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.

Czech beauty retailer Notino generated €1.76 billion in revenue during its latest financial year, reinforcing its position as one of Europe’s most successful cross-border e-commerce businesses.

The Brno-based company closed fiscal year 2025, covering May 2025 to April 2026, with revenue growth of 11.5% year on year. Notino now serves more than 40 million customers across 27 European markets, supported by a combination of localized online stores, mobile commerce, physical retail and beauty-service partnerships.

Although growth slowed during the Black Friday and Christmas shopping period, the company reported a significant acceleration in early 2026. Revenue growth reached 27% during the opening months of the calendar year, suggesting that the retailer entered its new financial period with renewed momentum.

The results demonstrate how a retailer originating in Central Europe can build a large cross-border business by combining regional localization with centralized technology, logistics and brand management.

Poland remains Notino’s largest European market

Poland generated more than 15% of Notino’s total revenue, making it the company’s largest national market.

The Czech Republic, where Notino is headquartered, accounted for approximately 12%, while Italy contributed 9%. Romania represented a further 7% of annual revenue.

The geographical distribution of its sales highlights the genuinely cross-border nature of Notino’s business. Rather than depending heavily on its domestic market, the retailer has built substantial operations across Central, Eastern, Southern and Western Europe.

Croatia and Lithuania were the company’s fastest-growing markets during the financial year, with revenue in both countries rising by more than 25%.

These results also illustrate the opportunity available in smaller European markets. While Germany, France, Italy and Spain are often considered the primary destinations for international e-commerce expansion, markets in Central and Eastern Europe can offer strong growth where competition, customer acquisition costs and online retail penetration differ from those in the continent’s largest economies.

Revenue has more than doubled in four years

Notino’s latest performance forms part of a much longer period of rapid expansion.

The company generated approximately €737 million in revenue in 2021. Four years later, annual revenue had increased by more than €1 billion to reach €1.76 billion.

In 2022, the company reported turnover of more than €1.03 billion, representing year-on-year growth of 32%. At that stage, Notino said customers were purchasing the equivalent of 3.5 products every second.

Fiscal year 2024 revenue subsequently reached approximately €1.58 billion, up 18% year on year. The latest €1.76 billion result therefore represents continued double-digit expansion, although at a more moderate annual rate than in some previous periods.

Notino nevertheless said it continued to grow faster than the wider European e-commerce market while maintaining a sufficiently strong financial position to keep investing in its infrastructure and customer experience.

Four in ten Notino orders now come through its app

Mobile commerce has become a central element of Notino’s customer-retention and sales strategy.

Approximately four out of every ten orders are now placed through the Notino mobile app. The company has invested in simplifying the purchasing process, improving digital services, increasing personalization and introducing a loyalty program designed to encourage repeat purchases.

The proportion of app-based orders is particularly significant for the beauty sector, where frequent purchases, product discovery, personalized recommendations and loyalty incentives can encourage customers to return regularly.

An app can also provide retailers with a more direct relationship with customers than conventional web traffic. It reduces dependence on search engines, marketplaces and paid advertising channels while creating additional opportunities for personalized offers, product reminders and loyalty rewards.

Notino’s loyalty program was initially introduced in the Czech Republic, Slovakia and Hungary. The retailer plans to refine the program using customer feedback before expanding it gradually into additional European markets.

This controlled approach reflects one of the central challenges of cross-border e-commerce: a program that performs well in one market may need to be adapted to different customer expectations, pricing environments and purchasing habits elsewhere.

Physical stores become an important growth channel

Despite its origins as an online retailer, Notino is increasingly developing an omnichannel model.

The company currently operates 27 physical stores across eight European countries. Revenue generated through those stores increased by almost 30% year on year, substantially faster than the company’s overall annual growth rate.

Notino opened its first physical store in Croatia during the latest financial year and plans to open its first Slovenian store in Ljubljana in autumn 2026.

The expansion demonstrates that physical retail can complement rather than replace an e-commerce-led strategy.

Beauty products can be difficult to evaluate entirely online. Fragrance, makeup and skincare customers may want to test products, receive advice or compare different options in person before purchasing. Stores can therefore support product discovery and build trust, while the online platform provides a broader range, convenient delivery and repeat-order functionality.

Physical locations can also serve as local brand-building tools in markets where a retailer is less established. They give customers a visible point of contact while strengthening the credibility of the broader online operation.

Notino is building a broader beauty ecosystem

The retailer’s strategy now extends beyond selling physical products.

Through the Notino Partner platform, customers can book appointments with participating beauty salons. The service connects more than 8,000 salons with customers in five European countries and processed approximately 1.5 million bookings during the latest financial year.

Notino plans to introduce the service in Croatia and Austria during 2026.

The platform gives the company an opportunity to become involved in a wider portion of the customer journey. Instead of interacting with consumers only when they purchase cosmetics, Notino can also participate when they book hair, skincare or other beauty services.

This model can potentially create a reinforcing ecosystem. Customers discover products through the website or app, visit stores to test them and use the same brand to access related professional services.

For cross-border retailers, this broader ecosystem approach can provide an advantage over competitors focused exclusively on product transactions.

New leadership structure supports European expansion

Notino has also reorganized its senior leadership as the company prepares for its next stage of growth.

After more than six years leading the business, Zbyněk Kocián transferred management responsibility to three co-CEOs: Bartosz Kliś, Lukáš Havlásek and Jakub Šedý.

Responsibilities have been divided across three main areas of the business. The company believes that the structure will accelerate decision-making and allow it to manage an increasingly complex European operation more effectively.

Šedý oversees areas including finance, legal affairs, human resources, facilities, logistics and strategy. He said Notino had maintained healthy profitability, increased absolute EBITDA, improved working-capital efficiency and reduced net debt, although the latest figures remained subject to final audit at the time of his statement.

According to Šedý, Notino recorded growth of more than 20% in every month from February 2026 onwards.

The operational changes are intended to create a more agile organization capable of continuing to invest in technology, logistics, customer experience and talent while preserving financial discipline.

Logistics and localization remain central to the model

Notino’s growth provides a useful example of the infrastructure required to scale a cross-border retail business across Europe.

Operating in 27 markets requires more than translating a website. Retailers must manage different languages, currencies, payment preferences, delivery expectations, product regulations, promotional calendars and customer-service requirements.

Notino says it operates in 27 countries and works across 22 languages. Its workforce numbers more than 2,800 employees, according to the company’s careers information.

The company combines these local market capabilities with centralized investment in areas such as technology, inventory, logistics and digital customer experience.

This balance is important. Excessive centralization can produce a customer experience that feels disconnected from individual markets, while excessive decentralization can duplicate costs and create operational complexity.

Notino’s scale suggests that it has been able to build a common European retail platform while maintaining sufficient local adaptation to compete in very different national markets.

What Notino’s results mean for European e-commerce

Notino’s €1.76 billion revenue result offers several lessons for retailers pursuing international growth.

First, successful cross-border expansion need not begin in Europe’s largest markets. Notino grew from the Czech Republic and made Poland its largest revenue source, while some of its fastest growth is now coming from Croatia and Lithuania.

Second, localization must extend beyond language. Mobile behavior, loyalty schemes, delivery options, physical retail and beauty-service partnerships all need to reflect how customers shop in each country.

Third, omnichannel retail can strengthen an online-first business. Notino’s store revenue grew by almost 30%, indicating that physical locations are becoming a meaningful contributor rather than a secondary brand exercise.

Finally, direct customer relationships are becoming increasingly valuable. With 40% of orders coming through its app, Notino is reducing its dependence on external discovery and acquisition channels while creating more opportunities for repeat purchases and personalized engagement.

Notino prepares for its next European growth phase

Notino enters fiscal year 2026 with a larger customer base, a new leadership structure and further physical and digital expansion planned across Europe.

The company’s annual growth rate of 11.5% is lower than the exceptional increases recorded in some earlier years. However, the acceleration to 27% growth during the first months of 2026 indicates that momentum may be strengthening again.

Its progress also shows that European e-commerce growth is increasingly being driven by retailers capable of combining digital scale with local market execution.

Notino is no longer simply a Czech online perfume retailer selling internationally. It has developed into a multi-market European beauty platform incorporating e-commerce, mobile shopping, stores, loyalty services and salon bookings.

The next challenge will be maintaining that local relevance and operational efficiency as the business grows larger and competition in European beauty retail intensifies.

The post Notino reaches €1.76 billion as European cross-border growth accelerates appeared first on Cross-Border Magazine.

UK fintech company Kord has raised £6.4 million in Series A funding to expand its platform for customer onboarding, regulatory compliance and payment processing.

The round was led by Guinness Ventures, with participation from Beringea, SFC Capital and angel investors. The investment brings Kord’s total funding to approximately £9 million since the company's founding in 2020.

Kord plans to use the new capital to expand its team, accelerate product development and attract more customers across the property, legal and financial-services sectors.

The company is addressing a persistent problem in regulated industries: businesses often rely on several disconnected systems to verify customers, conduct anti-money-laundering checks, manage documents and process payments. Kord aims to bring those processes together within one platform.

