As e-commerce continues to expand across Europe, the environmental impact of parcel delivery is becoming increasingly important. More online orders usually mean more delivery vehicles, more stops, more congestion, and higher emissions—especially during the last mile.

Poland, however, has developed one of the most efficient e-commerce delivery models in the European Union.

There is no official EU ranking that identifies one country as the greenest market for e-commerce delivery. Nevertheless, Poland has the strongest claim thanks to its dense parcel-locker network, widespread consumer adoption and highly consolidated last-mile delivery system.

Why last-mile delivery is an environmental problem

The last mile is often one of the least efficient stages of e-commerce logistics.

Large trucks can transport thousands of parcels between fulfillment centers and regional depots. Once those parcels enter the final delivery stage, they must be distributed across hundreds of individual addresses.

Traditional home delivery can involve:

• Fragmented delivery routes
• Frequent stops and vehicle idling
• Failed delivery attempts
• Repeat journeys
• Increased urban congestion
• Higher emissions per parcel

Parcel lockers help address this problem by allowing carriers to deliver dozens of orders to a single location rather than visiting each customer individually.

This is where Poland has gained a significant advantage.

Poland has Europe’s densest parcel-locker network

Parcel lockers are not a niche delivery option in Poland. They are a central part of the country’s e-commerce infrastructure.

Recent industry estimates indicate that Poland has more than one parcel locker per 1,000 inhabitants, the highest density in Europe. The total national network is estimated at approximately 45,000 to 47,000 automated parcel machines.

InPost is the country’s dominant operator. At the end of the first quarter of 2025, the company operated 25,949 automated parcel machines in Poland, representing annual growth of around 15%.

Competition is also increasing. Allegro, DHL, DPD, Orlen and other operators continue to expand their own locker and pickup-point networks.

This means Polish consumers can frequently find a locker close to their home, workplace, supermarket or daily commuting route.

How parcel lockers reduce delivery emissions

The environmental benefit of parcel lockers is based on consolidation.

A courier delivering 50 parcels to individual homes may need to make dozens of separate stops. The same 50 parcels can potentially be delivered to one or two automated machines.

This can reduce:

• Kilometers driven per parcel
• Delivery vehicle stops
• Time spent idling
• Failed delivery attempts
• Repeat journeys
• Residential traffic congestion

InPost has reported that deliveries to its automated parcel machines generate significantly lower emissions per parcel than home delivery. The company has also estimated that its locker network avoided more than 180,000 tonnes of carbon dioxide emissions in Poland in 2020.

These numbers are based on company calculations rather than a standardized EU methodology, so they should be interpreted carefully. However, the operational principle is clear: delivering many parcels to one location is usually more efficient than delivering them individually.

Consumer behavior strengthens the Polish model

Parcel lockers are not automatically sustainable. If customers drive several kilometers solely to collect an order, part of the emissions advantage can disappear. Locker location and consumer behavior are therefore essential.

Poland performs particularly well because parcel collection is often integrated into everyday journeys.

Industry research suggests that approximately 62% of Polish users collect parcels while already traveling for another purpose. In urban areas, the average distance to a locker has been estimated at around 350 meters.

This makes it more likely that customers will collect parcels while walking, commuting, shopping or traveling home from work.

The density of Poland’s network is therefore one of its greatest strengths. The closer lockers are to consumers, the less likely they are to require a separate car journey.

Fewer failed deliveries

Failed home deliveries create additional emissions and costs. When a customer is unavailable, the carrier may need to attempt delivery again, redirect the parcel or return it to a depot.

Parcel lockers largely eliminate this issue. Once the parcel is deposited, the delivery is complete, and the customer can collect it at a convenient time.

This improves first-attempt delivery rates and allows carriers to organize more predictable and efficient routes.

Sustainability without sacrificing convenience

One reason the Polish model has grown so quickly is that parcel lockers are not only more efficient. They are also convenient.

They offer consumers:

• 24-hour availability
• No need to remain at home
• Flexible collection times
• Contactless access
• Easier returns
• Often lower delivery costs

Poland shows that sustainable delivery models are more likely to succeed when the environmentally preferable option is also the easiest option.

Consumers may choose lockers primarily for convenience, but the result is still a more consolidated and potentially lower-emission delivery network.

A scalable response to growing parcel volumes

Poland is one of Europe’s fastest-developing e-commerce markets.

Polish logistics forecasts suggested that parcel operators could handle approximately 1.34 billion shipments in 2025, compared with around 1.21 billion in 2024.

Managing this growth entirely through home delivery would create additional pressure on roads, fleets and urban areas.

Poland’s out-of-home delivery infrastructure allows the market to absorb rising parcel volumes without requiring an equivalent increase in individual residential delivery stops.

It does not make the entire e-commerce supply chain carbon-free. Fulfillment centers, long-distance transport, packaging, returns and electricity consumption still generate emissions.

However, it provides a scalable way to make the last mile more efficient.

Is Poland officially the EU’s greenest delivery market?

Poland has not been officially recognized as the EU’s greenest country for e-commerce delivery.

There is currently no European index that compares all member states using the same indicators, such as:

• Emissions per parcel
• Electric vehicle adoption
• Locker utilisation
• Failed-delivery rates
• Customer collection distance
• Returns emissions
• Renewable energy use

Countries such as Finland, Sweden, Denmark, Germany and the Netherlands also have strong sustainability credentials.

Nordic markets are advanced in electric delivery fleets and fossil-free fuels, while Germany and the Netherlands have invested heavily in electric vans, cargo bikes and zero-emission urban logistics.

Poland’s strength is different. It has created Europe’s most developed consolidated parcel-delivery ecosystem.

For this reason, it is more accurate to describe Poland as the EU leader in eco-efficient e-commerce delivery infrastructure rather than as the officially greenest delivery country.

What e-commerce companies can learn from Poland?

The Polish model offers several lessons for European retailers and logistics providers.

Make out-of-home delivery visible

Parcel lockers should be offered prominently during checkout instead of appearing as a secondary option.

Prioritize convenient locations

Lockers deliver the greatest environmental benefit when they are close to homes, workplaces, shops and public transport.

Encourage consolidated delivery

Retailers can promote lockers through lower prices, loyalty rewards or clear sustainability information.

Integrate returns

Using the same network for deliveries and returns can reduce home collections and simplify reverse logistics.

Combine lockers with cleaner vehicles

The most sustainable model combines parcel consolidation with electric vans, cargo bikes, renewable electricity and route optimization.

