sponsored Brands. The new interface will be available to all partner sellers by the end of August. According to Bol, it aims to respond more quickly to advertisers’ wants and needs with the new interface. 

In addition, the interface is more user-friendly, which makes managing and optimizing ad campaigns more efficient. Setting up campaigns has been easier, and partners will receive comprehensive reports. Vendors can use a new API for the new interface. The update will be available to all partner sellers by the end of August. 

DSA impact on Bol 

In addition, the partner platform itself has a new feature. Until now, vendors had to use external tools to keep track of their products' positions. From now on, this can be viewed in the partner platform, making it easier for them to track the effectiveness of their SEO efforts.

Bol has also changed its review policy. The Digital Services Act (DSA) was introduced across Europe, so sponsored reviews may no longer be posted on the platform. As a result, customers are prohibited from receiving compensation for posting a review.

The post Bol update: changes and new releases! appeared first on Cross-Border Magazine.

Chinese group PDD Holdings, owner of e-commerce platform Temu and Pinduoduo, posted an attributable net profit of 27.997 billion yuan (3.592 billion euros) in the first quarter of 2024, an increase of 245% compared to the profit of 8.101 billion yuan (1.039 billion euros) reported in the same period of the previous year, the group said in a statement.

The Chinese group's revenue totaled 86.812 billion yuan (€11.136 billion) in the period above, an increase of 131% compared to a year earlier.

PDD Holdings' revenue in the quarter increased by 55.8% in the online marketing and other services business to 42.456 billion yuan (€5.446 billion). Similarly, transaction services revenue increased 327%, totaling 44.355 billion yuan (€5.69 billion).

"In the first quarter, we continued our investment in key areas critical to our high-quality development strategy," said Jun Liu, vice president of finance at PDD Holdings, explaining that "instead of focusing on short-term results, we prioritize long-term value creation and remain committed to further deepening our investments in the future."

On his side, Jiazhen Zhao, co-CEO of PDD Holdings, noted that the company will focus its efforts on improving the overall consumer experience, strengthening its supply chain capabilities, and fostering a healthy platform ecosystem: "This year is critical for us to deepen the execution of our high-quality development strategy".

After presenting these results, the owners of Temu and Pinduoduo soared on Wall Street by 6% at the open.

Temu’s growth in Spain 

According to a study by Semrush, the Chinese platform is the e-commerce platform that has grown the most in Spain over the last year. Since April 2023, the number of users accessing the platform has multiplied by more than 15 times, reaching 10,872,252.

The predominant profile of Temu shoppers is mostly female, representing 59.8% of its user base. These female consumers, mainly between 25 and 34 years old with low incomes, access Temu mostly through mobile devices. 

According to Semrush, the target audience for Temu in Spain is a woman between 25 and 34 years old, with a low income, and who does not have a university degree. This profile provides a clear view of the type of consumer who is attracted to the offer and shopping experience that Temu provides, highlighting the relevance of adapting strategies to meet the preferences and needs of this specific segment. 

The post Temu's parent company, PDD Holdings, increased its profits by 245% during the 2024 Q1 appeared first on Cross-Border Magazine.

Over 50% of Germany's online sales came from marketplaces, and 55% of all online sales in that country were carried out on smartphones, for a total of 47 billion euros in sales.

The Online Monitor 2024, a report from Handelsverband Deutschland (HDE) provided this data showing how the German e-commerce market is predominantly a marketplace/mobile market. And the market is huge and still growing: Germany will reach 85 billion euros by the end of the year, a one percent increase compared to the year before.

“Online trading was the sales boost for retail in Germany for many years. However, the high growth rates during the coronavirus years make it difficult for the industry to keep raising the bar. We are therefore, experiencing further normalization in online sales this year”, said Stephan Tromp, deputy managing director at HDE.

Marketplace sales keep growing 

According to the Online Monitor,  2023 showed a 10% increase in marketplace turnover, and also earlier this year HDE already called on German politics to be stricter towards cheap marketplaces from China. 

The association is now underlining that sentiment again and fears that fair competition is at risk ‘Anyone who offers goods in this country must adhere to all rules.’ claimed the organization. 

“Regarding Temu, everyone is talking about the fact that a significant proportion of the goods ordered there do not meet our EU guidelines for pricing, website design, product safety, environmental protection, or taxes—and do not comply with customs law. This cannot be a permanent situation. Anyone who offers goods in this country must adhere to all the rules. The authorities have to enforce this.”

The association has also included a forecast for German e-commerce for the current year. It expects a sales growth of 3.4 percent compared to 2023. The online share of German retail is expected to reach 13.1 percent this year.

Temu answers

Following the release of this content, Temu reached out to Cross Border Magazine with an official statement:

Temu is committed to complying fully with the laws and regulations in all the markets where we operate. Since expanding into the EU last year, we have actively incorporated feedback to enhance our systems and processes, ensuring they meet consumer needs effectively.

Product Quality and Safety: 

We ensure the safety and compliance of our products through rigorous seller vetting, continuous monitoring, and a responsive feedback system. Our goal is to provide a safe and affordable shopping experience, and we encourage customers to report any concerns.

Pricing Practices:  

Our pricing strategy is informed by our direct-from-factory model. We reference the suggested retail prices from suppliers who traditionally serve physical stores, highlighting the savings our customers enjoy. We diligently verify all pricing information for accuracy and transparency.

App Design:  

Our app features elements like flash sales, competitions, prize draws, and games, drawing inspiration from traditional retail practices to enhance the online shopping experience. These features not only provide enjoyment but also offer customers additional discounts, enhancing the value of our competitive prices.