What Kord does

Kord is a London-based fintech infrastructure company founded by CEO James Owusu. It operates as the business-to-business brand of Checkboard Limited.

Its platform is designed for regulated organizations such as estate agents, law firms, conveyancers, lenders and brokers.

Kord combines several services that companies would traditionally obtain from different providers, including:

• Digital onboarding
• Identity verification
• Know-your-customer checks
• Anti-money-laundering screening
• Sanctions monitoring
• Source-of-funds verification
• Electronic signatures
• Client-money accounts
• Payment collection
• Compliance reporting

The company’s main objective is to integrate customer identity, compliance information, and payment activity into a single workflow.

This can reduce duplicated administration and provide businesses with a clearer record of who the customer is, where the funds came from and how the transaction was processed.

Why Kord raised £6.4 million

Kord intends to use the Series A funding to strengthen its technology and expand across regulated industries. Many companies still use one provider for identity verification, another for compliance checks, a separate platform for documents and an external payment service.

This fragmented approach can create delays, increase costs and make oversight more difficult. Customers may also be required to submit the same information several times as they move between estate agents, mortgage providers, conveyancers and law firms.

Kord wants to replace this fragmented process with a more coordinated digital transaction system. Rather than offering only an identity-verification tool, the company is developing infrastructure that connects onboarding, compliance decisions and the movement of money.

Connecting compliance and payments

One of Kord’s central ideas is that customer identity and payment activity should not be handled separately. A business may verify a customer successfully during onboarding but use a different platform to receive or distribute funds.

When those systems are disconnected, it can be difficult to maintain a complete view of the transaction. Kord allows businesses to collect customer information, verify identity documents, complete compliance checks, review the source of funds, and manage payments within the same environment. 

The company also provides digital wallets and client-money accounts for regulated organizations. This integrated model is intended to create a stronger audit trail and reduce manual work. It may also help businesses identify inconsistencies between the person completing the onboarding process and the individual or organization sending the money.

Responding to identity fraud

Fraud prevention is an important part of Kord’s proposition.

Generative AI has made it easier to produce manipulated documents, false images and convincing digital identities. Regulated companies therefore need to compare customer information against multiple data sources.

Kord says its API-based platform helps businesses verify identity information and detect suspicious discrepancies.

The company describes its payment infrastructure as a closed-loop environment in which identity, compliance data and payment activity remain connected.

This approach is designed to reduce risks such as impersonation, payment diversion and account substitution during high-value transactions.

For regulated businesses, the ability to connect a verified identity directly to the movement of money could become increasingly valuable as digital fraud becomes more sophisticated.

Property transactions are a key market

The property sector is one of Kord’s main target markets. Buying or selling a property involves several parties, including buyers, sellers, estate agents, lenders, solicitors and conveyancers.

Different organizations may need to complete their own identity, compliance and source-of-funds checks. This can lead to duplication and longer transaction times. Kord wants businesses to complete identity verification, anti-money-laundering screening, document collection and payments through a more coordinated system.

Reducing administrative friction could help transactions move more quickly and lower the risk of delays caused by missing or repeated documentation. However, Kord cannot remove every cause of failed property transactions. Financing problems, broken chains, survey findings and changing customer circumstances also play important roles.

Its value lies in simplifying the compliance and payment stages.

Supporting law firms and conveyancers

Law firms and conveyancers are another important market segment because they frequently handle large sums of client money. These businesses must verify customer identities, screen for sanctions, establish the source of funds and maintain records of the checks they complete.

Kord combines these compliance functions with payment processing and client-money accounts. The platform is designed to create a clear record of how funds were received, held and transferred.

This is important because compliance involves more than completing a check. A regulated company may need to demonstrate which documents were reviewed, when the review took place, which risks were identified and why a transaction was approved. Kord aims to centralize that information within an audit-ready record.

Investor interest in fintech infrastructure

Kord’s funding reflects wider investor interest in fintech companies that provide infrastructure to regulated industries.

Investment is increasingly moving beyond consumer banking applications toward business-to-business services such as:

• Identity verification
• Regulatory technology
• Fraud prevention
• Payment infrastructure
• Client-money management
• Transaction monitoring

These services are becoming more important as traditionally paper-based sectors adopt digital processes.

Property and legal services still rely heavily on emails, PDF documents, manual checks, bank transfers and disconnected software. Kord is betting that companies will increasingly prefer integrated platforms instead of purchasing multiple separate tools.

A modular platform

Kord describes its technology as modular, allowing customers to adopt individual services or combine several functions. A business could use Kord only for identity verification or source-of-funds checks while retaining its existing payment platform.

Another customer could use the full system for onboarding, compliance, client accounts and payments. This flexibility may help Kord serve industries with different requirements.

An estate agent may prioritize identity checks and source-of-funds verification, while a law firm may require detailed compliance records and client-money services. Kord also offers API-based integration, allowing its technology to connect with existing customer management, accounting, and case management systems.

What comes next for Kord?

Following the Series A round, Kord will focus on product development, recruitment and customer acquisition. Its main challenge will be proving that the platform can scale across different regulated industries while remaining simple to use.

Integration will also be critical. Law firms, financial-services companies and property businesses already depend on specialist software. Kord’s ability to connect with those systems could determine how quickly customers adopt its platform.

The company is expanding at a time when regulated businesses face two competing pressures. Customers expect faster and more convenient digital experiences, while regulators require stronger identity checks, fraud controls and record-keeping.

Kord is attempting to meet both demands by building compliance directly into the transaction process.

Building trust into digital transactions

Kord’s £6.4 million Series A is ultimately an investment in digital trust infrastructure.

The company is not trying to remove compliance from regulated transactions. It wants to make compliance more connected, efficient and easier to manage.

By bringing together identity verification, anti-money-laundering checks, source-of-funds analysis, client accounts and payments, Kord is addressing a structural weakness in many regulated industries.

Customer information and customer money are still frequently managed through separate systems.

The new funding gives Kord additional resources to expand its platform and strengthen its position across property, legal and financial services.

As digital fraud becomes more advanced and regulated industries continue to modernize, platforms that connect identity, compliance and payments could become an increasingly important part of Europe’s fintech market.

The post Kord raises £6.4 million to unify onboarding, compliance and payments appeared first on Cross-Border Magazine.

Large fashion companies operating in the European Union can no longer destroy unsold clothing, accessories and footwear under a new rule intended to reduce textile waste and promote more circular business models.

The prohibition entered into application on July 19, 2026, under the EU’s Ecodesign for Sustainable Products Regulation, commonly known as the ESPR.

The measure directly affects fashion brands, retailers, marketplaces and e-commerce companies that manage excess inventory, discontinued collections and returned products. Instead of sending usable goods to landfill or incineration, affected businesses must prioritize resale, donation, repair, refurbishment, remanufacturing or recycling.

For the fashion e-commerce sector, the regulation transforms returns and excess inventory from a cost-management issue into a compliance priority.

What does the EU ban cover?

The prohibition applies to unsold:

• Clothing
• Clothing accessories
• Footwear
• Returned products within these categories

Large companies are affected from July 19, 2026. Medium-sized enterprises are expected to be subject to the same prohibition as of July 19, 2030, while micro and small businesses are currently exempt.

The rule covers products that were never sold as well as returned goods that remain suitable for resale, repair or reuse.

Companies must follow the EU waste hierarchy. This means prevention and reuse should be prioritized before recycling, incineration or disposal.

Discount sales, outlet distribution, secondary marketplaces, donation programs and repair services may therefore become increasingly important routes for unsold stock.

Why has the EU introduced the measure?

The European fashion sector generates significant waste before many products are ever used.

According to figures referenced by the European Commission, between 4% and 9% of textile products placed on the European market are destroyed before use. This represents an estimated 264,000 to 594,000 tonnes of textiles annually.

The Commission also estimates that destroying unsold textiles generates approximately 5.6 million tonnes of carbon dioxide emissions every year.

These figures include more than the environmental impact of disposal. Every destroyed product also represents wasted raw materials, water, energy, transport and labor.

The prohibition is intended to discourage overproduction and encourage brands to improve forecasting, stock management and product circulation.

Are any exceptions allowed?

Products may still be destroyed in limited and justified circumstances.

Possible exceptions include goods that:

• Present a health or safety risk
• Are contaminated
• Are damaged beyond repair
• Are counterfeit
• Infringe intellectual-property rights
• Cannot reasonably be reused or recycled

However, high storage costs, reduced profitability or the difficulty of reselling a product are not sufficient reasons for destruction.

Businesses using an exception must be able to prove why destruction was necessary. This may require safety reports, damage assessments, correspondence with donation partners or evidence that reuse and recycling options were unavailable.

Relevant documentation must generally be retained for 5 years to allow national authorities to inspect it.

Why the ban matters for fashion e-commerce

Online fashion retailers are particularly exposed because they normally process higher return volumes than physical stores.