Poland offers a blueprint for Europe’s greener last mile

Poland’s position as a leader in eco-friendly e-commerce delivery is based on structural efficiency rather than a single environmental initiative.

Its dense parcel-locker network reduces the number of stops required to deliver growing volumes of online orders. Widespread consumer adoption also means that lockers are integrated into daily life rather than treated as an occasional alternative.

The system is not completely emission-free, and its environmental performance still depends on vehicle type, locker location and customer behavior.

Nevertheless, Poland offers one of Europe’s clearest examples of how convenience, efficiency and sustainability can support one another.

As e-commerce parcel volumes continue to rise, Poland’s delivery model could become an increasingly important blueprint for building a greener and more scalable European last mile.

The post Poland Emerges as the EU Leader in Eco-Friendly E-Commerce Deliveries appeared first on Cross-Border Magazine.

Customs Clearance Challenges: Why Data Has Become the Foundation of Cross-Border Success

CBM: Customs regulations seem to be becoming more complex every year. What are the biggest customs clearance challenges online retailers are facing today?

Guy Cliffe: Interestingly, the biggest challenge isn't necessarily the regulations themselves—it's how quickly customs requirements are evolving across the world.

Authorities are moving away from paper-based processes and placing far greater emphasis on advance electronic data, automated risk profiling and supply chain transparency. That means retailers need to start thinking about customs much earlier in the fulfillment process.

Businesses are also selling into more international markets than ever before, each with different thresholds, documentation requirements and customs rules. Managing that complexity while still delivering the seamless customer experience consumers expect has become one of the biggest operational challenges in cross-border e-commerce.

The retailers that perform best are those that stop viewing customs as an administrative obligation and start treating it as a strategic part of their international operation.

CBM: Since Brexit, how has the customs landscape changed for retailers selling between the UK and the EU?

Guy Cliffe: Brexit fundamentally changed how goods move between the UK and the European Union. Customs is now part of every shipment. Most businesses have adapted remarkably well, but I still see companies underestimating the importance of customs preparation.

One of the most common mistakes is assuming customs only matters when goods are ready to leave the warehouse. In reality, customs begins with the quality of the product data inside a retailer's own systems. Incorrect commodity codes, incomplete product descriptions or inaccurate customs values all create unnecessary delays, additional costs and poor customer experiences.

Returns are another area that is frequently overlooked. Many retailers are missing opportunities to recover import duties or simplify reverse logistics because customs isn't being considered as part of the overall returns strategy.

CBM: Many retailers struggle with customs delays. What usually causes shipments to be held at the border?

Guy Cliffe: Most delays aren't actually caused by customs authorities. They're caused by the information businesses submit. Missing shipment data, inconsistent documentation, inaccurate classifications, or discrepancies between commercial documents are what typically trigger additional inspections.

As customs authorities increasingly rely on automated risk assessment systems, data quality becomes the deciding factor. Retailers often assume they need a faster logistics solution when, in reality, improving the quality and consistency of their customs data will have a much greater impact.

CBM: Product data seems to be becoming increasingly important. How critical are accurate product descriptions and HS codes?

Guy Cliffe: They're absolutely fundamental. Good customs clearance starts long before a parcel reaches the border. Every product description, HS code, declared value and shipment detail contributes to how customs authorities assess risk.

Generic descriptions like "gift" or "clothing" are no longer sufficient. Retailers that invest in detailed product information don't just reduce delays—they improve compliance, minimize manual intervention and ultimately create a much better customer experience.

CBM: Regulations such as ICS2 are changing customs procedures across Europe. How should retailers prepare?

Guy Cliffe: The most important thing is recognizing that ICS2 isn't a standalone regulation. It's part of a much broader shift towards digital customs. Authorities increasingly expect shipment information before goods even begin their journey.

Retailers should review the quality of their customs data today, work closely with experienced customs partners, and ensure their systems can support different international reporting requirements. Businesses that build flexibility now will adapt far more easily as new regulations continue to emerge.

CBM: How do customs challenges differ between marketplaces and mid-sized online retailers?

Guy Cliffe: Large marketplaces benefit from enormous scale and sophisticated technology, but they also have to manage millions of products from thousands of different sellers. Maintaining consistent customs data at that scale is extremely challenging.

Mid-sized retailers usually have much greater control over their own product information, but often lack dedicated customs expertise or experience entering new international markets. Despite those differences, the fundamentals remain exactly the same. Success depends on accurate data, robust processes and choosing the right customs partner.

CBM: Returns aren't usually associated with customs. Why should retailers think differently?

Guy Cliffe: Returns should be part of every retailer's customs strategy. Every returned item may involve import duties, VAT, and customs procedures. One of the biggest missed opportunities is the recovery of duty.

Many retailers are entitled to reclaim duties on returned goods but simply don't have the processes in place to do so. A well-managed returns operation doesn't just improve customer experience—it improves cash flow and reduces unnecessary costs.

CBM: Technology is transforming customs. Which innovations are having the biggest impact?

Guy Cliffe: Automation is removing much of the manual work that has traditionally slowed customs. Direct integration between retailer systems and customs platforms helps ensure information is captured accurately and submitted consistently.

We're also seeing automated validation tools identify missing or inconsistent data before shipments even reach customs. Looking ahead, intelligent technologies that provide better supply chain visibility and identify compliance risks before goods move will become increasingly valuable.

CBM: Finally, what should retailers prepare for over the next two to three years?

Guy Cliffe: Customs authorities will continue placing greater emphasis on advance electronic data, digital compliance and security screening. Manual processes will continue to disappear, while scrutiny of low-value e-commerce shipments is likely to increase.

The retailers that invest today in robust data, integrated technology and flexible customs processes won't simply remain compliant.They'll be the businesses best positioned to compete internationally while delivering the frictionless customer experience consumers increasingly expect.

The post SPOTLIGHT ON… Guy Cliffe: Director at UKP Worldwide 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.

The European Union’s fintech industry has become a major infrastructure provider for global e-commerce. European companies now process trillions of euros in payments, provide financing to millions of online shoppers, connect merchants to local payment methods, and enable marketplaces to manage sellers, currencies, fraud, and payouts through a single platform.

The industry’s global importance is visible in the numbers:

• European B2C e-commerce turnover reached €842 billion in 2024.
• Adyen processed approximately €1.394 trillion in payments during 2025.
• Klarna facilitated $127.9 billion in gross merchandise volume in 2025.
• Klarna served approximately 118 million active consumers and 966,000 merchants by the end of 2025.
• Mollie provides payment services to more than 250,000 businesses.
• The euro area recorded approximately 77.7 billion non-cash payments in the first half of 2025.
• E-money transactions in the euro area reached approximately €300 billion during the same six-month period.