Environmental Impact:  

Our direct-from-factory model reduces environmental impact by cutting out unnecessary supply chain steps. We ship products only when purchased, directly from the factory to the consumer, reducing emissions and preventing the overproduction and waste typical in conventional retail. As part of our commitment to sustainability, we have partnered with Trees for the Future to plant over 8 million trees, capturing an estimated 400,000 metric tons of CO2 over two decades.

Taxes and Customs Law:  

Temu strictly complies with EU customs and tax regulations. We do not manipulate parcel splitting to evade customs; when it occurs, it is due to logistical needs like size and weight limits or specific regulatory requirements for separate shipping of certain items. Our shipping policy emphasizes efficiency and timeliness, optimizing package consolidation and cargo space utilization to ensure fast and reliable international delivery.

The post Germany's online sales are marketplace and mobile appeared first on Cross-Border Magazine.

Innova Digital Export has launched EMA, an Expert Marketplace Advisor agent that claims to help you find the ideal marketplace by differentiating between products, geographic areas, and target audiences, among other features.

Innova has enriched EMA with its database available in MarketsPlaza, and together with the complementary hand of artificial intelligence through ChatGPT-4, it has been possible to develop a model capable of differentiating among the thousands of marketplaces located around the world and offering personalized recommendations to those companies that want to expand their horizons.

The model studies the product, the category or sector, the desired target audience, the geographical area, and the needs of users to, after a complete search, propose the TOP 5 ideal marketplaces for the sale of these products or services in the chosen destination (plus a list of other marketplaces that may be of interest). 

EMA provides a full marketplace advisory 

But EMA goes further and even provides additional information of interest of those recommended marketplaces: rates, commissions, logistics. 

And, if the target market is China, get ready for a shower of very interesting information! It provides first-hand information on marketplaces as interesting as unknown to us as TMall, JD or Putaojiuwang, among others, thanks to the native Chinese team of the developer company.  

This solution represents a step forward in digital export and how to use artificial intelligence to help companies that want to launch abroad but need to know the wide possibilities they have in each destination, EMA will be the guide to start this path.

We leave you the website of its creators, Innova Digital Export, so you can check it out and see if it's a good fit for your business. 

The post Meet EMA, an AI-Expert Marketplace Advisor appeared first on Cross-Border Magazine.

TikTok plans to launch Trendy Beat in the United States early next month. To pull it off, the shopping section within the app will showcase a product line of its own. This will allow the company to directly challenge Amazon, Shein, Temu, and other major e-commerce platforms.

The new online store will sell items such as toys and kitchen appliances, among other items, in the app. It will also have an e-commerce tab in TikTok Shop. This function allows companies, sellers, and influencers to sell their products through the social network.

Over the past few weeks, users in the United Kingdom have been testing this new in-app purchase feature within the TikTok app. This tool, known internally as Project S, has the official name Trendy Beat. 

TikTok Trendy Beat will bet on private-label products 

In this way, TikTok would be on its way to creating its own range of private-label products in the style of Amazon's Amazon Essentials. It has a system of manufacturing and promoting its range of best-selling items. All these items, initially, would be shipped from China.

For the time being, this tab is in the testing phase. The company's goal is to improve the experience of its community.

TikTok is changing its e-commerce strategy. It is still in the early stages in the United States. The company has been testing TikTok Shop since last November, which has yet to be as successful as it had hoped. This is probably why the platform waited to test Trendy Beat in the U.S. market.

This social network has 1.052 million monthly active users and was one of the most downloaded apps in 2022 (2 billion downloads in 2020, and in Q3 2022, it surpassed 3 billion). Figures that are noticed by brands that are beginning to use this tool as a new sales channel.

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Shein continues the global expansion of its marketplace initiative. Shein marketplace will now arrive in Spain. The Chinese company has already incorporated well-known brands such as Skechers and Lansinoh in its marketplace in the United States and Brazil, and will soon launch the same model in Spain before the end of this year. 

After the first experiences in these two markets, the company will now launch its marketplace in Mexico and, subsequently, in Germany, Spain, France, and Italy, as the group has advanced in a statement.

The company has also announced the launch of a new global seller empowerment program, 'AcceleraShein,' which offers a holistic system of support to all sellers who join the platform, including training and skills enhancement, benefits, and incentives to help sellers achieve their business goals. 

Specifically, Shein explained, incentives and mentoring will be offered to 100,000 outstanding, high-potential sellers on the marketplace to reach annual sales milestones of up to $100,000 within three years. In addition, 10,000 sellers will be selected for a program enabling them to reach annual sales of $1 million within three years.

"At Shein, we believe that integrating our marketplace has enabled us to meet the ever-evolving demands of our global customers while delivering tangible benefits to our valued partners and seller communities," said Molly Miao, chief operating officer of Shein. "Our commitment to supporting small businesses around the world through our platform is a cornerstone of our mission to empower entrepreneurs and drive innovation across the industry," Miao said.

In addition to benefiting from Shein's processes, such as fast returns and flexible payment methods, sellers will also have access to customized incentive programs, including platform fee waivers and commission waivers for a limited period. Similarly, Shein will provide them with access to performance dashboards that will enable them to respond to market movements in an agile and accurate manner.

Shein marketplace will face Temu in Europe

The e-commerce giants (Amazon, Shein, Aliexpress) will have to face another titan that is entering the global e-commerce battlefield this year: Temu. 

The owners of Pinduoduo, one of the most notorious e-commerce companies in China, debuted a platform called Temu in the United States in September 2022. Its app became the most downloaded shopping app on October 17, and following its success in the U.S., it has announced its arrival in Europe.

The South China Morning Post has confirmed that Temu is launching in six countries in the old continent. Specifically, these are France, Germany, Italy, the Netherlands, the United Kingdom, and Spain. 

With this news, the e-commerce company strengthens its position in the international market, positioning itself in 10 major territories since it is also present in Canada, Australia, and New Zealand.

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