Customers often order several sizes, styles or colors and return the products they do not want. Returned goods may arrive with damaged packaging, missing labels or signs of handling. Seasonal products can also lose value while they move through the returns process.

In the past, some companies concluded that inspecting, cleaning, repackaging and restocking a low-value product cost more than disposing of it.

That calculation must now include regulatory compliance.

A product cannot be destroyed simply because processing it is expensive. Retailers must determine whether it can be resold, repaired, donated or recycled before considering disposal.

This increases the importance of fast returns processing. The longer a product remains in a returns center, the more likely it is to lose commercial value.

Reverse logistics becomes a compliance function

Retailers need visibility over what happens to every returned or unsold product after it reaches a warehouse, fulfillment center, store or logistics partner.

A compliant reverse-logistics operation should be able to direct products towards:

• Immediate resale
• Cleaning and repackaging
• Repair or refurbishment
• Outlet or secondary-market sale
• Donation
• Recycling
• Documented destruction as a last resort

This will require better product grading and stronger links among order management, inventory, and warehouse systems.

Companies should also review contracts with fulfillment and waste-management providers. Agreements should clearly explain who assesses returned goods, who approves disposal and who stores the evidence supporting each decision.

Outsourcing logistics does not necessarily remove the retailer’s regulatory responsibility.

Recommerce could benefit

The ban is likely to increase the supply of clothing and footwear available for resale.

Brands may expand official second-hand stores, outlet platforms, refurbishment programs and partnerships with recommerce marketplaces.

Other companies may use business-to-business liquidation networks to sell excess stock to authorized resellers rather than destroying it.

Luxury brands face a more complex challenge. Heavy discounting can weaken exclusivity, while uncontrolled liquidation may place products in unauthorized sales channels.

These companies may need to develop controlled resale programs, authenticated second-hand platforms or material-recovery systems that protect both compliance and brand value.

Better forecasting becomes essential

The best way to avoid problems with unsold stock is to produce and purchase more accurately.

Fashion businesses are likely to invest further in artificial intelligence, predictive analytics and real-time stock visibility.

Useful measures include:

• Smaller initial production runs
• Faster replenishment cycles
• Improved local demand forecasting
• Earlier markdowns
• Stock transfers between markets
• Pre-orders
• On-demand production
• Better analysis of return reasons

Retailers that identify weak demand early can redirect stock while it still has commercial value.

The regulation may therefore favor companies with flexible supply chains over businesses dependent on large advance orders and long production cycles.

Marketplaces must clarify responsibility

Online marketplaces may also be affected when they own inventory, provide fulfillment services or determine how returns are processed.

They must establish who owns a returned product, who decides whether it can be resold and who is responsible for documenting any disposal.

Marketplaces may need to revise automatic destruction settings and provide sellers with clearer resale, donation and recycling options.

This is especially important for fulfillment programs in which merchants have limited control over how returned or aging stock is handled.

What should retailers do now?

Affected businesses should immediately review every point at which returned or unsold stock leaves their inventory.

Priority actions include:

• Suspending automatic destruction policies
• Establishing product-grading procedures
• Creating resale, repair, donation and recycling routes
• Requiring approval before destruction
• Retaining evidence for every exception
• Reviewing logistics-provider contracts
• Training warehouse and returns teams
• Improving inventory and returns data
• Identifying approved resale and recycling partners

Companies should also prepare for disclosure obligations that require greater transparency about the quantity and types of unsold goods they discard.

A major change for European fashion

The ban on destroying unsold clothing and footwear is part of the EU’s wider effort to make textiles more durable, repairable and recyclable.

For fashion e-commerce, its impact will be felt across inventory planning, returns management, fulfillment, resale and logistics.

Unsold products can no longer be treated as disposable stock. They must be tracked and directed towards the most valuable compliant alternative.

Businesses with accurate forecasting, efficient reverse logistics and established resale networks will be best positioned to adapt.

For the European fashion industry, destruction is no longer the simplest answer to excess inventory.

The post EU ban on destroying unsold clothing and footwear enters into force appeared first on Cross-Border Magazine.

Shein is approaching one of the most important moments in its history. After unsuccessful attempts to list in New York and London, the online fashion retailer is preparing for a potential initial public offering in Hong Kong as early as September or October 2026.

However, the company will enter the public markets under significantly different conditions from those that powered its rapid international expansion.

New European customs duties, slower growth, increasing regulatory scrutiny and rising fulfilment costs are placing pressure on Shein’s low-price cross-border e-commerce model. These challenges could force the company to accept a valuation far below the $100 billion figure it reportedly achieved during a private funding round in 2022.

Shein is now expected to seek a valuation of approximately $40 billion to $50 billion, although some investors reportedly believe a figure closer to $30 billion may be more realistic.

Shein moves closer to a Hong Kong listing

Shein received approval from the China Securities Regulatory Commission for its planned Hong Kong IPO in July 2026, clearing one of the most significant obstacles facing the listing.

The company could reportedly sell up to 8% of its shares through the transaction. Its proposed listing would be one of the most prominent retail IPOs in recent years, particularly at a time when weaker consumer spending has caused many brands to postpone their public-market plans.

A Hong Kong listing represents the latest chapter in a lengthy and complicated IPO process.

Shein confidentially filed for a US listing in 2023 but encountered resistance connected to its supply chain, labour practices and links to China. It subsequently turned to London, where its proposed flotation also became delayed amid regulatory and political scrutiny.

The company then redirected its efforts towards Hong Kong, where it has now secured approval from Chinese regulators.

Despite clearing this regulatory hurdle, Shein must still convince investors that its growth model can remain profitable as some of its most important markets introduce stricter rules for low-value e-commerce imports.

Europe represents a critical market for Shein

Europe is particularly important to Shein’s IPO story because the region reportedly accounts for approximately one-third of the company’s global revenue.

Shein generated more than $40 billion in revenue and around $2 billion in net profit in 2025, according to figures reported by Reuters. Nevertheless, slower growth and new trade costs are creating uncertainty around its future earnings.

Shein’s success has traditionally been based on offering an enormous selection of low-priced fashion products, adding new items rapidly and shipping many orders directly from suppliers in China to consumers.

This model enabled the company to respond quickly to changing demand while avoiding the costs associated with maintaining large inventories in local markets.

The same operating structure, however, leaves Shein highly exposed to changes affecting low-value imported parcels.

The EU’s €3 customs duty changes Shein’s cost structure

On 1 July 2026, the European Union introduced a temporary €3 customs duty on low-value imports worth up to €150 that are sent directly to consumers from outside the EU.

The duty applies per item category, identified through its customs classification, rather than simply as a single charge on every parcel. A shipment containing products covered by several customs codes could therefore face multiple €3 duties. The temporary arrangement is expected to remain in place until 1 July 2028, when the EU’s wider customs reform is scheduled to introduce a new system for low-value imports.

This distinction is especially relevant for marketplaces selling mixed baskets of inexpensive products.

For example, a parcel containing a dress, fashion accessory and pair of shoes could contain several different customs classifications. The total duty applied to the shipment may consequently exceed €3.

For premium retailers, an additional charge of a few euros may have a relatively limited effect on consumer demand. For Shein, where many individual products cost less than €10, the impact can be much more significant.

The duty could increase the final price of an order, reduce the attractiveness of small purchases or force Shein to absorb part of the additional cost. Each option creates pressure on either demand or profit margins.

Low prices are central to Shein’s competitive advantage

Shein’s European value proposition depends heavily on affordability. Its customers are often highly price-sensitive and attracted by the ability to purchase several fashion items at prices below those offered by conventional retailers.

A fixed customs charge therefore represents a disproportionately large percentage of the price of many Shein products.

A €3 duty applied to an item costing €6 is equivalent to 50% of the product’s original price. Even when several products are combined in one shipment, multiple customs classifications could materially increase the total landed cost.

This presents Shein with several difficult options:

• Increase prices and risk weakening consumer demand.
• Absorb the duty and accept lower margins.
• Encourage customers to place larger orders.
• Consolidate products into bulk shipments before distributing them within the EU.
• Move more inventory into European warehouses.
• Increase the share of products supplied by European sellers.

Each response would move Shein further away from the highly flexible direct-from-China model that initially supported its international expansion.

Shein expands its European logistics operations

Shein has already begun adapting its European supply chain.

The company has expanded its logistics operations in Poland, establishing a regional fulfilment centre capable of supporting deliveries across European markets. The facility can also be used by external sellers operating through Shein’s marketplace.

Local warehousing allows products to be imported into the EU in larger commercial shipments rather than sent individually to consumers. Once customs procedures are completed, orders can be fulfilled from within the single market.

This approach can provide several advantages:

• Faster deliveries to European customers.
• Greater control over returns.
• More predictable customs processing.
• Lower dependence on direct low-value parcel shipments.
• Improved fulfilment services for marketplace sellers.

However, maintaining local inventory also introduces new costs and operational risks.

Shein may need to forecast demand earlier, hold more stock, lease additional warehouse capacity and manage unsold products. These requirements could weaken one of the central advantages of its original model: producing relatively small quantities and rapidly replenishing only the products that sell well.