These figures show that EU fintech is no longer a niche financial-technology sector. It is part of the core infrastructure supporting international digital commerce.

Europe’s e-commerce and fintech market in numbers

European B2C e-commerce turnover increased from €784 billion in 2023 to €842 billion in 2024.

That represented:

• Nominal annual growth of 7%
• Real growth of approximately 4.6% after inflation
• An increase of €58 billion in one year

The expansion of online commerce is also reflected in consumer adoption.

In 2025, approximately 78% of EU internet users purchased goods or services online. In 2015, the equivalent share was approximately 62%.

Online-shopping adoption was particularly high among younger European consumers:

• 90% of internet users aged 25–34 shopped online
• 87% of those aged 35–44
• 84% of those aged 16–24

Fintech companies support this market by connecting shoppers, merchants, banks, card networks and local payment systems.

The volume of European payments is considerably larger than e-commerce turnover alone. The euro area recorded approximately 77.7 billion non-cash payments in the first half of 2025, an increase of about 7.7% compared with the same period one year earlier.

Excluding e-money payments, cards represented approximately 73.9% of the number of non-cash transactions. Credit transfers represented around 19.3%, while direct debits accounted for approximately 3.3%.

This scale provides European payment companies with a large domestic market in which to develop technology before expanding internationally.

Adyen demonstrates the global scale of EU payment infrastructure

Amsterdam-headquartered Adyen is one of the clearest examples of the EU fintech industry’s international impact.

During 2025, Adyen processed approximately €1.394 trillion in payment volume.

Its results included:

• €649 billion processed in the first half of 2025
• €745.3 billion processed in the second half
• €2.36 billion in annual net revenue
• €311 billion in point-of-sale payment volume

Adyen’s 2025 processed volume was approximately 65% larger than the entire €842 billion European B2C e-commerce market reported for 2024.

The comparison is not exact because Adyen processes both online and physical-store transactions. Nevertheless, it demonstrates the scale achieved by a single European fintech company.

Adyen provides payment infrastructure to international retailers, digital platforms, subscription companies and marketplaces. Its services can include:

• Online and in-store payments
• International and local payment methods
• Multi-currency processing
• Recurring transactions
• Fraud detection
• Payment authentication
• Marketplace payments
• Merchant payouts
• Financial accounts
• Card issuing

Adyen’s platform business also provides evidence of the growth of embedded finance.

In the third quarter of 2025, its platform net revenue reached €68.6 million, increasing by 50% year over year.

This suggests that marketplaces and software platforms increasingly want to integrate payments and financial services directly into their own products.

European BNPL has changed global online checkout

Sweden’s Klarna has helped turn buy now, pay later from a regional payment option into a global e-commerce product. Klarna reported $127.9 billion in gross merchandise volume in 2025, representing 22% annual growth.

By the end of that year, Klarna had:

• Approximately 118 million active consumers
• Around 966,000 merchants
• Operations across numerous European and international markets

By the first quarter of 2026, the company reported:

• 119 million active consumers
• More than one million merchants
• Quarterly gross merchandise volume of $33.7 billion
• Quarterly revenue of $1 billion
• GMV growth of 33% year over year

Klarna’s merchant network grew by approximately 49% in the year leading to the first quarter of 2026.

Its expansion shows how an EU fintech model can influence consumer expectations in markets such as the United States.

BNPL allows customers to postpone payment or divide the purchase price into installments. For merchants, it may reduce the immediate affordability barrier associated with higher-value purchases.

However, performance varies by market and product category. BNPL does not automatically guarantee higher conversion or average order values for every merchant.

The sector also faces increased scrutiny concerning consumer debt, affordability assessments and the use of multiple credit providers.

EU fintech makes cross-border e-commerce easier

International e-commerce requires merchants to manage more than card acceptance.

Businesses selling across borders must handle:

• Local payment preferences
• Currency conversion
• International acquiring
• Settlement currencies
• Refunds
• Fraud prevention
• Seller verification
• Regulatory compliance
• International payouts
• Financial reconciliation

EU fintech companies increasingly combine these capabilities into a single integration.

For example, an international merchant selling across Europe may need to offer:

• iDEAL in the Netherlands
• Bancontact in Belgium
• Bizum in Spain
• SEPA Direct Debit
• Local bank transfers
• Klarna
• International cards
• Apple Pay
• Google Pay
• Account-to-account payments

Dutch fintech Mollie provides payment services to more than 250,000 businesses across approximately 30 countries.

The company reported net-revenue growth of 29% in 2025 and expanded into 12 additional markets.

Payment aggregation is especially important for small and medium-sized businesses. Without fintech providers, merchants may need separate contracts, banking relationships and technical integrations for every payment method and market.

By centralizing these services, fintech reduces the cost and complexity of international expansion.

Open banking is creating an alternative to card payments

The EU’s revised Payment Services Directive, PSD2, established the regulatory basis for open banking.

PSD2 allowed licensed providers, with customer permission, to access banking information or initiate payments directly from bank accounts.

For e-commerce, this created an alternative to conventional card payments.

Account-to-account payments may offer merchants:

• Faster confirmation
• Reduced dependence on card networks
• Potentially lower transaction costs
• Lower exposure to card chargebacks
• Direct bank-based payment authorization
• Greater suitability for high-value purchases

Open banking is particularly significant because international card schemes still dominate much of Europe’s payment market.

Approximately two-thirds of euro-area card transactions are processed through non-European companies. Several euro-area countries remain entirely dependent on international card schemes.

The development of European account-to-account systems could therefore affect both payment costs and Europe’s financial independence.

Instant payments could accelerate e-commerce settlement

European instant-payment rules are intended to make euro transfers available within seconds, at any time of day.

For e-commerce businesses, instant payments could improve:

• Cash flow
• Payment confirmation
• Marketplace seller payouts
• Supplier payments
• Refund processing
• Treasury management

The opportunity is substantial because credit transfers already account for approximately 19.3% of euro-area non-cash transactions by volume, excluding e-money. Instant settlement could be particularly valuable for marketplaces that collect customer funds and distribute money to thousands of independent sellers.

Cards are unlikely to disappear. They remain widely accepted and provide established consumer protections, recurring-payment functionality and dispute mechanisms. However, instant bank payments could capture a larger share of e-commerce transactions where cost, speed or transaction value is particularly important.

E-money transactions reached €300 billion in six months

E-money has become another significant component of European digital commerce.