Europe could accelerate Shein’s marketplace transition

Shein has gradually expanded beyond its role as a first-party fashion retailer by allowing external merchants to sell products through its platform.

The EU customs changes could accelerate this transformation.

A marketplace with more European sellers would allow Shein to offer products already located inside the EU. These items would not face the same direct-import duty when delivered to European consumers.

Shein could also generate more revenue from seller commissions, advertising, payments and fulfilment services. This would make its business model more similar to established online marketplaces.

However, increasing the number of third-party sellers introduces additional regulatory responsibilities. Shein must ensure that products offered through its platform comply with European safety, consumer-protection and digital-platform rules.

A larger marketplace could therefore help Shein reduce its customs exposure while simultaneously increasing its compliance obligations.

Regulatory pressure extends beyond customs duties

The €3 duty is only one element of Shein’s increasingly difficult European environment.

The European Commission has been examining the company under the Digital Services Act, which places significant responsibilities on very large online platforms.

These obligations include assessing systemic risks, removing illegal products, improving seller traceability, protecting minors and providing greater transparency around recommendation systems and advertising.

Shein has also faced scrutiny over product safety, environmental claims, addictive platform design, labour conditions and the sale of potentially illegal goods by external merchants.

These issues matter to prospective investors because regulatory investigations can lead to fines, operational restrictions, additional compliance costs and reputational damage.

They also complicate Shein’s efforts to present itself as a mature global technology and retail company rather than simply a low-cost cross-border seller.

The end of duty-free imports is a global problem for Shein

Shein’s European challenges follow similar changes in the United States.

The company’s model benefited for years from the US de minimis exemption, which allowed qualifying low-value goods to enter the country without normal customs duties. Changes to that treatment placed additional pressure on Shein’s American operations and contributed to uncertainty around its valuation.

The EU has now moved in the same direction.

Together, these developments suggest that the regulatory environment that enabled the explosive growth of direct-from-China e-commerce is coming to an end.

Governments are increasingly concerned about the enormous volume of low-value parcels entering their markets, the cost of customs enforcement, unfair competition for domestic retailers and the difficulty of checking every product for safety and compliance.

For Shein, this means the challenge is not limited to one temporary European duty. The company must demonstrate that it can remain competitive under a permanently more demanding global trade environment.

Shein’s valuation has fallen sharply

The difference between Shein’s previous and expected valuations illustrates how investor sentiment has changed.

The company was reportedly valued at approximately $100 billion in 2022, placing it among the world’s most valuable privately held businesses. Its valuation subsequently fell to around $66 billion during a 2023 funding round.

Shein may now seek a Hong Kong IPO valuation of between $40 billion and $50 billion. Some shareholders and potential investors have reportedly argued that the company could be worth closer to $30 billion.

Even at the higher end of the expected range, Shein would be worth less than half its reported 2022 peak.

The reduction does not necessarily mean that Shein’s business is failing. The company remains one of the world’s largest online fashion retailers and continues to generate substantial revenue and profit.

Instead, the falling valuation reflects a reassessment of its future growth, regulatory exposure, logistics costs and long-term margins.

Leadership changes add another layer of uncertainty

Shein’s preparations for the IPO are also taking place alongside a significant leadership transition.

Executive chairman Donald Tang is expected to leave his position as the listing approaches completion, although he may remain involved as a senior adviser. Founder and CEO Sky Xu is expected to take over as chairman and lead the company’s investor presentations.

Tang had acted as one of Shein’s most visible representatives when dealing with Western regulators, politicians and investors. His departure places greater responsibility on Xu, who has traditionally maintained a lower public profile.

For potential shareholders, the transition raises questions about corporate governance and how Shein will manage its relationships with regulators outside China.

The company must not only explain its financial performance but also demonstrate that it has the leadership structure and compliance systems required of a major publicly listed business.

What investors will want to know

Shein’s IPO presentation will need to answer several important questions.

The first is whether the company can continue growing after customs exemptions are removed in major markets.

Investors will also want to understand how much of the new import cost Shein intends to absorb and how much will be passed on to customers.

Another key issue will be the profitability of European fulfilment. Local warehouses may improve delivery speeds and reduce dependence on individual imports, but they also require greater capital investment and more sophisticated inventory management.

Shein will additionally need to explain whether it intends to remain primarily a fashion retailer or develop into a broader marketplace and logistics platform.

Finally, investors will assess whether the company’s regulatory and reputational risks have been adequately reflected in its proposed valuation.

What the Shein IPO means for European e-commerce

The outcome of Shein’s listing will have implications beyond the company itself.

If Shein successfully adapts to the EU’s customs system, it could provide a blueprint for other Asian marketplaces seeking to maintain access to European consumers.

The likely model would involve a combination of:

• Greater use of European fulfilment centres.
• More consolidated freight shipments.
• Larger average order values.
• Increased participation by local sellers.
• Stronger product-compliance controls.
• Greater investment in returns infrastructure.
• Reduced reliance on direct low-value imports.

Temu, AliExpress and other cross-border platforms are confronting many of the same pressures. European retailers and logistics providers should therefore expect more competition for local warehouse capacity, fulfilment partnerships and last-mile delivery services.

The customs reforms could also create opportunities for European brands that previously struggled to compete with ultra-low-priced imports.

However, local warehousing alone will not eliminate the competitive advantages enjoyed by large global marketplaces. Their technology, scale, marketing reach and supplier networks will remain formidable.

A test of whether Shein’s model can evolve

Shein’s planned Hong Kong IPO is becoming a test of whether the company can successfully move beyond the regulatory conditions that supported its original growth.

The retailer has already shown that it can build a global brand, use data to identify consumer demand and coordinate an enormous network of suppliers.

Its next challenge is more complex.

Shein must prove that it can maintain affordable prices while paying higher import costs, investing in local logistics, meeting stricter European regulations and providing investors with more transparency.

The EU’s €3 customs duty will not determine Shein’s future on its own. Nevertheless, it represents a wider structural change in cross-border e-commerce.

The era in which millions of ultra-low-value parcels could move directly from China to European consumers with minimal customs duties is ending.

Shein’s valuation, IPO performance and European strategy will show whether one of the biggest beneficiaries of that system can also succeed in the market that replaces it.

The post Shein’s European challenges weigh on its planned Hong Kong IPO appeared first on Cross-Border Magazine.

By fulfilmentcrowd - Consumer expectations continue to rise as four-day sales events place unprecedented pressure on eCommerce fulfillment operations

Amazon's four-day Prime Day event has once again demonstrated that eCommerce success is no longer determined solely by pricing or promotions, but by the retailers that can deliver exceptional customer experiences at scale.

Industry data suggests Prime Day 2026 generated more than $26 billion in online sales, with revenue increasing significantly year-on-year as shoppers spread purchases across the extended four-day event rather than concentrating spending on day one.

According to fulfilmentcrowd, the changing dynamics of Prime Day reflect a broader shift across eCommerce, where a robust operational setup has become a key differentiator.

"Peak trading events have evolved dramatically," said Lee Thompson, CEO of fulfilmentcrowd. "Consumers still expect competitive pricing, but they now demand next-day delivery, real-time order visibility and an easy post-purchase and returns experience. That places enormous pressure on retailers whose fulfilment operations aren't designed to scale."

Prime Day has become one of the most significant stress tests of the eCommerce supply chain, with marketplaces, retailers and brands processing millions of additional orders within days. Research from Numerator found many shoppers pre-planned their purchasing behaviour, with consumers heading into Prime Day with wish lists already prepared, rather than making impulse purchases.

For retailers selling both on Amazon and through their own eCommerce channels, this presents a significant operational challenge.

"Consumers don't distinguish between sales channels; they simply expect every order to arrive quickly and accurately," Thompson added. "Businesses relying on fragmented systems or manual fulfilment processes risk disappointing customers precisely when demand is at its highest."

The continued growth of Prime Day is also increasing competitive pressure beyond Amazon itself. Major retailers are now launching parallel promotional campaigns, creating a sustained period of elevated order volumes across the wider eCommerce sector.

fulfilmentcrowd believes this trend reinforces the importance of flexible, technology-driven fulfilment networks capable of scaling rapidly during peak periods without compromising service levels.

Looking to grow your eCommerce brand internationally? fulfilmentcrowd helps ambitious retailers scale across the UK, Europe, the US and Australia with tech-enabled fulfilment solutions, seamless integrations and a worldwide warehouse network designed to support fast, reliable global growth. Learn more at fulfilmentcrowd.com, fulfilmentcrowd.de or fulfilmentcrowd.us

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Amazon is introducing stricter delivery-performance requirements for merchants that fulfill customer orders through their own warehouses and logistics partners.

The changes affect sellers using Fulfilled by Merchant (FBM) across several major European Amazon marketplaces. New requirements cover on-time delivery performance, handling-time settings, deliveries to business customers, and customs documentation for cross-border shipments.

For independent merchants, brands, and fulfillment providers, the message is clear: seller-fulfilled operations will increasingly be judged against delivery standards more closely aligned with Amazon’s own logistics network.

What is Amazon Fulfilled by Merchant?

Under Fulfilled by Merchant, the seller remains responsible for storing inventory, processing orders, packaging products, selecting carriers and delivering parcels to customers.

This differs from Fulfillment by Amazon, or FBA, where inventory is stored in Amazon fulfillment centers, and Amazon manages most of the fulfillment process.

FBM gives merchants more direct control over inventory and logistics. It can be particularly useful for businesses selling bulky goods, specialized products, low-volume inventory, made-to-order products or merchandise already stored in their own European warehouses.

However, it also means that the seller is responsible for meeting the delivery promise displayed to the customer.

Amazon is now tightening the way it measures and enforces that responsibility.

A 90 percent On-Time Delivery Rate for European sellers

From 15 July 2026, Amazon expects FBM sellers in Germany to maintain an On-Time Delivery Rate of at least 90 percent.

The requirement measures the percentage of seller-fulfilled units delivered on or before the “Deliver by” date communicated to the customer.

From 1 September 2026, Amazon may deactivate affected listings if sellers fail to meet the policy requirements. Sellers could also lose the ability to create new FBM offers. Similar changes have been introduced in France, Italy and Spain.

The United Kingdom already has a minimum OTDR requirement of 90 percent for seller-fulfilled orders, which took effect in September 2025. Amazon is now adding further operational rules for handling times and Amazon Business deliveries in the UK.

Although a 90 percent threshold still allows one in ten orders to arrive late, sellers should not treat it as a comfortable operating target. Seasonal peaks, carrier disruptions, weather events or incorrect delivery scans could quickly pull a seller below the minimum.

Merchants will therefore need to consistently operate above the threshold rather than aim to meet it exactly.

What happens when a seller falls below 90 percent?

Amazon’s enforcement can affect individual seller-fulfilled listings rather than immediately disabling an entire FBM catalog.

Listings that contribute most to a seller’s OTDR decline may be temporarily deactivated. Repeated or significant performance failures could potentially result in broader restrictions on the seller’s ability to offer merchant-fulfilled products.

This listing-level approach may reduce the impact of an isolated logistics problem across an entire account. However, it also creates a direct connection between carrier performance and product availability.

A poorly performing delivery route, fulfillment location, carrier service or group of SKUs could cause specific offers to disappear from the marketplace.

For merchants, the consequences go beyond account health. Listing deactivation can interrupt sales momentum, reduce visibility, affect advertising campaigns and push customers towards competing offers.

Amazon is also tightening handling-time settings

Amazon is not only measuring whether orders arrive on time. The marketplace is also reviewing whether sellers are setting delivery promises that accurately reflect their real fulfillment performance.

In the United Kingdom, Amazon stated that 90 percent of FBM orders already dispatch within one day. From 15 July 2026, the account-level default handling time setting will therefore be limited to 0 or 1 day.

Accounts with a default handling time of 2 days will automatically be changed to 1 day. Sellers will still be able to configure longer handling times for individual SKUs where required.

A further change will take effect from 1 September 2026. When a SKU’s configured handling time remains at least one day longer than the seller’s actual performance for more than 30 days, Amazon may activate Automated Handling Time for that product.

The system will then use the seller’s historical fulfillment data to create a faster delivery promise.

Amazon argues that more accurate and competitive delivery dates can improve conversion. From the merchant’s perspective, however, the policy reduces the ability to add operational buffers to account for exceptional circumstances.

This could be particularly challenging for small businesses, handmade sellers, made-to-order brands and merchants whose order-processing capacity varies significantly during busy periods.

New requirements for Amazon Business deliveries

Amazon is also introducing a dedicated delivery-performance metric for orders placed by business customers.

From 30 September 2026, FBM sellers in Germany and the United Kingdom are expected to maintain a Business Hour Delivery Rate of at least 90 percent.

The metric measures the percentage of Amazon Business shipments delivered during the customer’s stated operating hours.

From 30 October 2026, non-compliant listings may be deactivated for business customers if the seller remains below the required level.

This requirement is intended to reduce unsuccessful delivery attempts and prevent parcels from arriving when commercial premises are closed.

However, sellers may face complications when business addresses are also residential properties, when opening-hour data is inaccurate or when carriers complete deliveries outside the expected time window despite successfully handing the parcel to the customer.

The change makes carrier selection especially important for B2B sellers. A service that performs well for residential delivery may not necessarily offer the scheduling precision required for offices, shops, warehouses and industrial premises.

Cross-border sellers face additional customs requirements

Amazon’s updated FBM rules also address shipments entering the European Union from outside the bloc.

For eligible consignments valued at no more than €150 and imported under the Import One-Stop Shop system, sellers are expected to use approved carriers that can provide the required customs documentation.

Merchants must provide the carrier with Amazon’s IOSS number and the relevant ASIN details for each product in the shipment.

This creates another layer of operational responsibility for UK and other non-EU sellers shipping directly to EU customers.

A parcel may be dispatched on time but still miss its customer delivery promise due to incorrect customs data, an unsupported carrier, incomplete product information, or a clearance delay.

Cross-border merchants must therefore manage customs compliance and delivery performance as part of the same process.

Why Amazon is tightening its FBM rules

Amazon says the changes are intended to provide more accurate delivery promises, improve conversion, ensure reliable deliveries to business customers and facilitate smoother customs clearance.

The broader strategic objective is consistency. Customers generally see Amazon as a single shopping environment, regardless of whether an order is fulfilled by Amazon or shipped by an independent seller. A delayed FBM delivery, therefore, affects the broader customer perception of the marketplace.

By tightening handling time and delivery requirements, Amazon is attempting to make the customer experience less dependent on the fulfillment method for each offer.

The policy also encourages sellers to adopt more of Amazon’s fulfillment and shipping technology.

Amazon recommends tools including Automated Handling Time, Shipping Settings Automation and Amazon Buy Shipping. In some cases, orders that use Amazon’s approved combination of tools may be excluded from certain delivery performance calculations.

This gives merchants a potential route to better delivery estimates and greater policy protection. At the same time, it increases their reliance on Amazon’s logistics ecosystem.

What the changes mean for cross-border e-commerce

The new rules could have a disproportionate impact on merchants that fulfill orders across borders from a central European warehouse.

Domestic deliveries are generally easier to predict. Cross-border parcels pass through more carrier hubs, may involve handovers between logistics companies and can be affected by different weekend schedules, public holidays and regional delivery practices.

A seller dispatching from Poland, the Netherlands or the Czech Republic to customers in Germany, France, Spain and Italy may therefore need different shipping templates and transit-time settings for each destination.

Using one general European delivery promise may no longer provide sufficient accuracy.

Merchants shipping from outside the EU face even greater risk because customs clearance becomes part of the delivery-performance calculation from the customer’s perspective.

The changes could encourage more sellers to:

• Store inventory closer to their main customer markets.
• Use local fulfillment centers or multi-country warehouse networks.
• Replace untracked postal services with fully tracked carriers.
• Introduce carrier selection by destination and product type.
• Move selected fast-selling products from FBM to FBA.
• Maintain separate delivery settings for domestic and cross-border orders.
• Build larger operational buffers around peak sales periods.

For fulfillment providers, the policy creates an opportunity to differentiate through accurate delivery data, carrier management and marketplace integration.

How sellers can prepare

The first step is to review the On-Time Delivery Rate in Amazon’s Account Health Dashboard and identify which products, shipping lanes or carriers are responsible for late deliveries.

Sellers should then compare their configured handling and transit times with actual operational performance.

Setting unrealistically fast delivery promises increases the risk of failing to meet the OTDR requirement. Setting them too conservatively may trigger Amazon’s automated handling-time adjustments.

The objective should be accuracy rather than simply speed.

Merchants should also verify that carrier tracking is uploaded correctly and that delivery scans are recognized by Amazon. A parcel that reaches the customer on time may still be recorded incorrectly when tracking information is incomplete, delayed or incompatible with Amazon’s systems.

Cross-border sellers should review every shipping route separately. Carrier performance from Germany to France may differ considerably from performance on shipments to Spain or Italy.

Amazon Business merchants should confirm whether their carriers can consistently deliver during commercial operating hours and provide reliable proof of delivery.

Finally, sellers importing low-value parcels into the EU should verify their IOSS processes, courier eligibility and product-level customs data before dispatch.

Will the changes push more sellers towards FBA?

The updated requirements may make FBA more attractive for products that require fast, predictable delivery.

Under FBA, Amazon manages storage, picking, packing and delivery. The merchant is therefore not directly responsible for the same seller-fulfilled OTDR requirement.

However, FBA is not automatically the right choice for every product.

Storage fees, inbound transport, inventory allocation, long-term storage costs and product restrictions can make merchant fulfillment more economical for certain categories.

Many brands may adopt a hybrid approach instead. Fast-moving products can be placed in Amazon’s fulfillment network, while slower, bulky or specialized items remain under FBM.