During the first half of 2025, the euro area recorded:

• Approximately 4.7 billion e-money payment transactions
• Transaction growth of 10.7% year over year
• A total transaction value of approximately €300 billion
• Value growth of 13.2%

E-money accounts represented approximately 98% of the number and 97% of the value of e-money transactions.

This infrastructure supports:

• Digital wallets
• Prepaid accounts
• Marketplace seller balances
• Merchant settlement accounts
• Multi-currency products
• Embedded financial accounts
• Business cards
• Platform payouts

For marketplaces, e-money infrastructure makes it possible to accept a consumer payment, deduct a commission, reserve funds for refunds, and distribute the remainder to one or several sellers.

These processes would be difficult to manage at scale using conventional bank transfers alone.

Fintech is turning marketplaces into financial-service providers

Marketplace and software platforms increasingly use fintech infrastructure to offer financial products directly to their merchants.

These services can include:

• Integrated payment processing
• Seller accounts
• Automated payouts
• Business cards
• Working-capital financing
• Foreign exchange
• Fraud prevention
• Identity verification
• Revenue reporting

This market is growing rapidly.

Adyen’s platform net revenue increased by 50% in the third quarter of 2025. In the first quarter of 2026, its platform revenue reached approximately €75 million, up 35% year over year, or 40% at constant currency.

Embedded finance allows platforms to generate revenue from payments while strengthening their relationship with merchants.

A business using the platform may no longer need to obtain separate services from a bank, payment processor, lender and card issuer. The platform can combine these capabilities through fintech APIs.

EU payment regulation has influenced global fraud prevention

The EU’s Strong Customer Authentication requirements changed how online payments are verified.

Many electronic transactions now require at least two independent authentication elements, such as:

• A password
• A registered mobile device
• A banking application
• A fingerprint
• Facial recognition

This encouraged global adoption of:

• 3-D Secure 2
• Biometric authentication
• Device recognition
• Risk-based authentication
• Transaction-risk analysis
• Banking-app approvals

The European Central Bank and European Banking Authority found that Strong Customer Authentication was effective against important forms of card fraud.

Nevertheless, fraud remains a major financial problem.

Across the EU and European Economic Area, losses reached:

• €2.2 billion from credit-transfer fraud in 2024
• €1.329 billion from card-payment fraud in 2024

Credit-transfer fraud losses increased by approximately 16% year over year, while card-fraud losses increased by around 29%.

Consumers bore approximately 85% of credit-transfer fraud losses, largely because many cases involved authorized payment scams. In these cases, customers were manipulated into approving the transaction themselves.

As a result, fintech fraud prevention is moving beyond stolen-card detection. Modern systems analyze device behavior, account history, customer location, payment values and behavioral patterns in real time.

The measurable impact on global e-commerce

EU fintech’s global e-commerce impact can be summarised through several major figures:

These numbers do not measure a single direct contribution to global e-commerce. No official statistical framework currently calculates exactly how much worldwide online revenue is generated by EU fintech.

However, the figures demonstrate the industry’s scale across payment processing, consumer finance, merchant acceptance, e-money and marketplace infrastructure.

The EU fintech industry has become a fundamental part of global e-commerce infrastructure.

Adyen processed approximately €1.394 trillion in 2025. Klarna facilitated $127.9 billion in annual merchandise volume and reached 119 million active consumers. Mollie serves more than 250,000 businesses, while euro-area e-money transactions reached approximately €300 billion in only six months.

These companies and payment systems help merchants:

• Enter new countries
• Accept local payment methods
• Manage several currencies
• Offer installment payments
• Prevent fraud
• Process marketplace payouts
• Embed financial services
• Access sales-based financing

The EU’s influence also extends beyond company performance. PSD2, open banking and Strong Customer Authentication have shaped payment regulation, security and financial innovation internationally.

Europe still faces challenges, including fragmented national payment habits, rising fraud losses and dependence on international card networks. Nevertheless, the numbers show that EU fintech has moved well beyond its regional market.

The post EU Fintech Industry Impact on Global E-commerce appeared first on Cross-Border Magazine.

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.

The post Uber Pauses Most of Its European Delivery Expansion as Delivery Hero Takeover Talks Continue appeared first on Cross-Border Magazine.

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.

The post EU’s €3 fee on low-value e-commerce parcels is now in force appeared first on Cross-Border Magazine.

Cross-border logistics is often described in terms of infrastructure, capacity, and technology. For Ove Dokk, International Business Development Manager at GLS, the differentiator is more human: proximity to customers, entrepreneurial thinking, and the ability to make global shipping feel local.

With a career shaped by experience across major logistics organizations, Dokk brings a perspective grounded in both operational scale and customer intimacy — a balance that increasingly defines success in international parcel delivery.

A Career Built Around Customer-Centric Logistics

Dokk’s professional journey in logistics has exposed him to both highly structured global players and more agile operational environments. That contrast has shaped his appreciation for responsiveness and adaptability.

At GLS, he sees a company that still carries an entrepreneurial spirit despite its size. Over the years, the organization has retained what he describes as a startup-like mindset: quick decision-making, openness to experimentation, and close collaboration with customers.

This approach, he notes, is particularly relevant in e-commerce logistics, where growth can be rapid and operational requirements shift constantly.

Global Reach, Delivered Through Local Expertise

One of the themes Dokk consistently emphasizes is the balance between international scale and local execution.

GLS operates a unified cross-border parcel network spanning Europe and North America, with shared operational standards for pickup, sorting, transport, and delivery. Yet the company deliberately runs its international business through strong national teams that understand local regulations, customer expectations, and market realities.

For Dokk, this dual structure is essential:

Global infrastructure ensures consistency and visibility, while local expertise ensures service relevance. Customers benefit from predictable cross-border performance without losing the responsiveness of local support.

Making International Shipping Feel Domestic

A central ambition Dokk highlights is simplifying cross-border logistics so that it resembles domestic shipping in reliability and ease.

Operational resilience plays a key role. GLS maintains tens of thousands of delivery vehicles and thousands of nightly hub-to-hub truck movements, ensuring flexibility when volumes fluctuate or routes shift.

Equally important is network integration. The strengthening of transatlantic connections between GLS Europe and GLS US has enabled more direct parcel flows, competitive transit times, and improved tracking transparency — features traditionally associated with domestic shipping.

From the customer perspective, complexity is reduced, and international shipping becomes less intimidating.

Supporting SMEs Through Growth and Expansion

Dokk speaks frequently about small and medium-sized enterprises, which form a large portion of GLS’ customer base. Many SMEs lack dedicated logistics teams or deep operational resources, making international expansion challenging.

His focus is on removing friction.

Access to a large road-based parcel network, standardized international services, extensive pickup-point infrastructure, and integrated returns solutions allow smaller merchants to scale without building logistics capabilities internally.

He sees logistics not simply as transportation but as an enabler of business growth. When handled correctly, it removes barriers to entering new markets.

Returns, Convenience, and Customer Confidence

Returns management is another area where Dokk sees logistics shaping customer experience directly. In sectors such as fashion, return rates can be significant, and the ease of returns often determines where consumers choose to shop.

Simplified processes — QR code returns, local drop-off points, automated label generation — reduce friction for both consumers and merchants. At the same time, improved visibility helps retailers manage inventory moving back through the supply chain.

He also acknowledges evolving consumer awareness around sustainability, which is gradually influencing return behaviors and logistics strategies alike.

A Global Expansion

GLS continues to expand outside Europe, particularly in the United States, where operations now extend beyond the West Coast into additional states, including Texas. Asia is served through partnerships, allowing European customers access to key markets while maintaining GLS service standards.

GLS also recognizes the evolving needs of its customers and is continuing to expand into value-added services to complement its core parcel offerings by adding fulfilment solutions and freight services across GLS countries to provide end-to-end logistics support. By integrating these services, GLS aims to help merchants manage inventory, streamline order processing, and meet the demands of cross-border e-commerce.

This dual approach—reinforcing the parcel network while expanding into adjacent logistics services—allows GLS to deliver greater value to its customers, supporting their growth and ensuring the flexibility required in today’s fast-moving retail landscape.

Out-of-Home Delivery and Changing Consumer Behavior

Consumer expectations around delivery flexibility are evolving quickly, and Dokk sees out-of-home delivery — parcel shops and lockers — as a defining trend.

Adoption varies widely across Europe. Nordic markets show strong locker usage, while Southern European countries still favor home delivery. GLS is investing heavily in expanding pickup and drop-off networks to accommodate these regional differences.

For Dokk, convenience, efficiency, and environmental considerations all converge in this shift. Consolidated deliveries reduce urban congestion while giving consumers greater control over when and where they receive parcels.

Technology as an Enabler, Not the Headline

While technology underpins most modern logistics operations, Dokk frames it as an enabler rather than a differentiator in itself.

GLS’ API-driven infrastructure allows customers to integrate shipping directly into their systems — automating label creation, pickup booking, returns processing, parcel tracking, and customs data exchange. Crucially, this technological capability is supported by local teams providing IT assistance in customers’ own languages.

This combination of digital integration and human support reflects Dokk’s broader philosophy: technology should simplify logistics, but relationships still matter.

An Entrepreneurial Mindset in a Global Industry

Looking ahead, Dokk believes logistics providers must remain adaptable. Regulatory changes, evolving e-commerce patterns, sustainability concerns, and shifting consumer expectations will continue to reshape cross-border shipping.

What he sees as GLS’ strength is its ability to combine scale with agility — maintaining a global network while preserving the entrepreneurial culture that allows teams to respond quickly to customer needs.

For Dokk personally, the objective remains consistent: helping businesses expand internationally while keeping logistics straightforward, reliable, and close to the customer.

The post SPOTLIGHT ON...Ove Dokk, International Business Development Manager for GLS appeared first on Cross-Border Magazine.

The European Union is changing the way low-value e-commerce parcels from outside the bloc are treated at customs. For online retailers, marketplaces, logistics providers, fulfillment operators, and non-EU sellers shipping directly to European consumers, this is not just a minor customs update. It is part of a broader regulatory shift that connects customs duties, VAT, product safety, marketplace liability, digital platform obligations, and import data quality.

The most visible change is the removal of the customs duty exemption for imported goods valued at up to €150. From 1 July 2026, low-value e-commerce consignments entering the EU from outside the bloc will face a temporary €3 customs duty per item category. This temporary system is expected to remain in place until 1 July 2028, when the EU plans to move to a more comprehensive customs data model for e-commerce and apply standard customs tariffs based on the type of product.

For businesses, the message is clear: low-value cross-border e-commerce into the EU is becoming more regulated, more data-driven, and more compliance-heavy.

Why the EU is changing the rules

The €150 customs duty exemption was originally designed to simplify customs processes for small-value shipments. It made sense in a world where low-value parcels were relatively limited in volume and where collecting small amounts of duty could cost more than the revenue collected.

That world no longer exists.

The growth of direct-to-consumer e-commerce has resulted in billions of low-value parcels entering the EU each year, many shipped directly from third countries to individual consumers. EU institutions argue that this has created unfair competition for EU-based retailers, because traditional importers and domestic sellers must comply with customs, tax, safety, and regulatory obligations, while some low-value direct imports have benefited from lighter treatment.

The EU also links the reform to wider concerns: undervaluation, artificial splitting of shipments to stay below the €150 threshold, unsafe products, counterfeit goods, weak traceability, and limited customs visibility over high-volume e-commerce flows.

The reform is therefore not only about collecting duties. It is about shifting low-value e-commerce into a stricter customs and compliance framework.

The central change: the end of the €150 customs duty exemption

Until 30 June 2026, goods imported into the EU with an intrinsic value not exceeding €150 can benefit from customs duty relief. They are still subject to VAT and customs declarations, but generally not to customs duties.

From 1 July 2026, this changes. Low-value imported e-commerce goods will no longer benefit from the same duty-free treatment. Instead, the EU will apply a temporary €3 customs duty.

The duty applies to low-value consignments imported from outside the EU with an intrinsic value of up to €150. Businesses should understand this as a major change to landed-cost calculation. Products that previously entered without customs duty may now carry an additional customs cost even when their value remains below €150.

The temporary €3 customs duty

The temporary duty is one of the most important immediate changes for e-commerce operators. From 1 July 2026, the EU will apply a €3 customs duty to low-value consignments imported from outside the EU.

However, this is not simply a €3 fee per parcel. The duty is applied per item category, based on customs classification.

That distinction matters. If a parcel contains several products in the same customs category, the duty may apply only once. If it contains products that fall under different customs categories, the duty may apply more than once.

For example, if a parcel contains several T-shirts in the same item category, the temporary duty may be €3. If a parcel contains a T-shirt and a watch, the duty may be €6 because there are two different item categories.

This means that e-commerce businesses need to understand how their products are classified. Product assortment, bundling, SKU structure, customs codes, and checkout-level landed-cost calculations will become more important.

The 2026–2028 transition period

The €3 duty is designed as a temporary bridge. It is expected to apply from 1 July 2026 until 1 July 2028.