The decision will increasingly depend not only on fulfillment cost, but also on whether the seller’s own logistics network can reliably satisfy Amazon’s performance metrics.

Delivery performance becomes a marketplace-access requirement

Amazon’s latest FBM changes show that delivery performance is no longer merely a customer service indicator.

It is becoming a condition for maintaining visibility in the marketplace. For European merchants, particularly those operating across borders, accurate handling times, reliable carriers, valid tracking and correct customs documentation are now directly linked to whether products remain available for sale.

Sellers who can provide dependable and transparent fulfillment will continue to benefit from the control FBM offers.

Those relying on inconsistent carriers, broad delivery estimates or manual logistics processes face a growing risk of listing restrictions and lost sales.

The central challenge is therefore not necessarily delivering every order faster. It is delivering each order when the marketplace has promised it will arrive.

The post Amazon Tightens Fulfilled by Merchant Requirements Across Europe appeared first on Cross-Border Magazine.

Uber has reportedly paused most of its planned Uber Eats expansion across Europe, marking a significant change in direction only months after announcing its intention to enter seven additional markets.

According to a Financial Times report subsequently covered by Reuters, Uber no longer intends to proceed for now with food-delivery launches in five of the seven countries included in the expansion programme.

Austria, Norway and Greece were identified among the affected markets. The report did not name the other two countries.

Uber Eats will continue operating in Denmark and Finland, where the company says its recent launches have performed strongly. The strategic retreat comes as Uber continues pursuing a possible acquisition of Berlin-based Delivery Hero.

Reuters said it could not independently verify the Financial Times report. Uber did not respond to Reuters’ request for comment, while Delivery Hero declined to comment.

The development nevertheless suggests that Uber may be reconsidering the cost of building delivery networks country by country while simultaneously pursuing an acquisition that could give it immediate access to established restaurants, couriers, retailers and consumers across numerous international markets.

Uber originally targeted seven new European markets

Earlier in 2026, Uber announced plans to expand its food-delivery business into seven additional European countries:

• Austria
• Denmark
• Finland
• Norway
• The Czech Republic
• Greece
• Romania

Uber expected the expansion to generate approximately $1 billion in additional gross bookings over three years.

The company has since launched in Denmark and Finland. According to the latest report, Uber has paused plans for five of the remaining or originally targeted markets.

Austria, Norway and Greece were specifically identified. Because the report did not name the other two, it would be premature to state definitively that they are the Czech Republic and Romania, even though those are the two remaining countries from the original list.

Uber reportedly told the Financial Times that it had decided to concentrate on Denmark and Finland following the “huge success” of those launches. The company intends to focus resources on maintaining momentum in markets where Uber Eats is already operating.

There has been no public indication of when, or whether, the other planned launches could be reconsidered.

Uber continues to pursue Delivery Hero

The pause comes while Uber is pursuing a potential takeover of Delivery Hero, one of the world’s largest local-delivery groups.

Delivery Hero confirmed on 23 May 2026 that it had received an approach from Uber involving a potential takeover offer of €33 per share.

The offer did not represent a final agreement. Delivery Hero shareholders and investors subsequently indicated that the proposed price could undervalue the company, and Uber’s board reportedly discussed whether to increase the offer.

However, no higher formal bid or completed acquisition had been announced at the time of publication.

The initial €33-per-share proposal would value Delivery Hero at more than €11 billion, depending on the number of shares and the valuation method used.

Uber has built a major Delivery Hero position

Uber had already become Delivery Hero’s largest shareholder before the takeover approach became public.

On 18 May, Delivery Hero said Uber held approximately 19.5% of its issued share capital and options corresponding to another 5.6%.

Reuters later reported that Uber increased its overall Delivery Hero position from approximately 25% to nearly 37% after buying shares from Aspex Management.

The figures should be understood carefully. Delivery Hero’s official 19.5% disclosure referred to issued share capital at a particular point in time, while the larger percentages reported later reflected Uber’s expanded position and potentially included different forms of economic exposure.

What is clear is that Uber has accumulated a strategically significant interest in Delivery Hero while exploring a full acquisition.

Why Uber may prefer acquisition over organic expansion

Launching a delivery platform in a new country requires considerable investment.

A company must recruit restaurants and retail partners, establish a courier network, localise payment and technology systems, provide customer support and invest heavily in consumer marketing.

New entrants also frequently use discounts and promotions to attract customers from established competitors. This can make organic market expansion expensive, particularly in countries where consumers already have access to several mature platforms.

Acquiring Delivery Hero could give Uber immediate access to existing delivery infrastructure instead of requiring it to reproduce those networks independently.

Delivery Hero operates a wide portfolio of regional brands, including:

• Glovo
• foodora
• foodpanda
• talabat
• PedidosYa
• efood
• Yemeksepeti
• HungerStation
• Woowa Brothers

These businesses already have relationships with restaurants, grocery companies, retailers, couriers and consumers across Europe, Asia, the Middle East and Latin America.

A successful takeover could therefore provide Uber with geographic scale that would be costly and time-consuming to achieve through individual country launches.

Avoiding competition with a potential acquisition target

Pausing the launches may also prevent Uber from investing in new operations that could overlap with businesses it hopes to acquire.

Entering markets already served by Delivery Hero brands could require Uber to spend money competing against the same restaurant, courier and customer networks that it may eventually own.

That could create duplicate operating structures and unnecessary promotional expenditure.

By concentrating on Denmark and Finland, Uber can continue expanding in markets where it has already launched while avoiding further commitments during the Delivery Hero negotiations.

Uber has not publicly said that the pause was caused by its takeover plans. The connection should therefore be treated as a strategic interpretation rather than a confirmed explanation.

Nevertheless, the timing makes the two developments difficult to examine separately.

Delivery Hero offers more than restaurant delivery

Delivery Hero has increasingly positioned itself as a broader local-commerce platform rather than a traditional takeaway business.

Its Everyday App strategy combines restaurant orders with groceries, convenience products, household goods, health and beauty items, pet products and other frequently purchased categories.

During the first quarter of 2026, Delivery Hero reported:

• Group gross merchandise value of approximately €12.5 billion
• Like-for-like GMV growth of 8.8%
• Total segment revenue of approximately €3.7 billion
• Like-for-like revenue growth of 17.8%

Quick commerce has become an increasingly important part of this strategy.

Delivery Hero reported quick-commerce GMV of approximately €7.5 billion in 2025. It also said customers who purchased both restaurant food and quick-commerce products accounted for slightly more than half of group GMV during the first quarter of 2026.

A takeover would consequently give Uber more than a larger meal-delivery network. It could strengthen the company’s position in grocery delivery, convenience commerce and the rapid delivery of everyday retail products.

The European delivery market is consolidating

Uber’s reported change in strategy reflects a broader consolidation trend in European delivery.

After years of rapid expansion, heavy promotional expenditure and competition for market share, delivery companies are increasingly prioritising profitability and operational efficiency.

Acquisitions provide one way to obtain new customers and delivery networks without starting from zero in every country.

Prosus completed its acquisition of Just Eat Takeaway in 2025 after receiving conditional approval from the European Commission. As part of the regulatory commitments, Prosus agreed to substantially reduce its significant holding in Delivery Hero.

Prosus subsequently sold Delivery Hero shares to Uber and other investors, helping Uber build its position in the German company.

Elsewhere in the market, DoorDash has also pursued international expansion through major acquisitions, including its agreement to acquire Deliveroo.

These transactions indicate that global delivery groups increasingly view acquisitions as a faster route to geographic scale.

A Delivery Hero takeover would face regulatory scrutiny

A full Uber acquisition of Delivery Hero would likely require extensive competition reviews across several jurisdictions.

Authorities would assess the companies’ positions in individual national markets rather than treating Europe or the global delivery sector as a single market.

Uber Eats competes directly with Delivery Hero-owned platforms in a number of countries. Regulators could investigate whether combining those operations would:

• Reduce consumer choice
• Increase restaurant commissions
• Weaken competition for couriers
• Increase delivery or service charges
• Give the combined company excessive market power

Uber has already encountered regulatory resistance to a Delivery Hero-related acquisition.

In December 2024, Taiwan’s Fair Trade Commission blocked Uber’s proposed $950 million acquisition of Delivery Hero’s Foodpanda business in Taiwan. The regulator concluded that Uber Eats and Foodpanda would control approximately 90% of the local food-delivery platform market after the transaction.

Uber decided not to appeal and terminated the acquisition in March 2025. It was required to pay an approximately $250 million termination fee.

The Taiwan case does not determine how European regulators would assess a Delivery Hero takeover. However, it demonstrates the challenges Uber could face in markets where the two companies are among the leading competitors.

European regulators could demand divestments or other remedies before allowing a transaction to proceed.

Delivery Hero is undergoing a leadership transition

The potential takeover is also taking place during a period of strategic change at Delivery Hero.

The company announced in May 2026 that co-founder and CEO Niklas Östberg would step down after a successor had been appointed, and no later than 31 March 2027.