The reason for this temporary system is that the EU’s wider customs reform will take time to implement. The long-term ambition is to create a new EU Customs Data Hub for e-commerce, enabling customs authorities to use better data earlier in the transaction and apply normal customs duties more effectively.

Once the new system is in place, the temporary flat duty should be replaced by normal customs tariffs based on the product category. This means businesses should not treat the €3 duty as the final destination. It is a transitional measure before a more granular customs model.

Product Identifiers: the new data requirement

Another major change is the introduction of Product Identifiers for imported distance sales.

Product Identifiers can be provided voluntarily from 1 July 2026 and become mandatory from 1 November 2026. Their purpose is to improve traceability, product identification, customs risk analysis, and enforcement against unsafe or non-compliant goods.

For businesses, this means customs data will need to become more precise. A generic description such as “clothes,” “accessories,” or “electronics” will not be enough for modern compliance. Sellers, platforms, and logistics partners will need to provide data that enables customs and market surveillance authorities to identify the product's actual nature.

This will affect product information management, marketplace onboarding, customs declaration systems, SKU data, supplier documentation, and fulfillment workflows.

VAT still applies: the role of IOSS

The removal of the customs duty exemption does not replace VAT rules. VAT and customs duty are separate issues.

Since the EU VAT e-commerce package, all imported goods, including low-value goods, are subject to VAT. For distance sales of imported goods with a value not exceeding €150, businesses may use the Import One Stop Shop (IOSS) to simplify VAT declaration and payment.

IOSS allows sellers or marketplaces to collect VAT at the point of sale and declare it through a single portal, rather than forcing consumers to pay import VAT upon delivery. For e-commerce businesses selling to EU consumers from outside the EU, IOSS remains highly relevant.

However, the new customs duty rules mean that businesses cannot think only in terms of VAT. From July 2026, low-value goods may require both VAT treatment and customs duty treatment, even if they remain under the €150 threshold.

The difference between customs duty, VAT, and the proposed handling fee

Businesses should clearly separate the three concepts. Customs duty is a charge applied to imported goods. The new temporary €3 duty is a customs duty.

VAT is a consumption tax. Low-value imported goods are already subject to VAT, and IOSS is a mechanism to simplify VAT collection for imported distance sales up to €150.

The handling fee is a separate policy discussion. The European Commission has discussed the idea of a handling fee to help cover the cost of customs controls, product safety checks, and market surveillance. However, this should not be confused with the confirmed temporary €3 customs duty.

For now, businesses should treat the €3 duty as confirmed and operationally relevant from 1 July 2026. The handling fee should be monitored separately.

The legislation businesses need to know

The low-value parcel reform sits inside a wider legal framework. E-commerce businesses should not look at the €3 duty in isolation. The relevant legislation includes customs law, VAT law, product safety law, market surveillance rules, and digital marketplace rules.

Union Customs Code

The Union Customs Code is the foundation of EU customs law. It sets the general rules and procedures for goods entering and leaving the customs territory of the Union.

For e-commerce businesses, the Union Customs Code matters because it governs customs declarations, import procedures, customs representation, data requirements, and the treatment of goods released for free circulation.

The new low-value parcel rules operate within this customs framework. Businesses importing into the EU must ensure that their customs declarations, product descriptions, values, origin data, and classification codes are accurate.

Council Regulation on customs duty relief

The previous relief system for goods of negligible value allowed goods with an intrinsic value not exceeding €150 per consignment to be relieved from customs duties.

The new reform removes that relief for low-value e-commerce imports and, during the transition period, replaces it with a temporary €3 customs duty.

Businesses that previously built pricing or fulfillment models around the €150 duty-free threshold should now reassess those models. The old threshold will no longer provide the same customs advantage.

Commission Implementing Regulation on the temporary duty

The implementing rules define how the temporary €3 duty is applied in practice. This includes how low-value goods are treated, how item categories are identified, and how customs declarations should reflect the new duty.

For businesses, this is where operational compliance becomes important. The question is not only whether a product is under €150. The business must also know how the product is classified, whether the consignment contains multiple item categories, and how the data is transmitted to customs.

EU VAT e-commerce package and IOSS

The EU VAT e-commerce package changed the VAT treatment of cross-border online sales. It removed the old low-value VAT exemption and introduced simplification schemes, including IOSS.

For imported goods sold to EU consumers, IOSS is particularly important when the consignment value is below €150. It allows VAT to be collected at checkout and remitted through a simplified system.

E-commerce businesses should review whether they use IOSS directly, through an intermediary, or through a marketplace. They should also confirm whether their VAT logic, checkout pricing, invoices, and customs data are aligned.

General Product Safety Regulation

The General Product Safety Regulation is central for businesses selling consumer products in the EU. It requires that products placed or made available on the EU market are safe.

For low-value e-commerce, this is especially important because customs reform is partly driven by concerns about the safety of imported goods. Cheap products are not exempt from safety rules. A low price or low customs value does not reduce the obligation to comply with EU product safety requirements.

Businesses selling to EU consumers must ensure that products are safe, properly labeled, traceable, and supported by the required documentation. Online marketplaces also face stronger expectations around product safety information and trader traceability.

Market Surveillance Regulation

The Market Surveillance Regulation strengthens enforcement of EU product rules. It is particularly relevant for products covered by EU harmonization legislation, such as CE-marked goods.

For many regulated products, there must be an economic operator established in the EU who can be contacted by authorities and who holds or can access the necessary compliance documentation.

This matters for non-EU sellers. Selling directly to EU consumers does not eliminate the need for EU compliance. Products entering the EU may be stopped, checked, removed, or sanctioned if the required responsible operator, documentation, markings, or safety information are missing.

Digital Services Act

The Digital Services Act creates obligations for online platforms and marketplaces. For marketplaces that allow consumers to conclude distance contracts with traders, the DSA includes obligations regarding trader traceability.

This means marketplaces must collect and verify certain information from traders before allowing them to sell to consumers in the EU. If marketplace providers become aware of illegal products or services, they may also have obligations to act, inform affected consumers, identify the seller, and provide information on redress.

For marketplaces, the DSA connects platform governance with product compliance. It is no longer enough to say that a marketplace merely hosts third-party listings. EU rules increasingly expect marketplaces to know who is selling, what is being sold, and how illegal or unsafe products are handled.

Product-specific legislation

Beyond general customs and marketplace rules, businesses must also check product-specific EU legislation. The exact rules depend on the product category.