Östberg will remain CEO during the transition and will continue leading Delivery Hero’s strategic review and associated merger and acquisition processes.

The leadership change followed pressure from shareholders seeking improvements in capital allocation, corporate strategy and Delivery Hero’s geographic portfolio.

This environment could make partnerships, asset sales or a broader transaction more likely. At the same time, Delivery Hero’s revenue growth and improving quick-commerce performance could strengthen shareholder arguments that Uber must offer a higher price.

Denmark and Finland remain important test markets

Uber has not stopped expanding its European food-delivery business completely.

Denmark and Finland remain central to the company’s current plans.

Uber says the strong early performance of those launches encouraged it to concentrate resources on building scale in the two countries instead of dividing its investment among seven simultaneous market entries.

This strategy could allow Uber to improve restaurant selection, courier coverage and customer retention before committing to another expansion phase.

The performance of Denmark and Finland could also demonstrate whether Uber remains capable of entering European delivery markets organically while pursuing acquisitions elsewhere.

From expansion to consolidation

Uber’s reported pause in five planned European markets represents more than a change to its launch calendar.

It may signal a broader shift in how the company intends to grow its delivery business.

Instead of building every local operation independently, Uber appears increasingly willing to use shareholdings and acquisitions to obtain international scale.

Delivery Hero offers an established network that would be difficult and expensive to recreate. It could also accelerate Uber’s expansion beyond restaurant delivery into groceries, convenience products and broader local e-commerce.

The transaction remains uncertain. There is no final takeover agreement, Delivery Hero shareholders may demand a higher price, and regulators could require significant remedies or block the acquisition in markets with substantial competitive overlap.

For now, Uber is concentrating on Denmark and Finland while reportedly placing five other European launches on hold.

Whether those markets have been permanently removed from Uber’s plans will depend on future strategic decisions and potentially on the outcome of the Delivery Hero takeover process.

What is already clear is that European delivery is entering a period in which consolidation may become more important than rapid organic expansion.

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The European Union has introduced a new €3 customs duty on low-value e-commerce parcels imported from outside the EU, marking one of the most significant changes to cross-border online retail in recent years. The measure applies from 1 July 2026 to goods in consignments valued at up to €150, a category that has become central to the business models of global marketplaces, ultra-fast fashion platforms and direct-to-consumer sellers shipping into Europe.

For years, parcels under the €150 threshold benefited from customs duty relief. That system was originally designed for a very different trade environment, before the explosion of direct-to-consumer e-commerce and the rise of platforms shipping millions of small parcels into the EU every day. The European Commission now says the temporary €3 duty is intended to improve fairness, strengthen customs control and respond to the sharp rise in low-value imports.

The change will immediately affect non-EU sellers, marketplaces, logistics operators, customs intermediaries and consumers. Platforms such as Shein, Temu and AliExpress are expected to feel the impact most directly because their European growth has relied heavily on low-cost, low-value parcel flows from outside the bloc.

What exactly changes from 1 July 2026?

From 1 July 2026, the EU applies a temporary fixed customs duty of €3 to low-value imports. According to the Council of the EU, the charge applies to goods entering the EU in small consignments worth less than €150, where non-EU sellers are registered in the EU’s Import One-Stop Shop, known as IOSS, for VAT purposes. The Council says this covers around 93% of e-commerce flows to the EU.

The European Commission describes the measure as temporary and transitional. It is expected to remain in place until 1 July 2028, when a more permanent customs framework is due to replace it as part of the wider EU Customs Reform.

In practical terms, the old duty-free treatment for many low-value parcels is ending. Instead of allowing goods worth up to €150 to enter without customs duty, the EU is introducing a flat charge that makes even very cheap imported products more expensive to ship into the bloc.

Why is the EU introducing the €3 parcel fee?

The measure is a direct response to the dramatic increase in small e-commerce parcels entering the EU. Reuters reports that low-value parcel volumes increased from 1.4 billion in 2022 to 5.8 billion in 2025, driven largely by online shopping and imports from China.

EU policymakers argue that the previous system created an uneven playing field. European retailers are subject to EU product safety, VAT, environmental, labour and compliance rules, while many imported low-value parcels entered the market with limited customs friction and lower cost structures.

The European Commission has also linked the change to product safety and consumer protection. Cheap imported goods can include clothing, toys, electronics, cosmetics and other consumer products. These categories often require stronger oversight because unsafe or non-compliant goods can enter the market through fragmented parcel flows.

Why this matters for marketplaces

The new fee strikes at the heart of the cross-border marketplace model. Many global platforms have grown by connecting European consumers directly with overseas sellers, often shipping individual products from outside the EU into consumers’ homes.

A flat €3 duty may sound small, but it can be significant on a €5, €8 or €12 product. For low-margin categories such as fashion accessories, home goods, toys, gadgets and beauty items, the new charge could materially affect pricing.

Marketplaces now face several strategic choices. They can absorb part of the cost, pass it on to consumers, encourage larger basket sizes, consolidate shipments, or move more inventory into European warehouses. Each option changes the economics of cross-border selling.

The most likely long-term effect is a push toward more EU-based fulfilment. Sellers that store goods inside the EU may be better positioned to avoid some of the friction associated with direct parcel imports, while also improving delivery speed and customer experience.

Impact on consumers: cheap imports may become less cheap

For European consumers, the clearest impact will be price transparency and higher landed costs. The new duty means that some ultra-low-cost purchases from non-EU platforms may no longer feel as cheap once customs charges are included.

The biggest impact will likely be on small, single-item orders. A €3 duty on a €6 product represents a 50% increase before considering VAT, shipping, platform fees or any additional logistics costs. On larger orders, the relative impact is smaller, although mixed baskets may still become more complex depending on how items are classified.

Consumers may respond in several ways. Some will buy fewer low-value items. Others may consolidate purchases into larger orders. Some may shift toward EU-based retailers or marketplaces that offer clearer final pricing, faster delivery and easier returns.

Impact on logistics and customs operators

The new duty also creates operational pressure for logistics companies, postal operators and customs intermediaries. Low-value e-commerce already generates a high volume of customs declarations. Adding a fixed duty increases the importance of accurate product classification, data quality and automated customs processing.

For logistics providers, this could become both a burden and an opportunity. Operators with strong customs technology, IOSS handling, data validation and cross-border parcel infrastructure will be better positioned to support marketplaces and merchants.

The shift may also accelerate demand for European fulfilment networks. If more non-EU sellers decide to store inventory closer to consumers, logistics companies with warehousing, returns management and pan-European distribution capabilities may benefit.

A temporary measure before deeper EU Customs Reform

The €3 duty is not the final destination. It is part of a broader EU effort to reform customs rules for the e-commerce era. The European Commission says the temporary duty will remain in place until the wider reform is implemented, with a more permanent framework expected from 1 July 2028.

The future system is expected to rely more heavily on digital customs data, platform responsibility and a more centralized approach to enforcement. The EU wants to modernize customs for a market where trade no longer moves mainly through bulk shipments, but increasingly through millions of individual parcels.

This matters because the current change is not only about revenue. It is about control. The EU is trying to make customs fit a marketplace-driven e-commerce economy where sellers, platforms, logistics providers and consumers are often located in different jurisdictions.

What online sellers should do now

For non-EU sellers, the first step is to review pricing and landed-cost calculations. Products that were profitable under the old low-value parcel model may become less competitive once the €3 charge is included.

Sellers should also assess product classification, IOSS setup, VAT compliance, customs data quality and delivery terms. Any weakness in these areas can create delays, unexpected costs or poor customer experience.

For larger sellers, EU warehousing may become more attractive. Holding stock inside the bloc can reduce delivery times, simplify the customer journey and make pricing more predictable. However, it also brings new costs, including storage, inventory risk, returns handling and local compliance.

European sellers should also watch the change closely. The new duty may reduce some of the price advantage held by non-EU competitors, but it does not remove competition from global marketplaces. Instead, it may shift competition toward logistics efficiency, local availability, brand trust and transparent pricing.

What marketplaces should do now

Marketplaces will need to make import costs visible and understandable. Hidden fees at delivery are bad for conversion, customer satisfaction and repeat purchasing. Clear checkout communication will be essential.

They will also need to support sellers with compliance tools, product data checks, customs classification guidance and fulfilment options. Platforms that can simplify the transition may retain sellers more successfully than those that leave merchants to manage the new rules alone.

The biggest marketplaces are likely to accelerate their European logistics investments. More local fulfilment, more seller onboarding inside the EU and more hybrid marketplace-retail models could become part of the next phase of European e-commerce competition.

The bigger picture: Europe is redefining cross-border e-commerce

The EU’s €3 fee is more than a customs update. It is a signal that Europe wants to reshape the economics of low-value cross-border e-commerce.

The old model rewarded speed, volume and ultra-low pricing. The new model will increasingly reward compliance, transparency, fulfilment quality and local market presence. That does not mean platforms such as Shein, Temu and AliExpress will disappear from Europe. But it does mean their cost structure is changing.