Products such as toys, electronics, cosmetics, batteries, food supplements, medical devices, machinery, textiles, chemicals, and personal protective equipment may be subject to additional EU rules. These may include CE marking, technical documentation, conformity assessment, safety warnings, labeling, restricted substances, responsible person requirements, and post-market surveillance obligations.

The low-value nature of a shipment does not remove these obligations. A €10 toy, a €15 charger, or a €5 cosmetic product can still fall under strict EU safety and compliance rules.

Packaging, waste, and extended producer responsibility

E-commerce businesses should also consider environmental and packaging obligations. Depending on the product and the destination EU member state, businesses may have obligations related to packaging registration, waste management, batteries, electrical and electronic equipment, textiles, or other extended producer responsibility schemes.

These rules are not created by the low-value parcel reform, but they form part of the wider compliance environment for e-commerce businesses selling into the EU.

For cross-border sellers, this is often one of the most overlooked areas. Customs clearance does not mean the business has satisfied all environmental or producer responsibility obligations.

What businesses should do now

The first step is to map all EU-bound shipments with an intrinsic value under €150. Businesses should identify which products currently benefit from the customs duty exemption and calculate how the temporary €3 duty will affect margins, pricing, shipping strategy, and checkout presentation.

The second step is to review product classification. Since the duty applies to each item category, incorrect classification can lead to cost errors, customs delays, or compliance risks. Businesses should review HS codes, TARIC codes, product descriptions, and the quality of customs data.

The third step is to prepare for Product Identifiers. Product data should be structured, consistent, and available across the systems used by the seller, marketplace, fulfillment provider, customs broker, and carrier.

The fourth step is to check VAT and IOSS arrangements. Businesses should confirm whether VAT is collected at checkout, who is responsible for IOSS reporting, and whether the customs declaration correctly reflects the VAT treatment.

The fifth step is to review product safety and compliance documentation. Businesses should confirm that products sold to EU consumers meet applicable EU safety rules, labeling requirements, responsible person requirements, CE marking obligations, and documentation requirements.

The sixth step is to review marketplace contracts and responsibilities. Sellers using marketplaces should understand whether the marketplace handles VAT, customs data, Product Identifiers, trader verification, product safety checks, or only part of the process.

The seventh step is to update pricing and consumer communication. If the new customs duty affects final prices, delivery fees, or checkout charges, businesses should avoid surprises for consumers. Hidden import costs can damage conversion rates and increase returns, complaints, and refused deliveries.

Why this matters beyond customs

The low-value parcel reform is part of a broader shift in EU policy. The EU is moving away from a model where millions of small direct imports can enter the market with limited scrutiny. Instead, the direction of travel is toward earlier data, stronger traceability, clearer responsibility, and more active enforcement.

For e-commerce businesses, the compliance burden is moving upstream. Customs, VAT, product safety, marketplace governance, and consumer protection must be considered before the product is sold, not only when the parcel reaches the border.

This will favor businesses that have strong product data, reliable suppliers, transparent pricing, and robust compliance systems. It will create challenges for sellers relying on low prices, weak product documentation, generic descriptions, unclear product origin, or fragmented fulfillment processes.

Main takeaway for e-commerce businesses

The EU’s new low-value parcel rules will make cross-border e-commerce in the EU more demanding. From 1 July 2026, the €150 customs duty exemption will no longer provide the same advantage for imported low-value goods. A temporary €3 customs duty per item category will apply until the EU’s new customs data system is ready.

But the real issue is bigger than €3. Businesses selling into the EU must prepare for a compliance environment in which customs data, VAT treatment, product safety, marketplace accountability, and product traceability are increasingly interconnected.

Any e-commerce business shipping low-value goods into the EU should act now: review product classification, prepare Product Identifiers, check IOSS and VAT processes, strengthen product compliance, and update landed-cost calculations before the new rules take effect.

The post A Practical Guide to the EU’s New Low-Value Parcel Rules for E-Commerce Businesses appeared first on Cross-Border Magazine.

Jeroen Leenders (CBM): Today, we are looking back at a massive transformation. Over the last twenty-five years, the global logistics and supply chain sector has evolved from a paper-heavy, localized industry into a hyper-connected, tech-driven ecosystem.

Few organizations embody this shift better than Spring GDS, which is celebrating its 25th anniversary this year, and has successfully reinvented itself from the traditional mail divisions of TNT and PostNL into a premier international e-commerce specialist.

Joining us today are regional leaders and commercial directors from Spring GDS Italy and Spain to share their journey. Let’s start at the beginning.

Jeroen Leenders (CBM): What did the industry look like when you first stepped into it?

Spring GDS Spain (José Ángel Daza Martinez): When I entered the industry twenty-five years ago, international logistics was primarily a "mail business." We operated in a framework that relied heavily on physical sorting and the sprawling infrastructure of traditional networks like TNT. In countries like Spain and Italy, operations were completely decentralized. We had localized offices across regions like Madrid, Barcelona, Valencia, and the Canary Islands just to handle physical letters and documents. There was no real-time data; an item arrived when it arrived.

Jeroen Leenders (CBM): That sounds like a completely different world. When did the turning point occur?

Spring GDS Italy (Gabriele Bavera): The real paradigm shift happened about fifteen years ago. The structural decline of paper mail coincided with an unprecedented boom in online shopping, forcing a complete overhaul of our corporate DNA. We can actually break this historical transition down into three distinct phases:

1. The Traditional Postal Era: Characterized by physical paper mail, a total absence of IT tracking, and procurement conversations held at a low operational level.
2. The Transition Period: The rise of basic scanning technologies, the shift from letters to small packets, and rapidly changing client profiles.
3. The Modern E-Commerce Era: Our current landscape, driven by hyper-connected API integrations, real-time data streams, artificial intelligence (AI), and strategic consultation at the executive level.

Moving into this modern era required a massive technological leap. We had to build complex IT infrastructures capable of handling real-time track and trace and direct API integrations with storefronts like PrestaShop or Magento.

Jeroen Leenders (CBM): Making that shift couldn't have been easy for the workforce or your clients. How did you manage that transition?

Spring GDS Spain (José Ángel Daza Martinez): It was an intense internal and external challenge. Logistical teams accustomed to scanning bags of mail suddenly had to understand web integrations and digital checkout ecosystems. It took months of bi-monthly training sessions to elevate our staff's competencies.

Commercially, the landscape shifted entirely. In the postal era, our sales reps negotiated with low-level procurement assistants looking for the cheapest per-kilo rate for letters. Today, logistics is a core pillar of a retailer's business strategy. Suddenly, we were consulting directly with corporate founders and CEOs, because a failure in shipping meant a direct failure in customer retention. We transformed from a simple vendor into a strategic growth consultant.