For European retailers, the measure could offer some relief from direct low-cost import competition. For consumers, it may mean fewer extremely cheap imported products and more visible costs at checkout. For logistics companies, it creates new demand for customs expertise and EU-based fulfilment. For marketplaces, it forces a strategic rethink.

The low-value parcel era is not over, but it is becoming more regulated, more expensive and more complex. Cross-border e-commerce in Europe is entering a new phase: one where cheap access to the EU consumer market can no longer be taken for granted.

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London-based live commerce platform Tilt has raised $26 million in fresh funding, marking one of the most notable recent funding rounds in Europe’s e-commerce startup ecosystem. The investment comes as live shopping, social commerce and AI-powered seller tools move from experimental formats to serious strategic priorities for online retailers, marketplaces and recommerce platforms.

The round includes Vinted Ventures, the investment arm of second-hand marketplace Vinted, as a new investor, alongside existing backers TQ Ventures, Balderton Capital, Earlybird, Seedcamp and others. According to Tilt, the new capital brings the company’s total funding raised to over $50 million.

Founded in 2021 by former Revolut employees Abhi Thanendran and Neil Shah, Tilt is building a live auction app where sellers showcase products in real time and buyers can bid, interact and purchase through livestreams. The company positions itself as a European answer to the rise of entertainment-driven commerce, combining video, community, auctions and AI-powered discovery into one shopping experience.

Why Tilt’s funding matters for European e-commerce

For years, European e-commerce has been defined by search, static listings, price comparison and increasingly efficient checkout flows. Tilt’s model points in a different direction: one where online shopping becomes more interactive, social and content-led.

That shift is already visible across the wider market. TikTok Shop has been expanding across Europe, joining existing markets including France, Germany, Ireland, Italy, Spain and the UK. TikTok has also reported that more than 100,000 European businesses had already joined TikTok Shop across France, Germany, Italy, Spain and Ireland, with strong growth in daily gross merchandise value across those markets.

Tilt operates in the same broader movement, but with a more focused live auction and community-commerce model. Instead of simply adding shoppable videos to a social network, Tilt is building a dedicated marketplace around real-time selling. This makes the company especially relevant for fashion, sneakers, collectibles, second-hand items and categories where scarcity, trust, personal presentation and community can influence conversion.

From static listings to live interaction

Traditional e-commerce is built around product pages. Tilt is built around live interaction.

Sellers go live, show items on camera, answer questions and create a sense of urgency through auctions. Buyers do not only browse; they watch, interact, bid and return to sellers or communities they trust. This is why live commerce can create a very different type of retention from conventional marketplace shopping.

Tilt says it has grown 8x since its 2024 Series A. The company also reports that buyers spend over an hour a day on the app, that 70% return week-on-week, and that 70% of monthly GMV comes from repeat buyers. The platform is currently live across the UK, Italy, Spain and Poland.

These figures matter because they suggest Tilt is not only acquiring occasional buyers. It is trying to build a repeat shopping habit around live discovery, seller personality and community engagement.

AI is becoming central to Tilt’s live commerce model

Tilt’s funding round is not just a live shopping story. It is also an AI e-commerce story.

The company has developed a set of AI tools designed to reduce friction for sellers and improve product discovery for buyers. These include Snap, a tool that can turn an item shown on camera into a listing within seconds; a real-time AI copilot that supports sellers with pricing and responses during livestreams; natural-language search across live sessions; and AI-generated clips that can repurpose livestream content for social media distribution.

This is strategically important. One of the challenges of live commerce is operational intensity. Sellers need to source products, present them, answer questions, price items, manage auctions, create content and maintain community engagement. AI can help reduce that workload and make live selling more scalable for smaller merchants.

For buyers, AI also helps solve a discovery problem. In a live shopping environment, inventory is fluid and time-sensitive. Traditional search is less effective when the best product may be inside a livestream happening right now. Tilt’s AI-powered matching and search tools are designed to connect users with relevant live sessions in real time.

Vinted Ventures’ participation signals a recommerce opportunity

The participation of Vinted Ventures is one of the most significant elements of the round. Vinted is one of Europe’s best-known second-hand marketplaces, and its venture arm’s investment in Tilt suggests that live commerce is increasingly relevant to the future of recommerce.

Second-hand and resale categories are particularly well suited to live selling. Items are often unique, condition varies, trust matters, and buyers may want to see products from different angles before purchasing. A livestream can make resale feel more transparent and more engaging than a static listing.

Tilt itself framed Vinted’s backing as a strategic signal. In the company’s announcement, CEO and co-founder Abhi Thanendran said that the next generation will not browse static listings in the same way, but will discover and buy through video, conversation and live interaction. Vinted’s Martijn van Heeswijk also highlighted Tilt’s differentiated experience in live selling, with potential in fashion and beyond.

For European recommerce, this could be an important development. If resale marketplaces increasingly move toward video-led discovery, the competitive landscape could shift from who has the largest catalogue to who can create the strongest buyer-seller interaction.

Europe is becoming a live commerce battleground

Live commerce has already become a major retail format in Asia. Tilt says the category is a $370 billion-plus industry in Asia, while Western markets are still at an earlier stage of adoption.

In Europe, the format is now becoming more competitive. TikTok Shop is expanding its European footprint. Whatnot has established itself as a major live auction player globally. At the same time, local platforms such as Tilt are trying to build a European model adapted to regional consumer behaviour, seller communities and recommerce habits.

The wider e-commerce context supports this shift. Eurostat data shows that in 2024, EU enterprises generated 19.49% of total turnover from e-sales, with websites and apps accounting for 8.39% and EDI-type sales accounting for 11.07%. Web sales remain the dominant e-sales method among enterprises, but the next layer of competition is increasingly about discovery, attention and conversion rather than simply having an online sales channel.

This is where live commerce becomes strategically relevant. As more businesses sell online, standing out through static listings becomes harder. Content-led and community-led formats offer a new way to reach buyers, especially younger audiences already accustomed to discovering products through short video and creator recommendations.

What Tilt will use the funding for

Tilt says the new funding will be used to accelerate its AI roadmap, expand its seller base across new markets and continue scaling the team. The company currently has a team of around 60 people.

The expansion strategy appears to focus on three areas.

First, Tilt needs to continue improving the seller experience. Live commerce only works at scale if sellers can list products quickly, manage livestreams efficiently and reach relevant audiences without excessive manual work.

Second, the company needs to expand geographically. Tilt is already active in the UK, Italy, Spain and Poland, but Europe remains fragmented by language, payment habits, delivery expectations and local marketplace preferences.

Third, Tilt needs to defend its position as larger players move into the same space. TikTok Shop has enormous distribution. Whatnot has significant funding and category experience. Traditional marketplaces could also add more livestreaming and auction features over time.

Why retailers and marketplaces should pay attention

Tilt’s raise is relevant beyond the startup itself. It reflects a broader direction of travel in e-commerce.

Retailers, brands and marketplaces are under pressure to reduce customer acquisition costs, increase retention and create more engaging shopping experiences. Live commerce offers a possible answer by combining product discovery, entertainment, community and conversion in the same environment.

For fashion and second-hand sellers, the opportunity is particularly clear. Products can be demonstrated in real time, condition can be shown more transparently, and scarcity can create urgency. For niche categories such as sneakers, collectibles or limited drops, live auctions can turn shopping into an event rather than a transaction.

However, the model also creates new operational requirements. Sellers need presentation skills, inventory discipline, fast fulfilment, clear returns policies and strong customer service. Platforms need trust and safety systems, payment infrastructure, moderation, buyer protection and logistics partnerships. In that sense, live commerce is not simply a marketing format. It is a full e-commerce operating model.

The bigger picture: AI, video and recommerce are converging

Tilt’s $26 million funding round sits at the intersection of three major e-commerce trends.

The first is AI automation. E-commerce companies are increasingly using AI to support product listing, discovery, search, content generation and customer interaction.

The second is video-led shopping. TikTok Shop’s expansion across Europe shows that major platforms believe content-driven commerce can become a mainstream sales channel.

The third is recommerce. Vinted Ventures’ participation highlights the relevance of live selling for second-hand and resale categories, where trust, uniqueness and product condition are especially important.

Together, these trends suggest that the future of online shopping in Europe may not be defined only by faster delivery or lower prices. It may also be defined by richer interaction, stronger communities and smarter discovery.

Conclusion: Tilt’s round is a signal for Europe’s next e-commerce phase

Tilt’s $26 million raise shows that investor interest in European e-commerce is moving beyond traditional marketplace models. The new capital, combined with Vinted Ventures’ participation, positions Tilt as one of the most closely watched European startups in live commerce.

The company still faces major challenges. Live shopping adoption in Europe remains less mature than in Asia, competition from TikTok Shop and Whatnot is intensifying, and scaling across Europe requires strong localization. But Tilt’s growth metrics, AI tooling and recommerce relevance make the company an important indicator of where the market may be heading.

For European e-commerce, the message is clear: the next wave of competition will not only be about who sells online. It will be about who can turn shopping into discovery, interaction and repeat engagement.

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