Jeroen Leenders (CBM):  It’s well known that the pace of digitalization varied across Europe. How did regional differences impact this journey?

Spring GDS Italy (Gabriele Bavera): Smaller, densely populated countries like the Netherlands and highly structured markets like Germany were early adopters of advanced domestic e-commerce networks. Southern European markets like Italy and Spain faced unique geographic and infrastructural hurdles during the early digital wave. We had to deal with extended delivery times and complex regional address systems. However, the rapid expansion of international e-commerce triggered an impressive convergence.

Jeroen Leenders (CBM):  Looking at this, the shift from raw speed to predictability is fascinating. Can you tell us more about the evolution of the so-called "Amazon Effect"?

Spring GDS Spain (José Ángel Daza Martinez): During the initial e-commerce boom, consumer expectations were hyper-focused on raw speed. The rapid rise of Amazon Prime conditioned the public to expect purchases instantly. Sellers believed that if they couldn't deliver across borders within 24 to 48 hours, they would lose the sale to domestic competitors.

We challenged this assumption by offering transparent, reliable cross-border options that took three to four days but cost up to 50% less than express couriers. That completely changed the mindset of merchants and consumers. Today, predictability dominates. Modern online shoppers value knowing exactly when a package will arrive. If a delivery is guaranteed to arrive in exactly four days, consumers will choose that option, especially since it represents an economical and sustainable choice.

Jeroen Leenders (CBM):  Let’s talk about geopolitical disruption. How did Spring GDS handle major regulatory shifts, like Brexit?

Spring GDS Spain (José Ángel Daza Martinez): When the UK voted for Brexit, it sent shockwaves through the industry. For many European logistics firms, the reintroduction of hard borders, complex customs declarations, and tax adjustments felt like an existential threat. Many carriers scaled back or suspended their UK operations.

We viewed Brexit as an ideal opportunity to demonstrate the value of an asset-light, agile business model. By investing heavily in automated customs solutions and tax compliance software, we kept the UK market completely open for European merchants while others pulled back. Today, despite the friction of operating outside the EU single market, the UK remains one of our most profitable and high-volume trade lanes. It proved that mastering regulatory complexity is a powerful differentiator.

Jeroen Leenders (CBM):  To make these complex cross-border solutions work efficiently, you can’t just target anyone. What does Spring GDS’s Ideal Customer Profile (ICP) look like today?

Spring GDS Italy (Gabriele Bavera): We have moved entirely away from one-size-fits-all shipping. Our network is designed around a highly specific ICP. First, we look for market maturity—merchants who have been operating for at least four to five years and understand digital integrations. Second, we look for international ambition—retailers who view domestic sales as a saturated commodity and look to cross-border markets for true growth.

Finally, from an operational standpoint, we thrive on parcel density. The ideal retail profile ships compact, high-density products, such as cosmetics, apparel, fashion accessories, and small consumer electronics, generally weighing sub-1kg to 2kg maximum. When thousands of these small parcels are consolidated into our large pallet boxes, it maximizes spatial efficiency across our long-haul networks. This allows us to lower per-unit shipping costs and pass those savings directly back to the merchant.

Jeroen Leenders (CBM):  An operation like this requires incredible dedication. One thing that stands out about Spring GDS is the long-term retention of its team. In a high-stress industry, how do you maintain this?

Spring GDS Spain (José Ángel Daza Martinez): It comes down to corporate culture. Traditional corporate structures, particularly historical frameworks in Southern Europe, were often rigid and slow to reward talent. Adopting a flat, modern corporate culture—pioneered by our Dutch parent organization, PostNL—served as a massive competitive advantage.

We heavily encourage internal mobility. Personally, I started my career in billing, transitioned into finance, moved to commercial pricing, stepped into active sales, and eventually assumed a regional leadership role. This multi-disciplinary background ensures that our leadership team intimately understands every single moving part within the supply chain.

Jeroen Leenders (CBM):  How does that culture translate into customer value?

Spring GDS Italy (Gabriele Bavera): A culture built on direct communication and operational transparency fosters rapid innovation. When employees are given the freedom to voice strategic opinions openly, the organization adapts to market disruptions far more effectively than a traditional, top-down hierarchy. Our clients interact with highly motivated, knowledgeable logisticians who view their role as a long-term consultancy rather than a transactional job.

Jeroen Leenders (CBM):  Looking ahead, what do the next five years promise for the logistics landscape?

Spring GDS Spain (José Ángel Daza Martinez): The industry is currently facing a massive convergence of consumer pressure, regulatory mandates, and technological breakthroughs. The most significant operational shift underway is the rapid transition from home delivery to Out-of-Home (OOH) networks, such as automated parcel lockers and local retail pick-up points.

Home delivery is notoriously inefficient; failed first-delivery attempts increase carbon emissions and strain carrier profitability. By consolidating hundreds of deliveries into a single automated locker location, we drastically lower operational costs, and consumers get the ultimate flexibility to pick up their packages whenever it suits them. Within the next three years, OOH delivery will become the standard baseline option for cross-border e-commerce. Traditional home delivery will morph into a premium, high-cost luxury service.

Jeroen Leenders (CBM): What about the changes happening behind the scenes, inside the fulfillment centers?

Spring GDS Italy (Gabriele Bavera): The integration of advanced robotics, autonomous sorting systems, and artificial intelligence is no longer optional. As regulatory frameworks like the EU's Import One-Stop Shop (IOSS) continue to evolve, our networks must process massive amounts of customs data instantly. AI-driven routing algorithms will optimize long-haul transportation lanes in real-time, factoring in border congestion and fuel efficiency.

Furthermore, the very definition of "cross-border" is changing. To meet sustainability targets and minimize carbon footprints, the industry is shifting toward a decentralized fulfillment model. Driven by advanced data analytics, merchants will strategically position their inventory in localized fulfillment hubs across various destination countries before the consumer even places an order. The future of cross-border logistics is not about moving individual packages over thousands of miles at the last minute; it is about utilizing data to predict demand, moving inventory in bulk sustainably, and executing the final delivery over the shortest possible distance.

Jeroen Leenders (CBM):  Fascinating insights. To conclude, it seems the era of simply selling a shipping rate per kilogram is officially over. Success belongs to logistics providers who operate as true strategic partners. Thank you both for your time and for sharing the incredible journey of Spring GDS. 

The post The Evolution of Cross-Border E-Commerce: An Interview with the Voices of Experience within Spring GDS appeared first on Cross-Border Magazine.