Amazon has signed a global strategic supply agreement with warehouse automation specialist AutoStore, establishing a framework that could allow the e-commerce giant to deploy AutoStore technology across its international fulfillment network.

AutoStore announced the agreement on 13 August 2026 and set the commercial terms for Amazon to procure AutoStore products and automation solutions globally. However, AutoStore stressed that the agreement does not currently include any firm purchasing commitments.

The deal nevertheless represents a significant development for the warehouse automation sector, bringing together one of the world's largest e-commerce fulfillment operators and one of the most established providers of cube-based automated storage and retrieval technology.

A global framework for future Amazon automation

Under the agreement, AutoStore will have a framework through which Amazon can purchase its systems and solutions for facilities around the world.

The distinction between a supply agreement and an actual order is important. AutoStore has not disclosed any guaranteed volumes, deployment locations, investment values or implementation timetable.

Instead, the agreement effectively lays the commercial foundation for future procurement should Amazon decide to deploy AutoStore technology at additional fulfillment sites.

AutoStore described the agreement as a global framework covering its products and solutions, while confirming that no purchase commitments are included at this stage.

For Amazon, such an arrangement could provide another automation platform to support fulfillment operations as the company continues to invest heavily in warehouse robotics, artificial intelligence and automated inventory handling.

What is AutoStore?

Norway-founded AutoStore develops automated storage and retrieval systems designed around a dense cubic storage grid.

Rather than relying on conventional warehouse aisles and shelving, products are stored in bins stacked vertically inside a grid. Robots travel across the top of the structure, retrieving bins and delivering them to workstations where orders can be picked and processed.

The approach allows warehouses to store significantly more inventory within a smaller physical footprint while reducing the amount of manual movement required inside fulfillment centers.

AutoStore says it now has approximately 2,000 systems operating across 68 countries, serving retailers, logistics companies, industrial businesses and other fulfillment-intensive sectors.

The company increasingly positions its offering not simply as warehouse robotics, but as a broader fulfillment platform combining automation, software and AI.

Why Amazon's agreement with AutoStore matters

Amazon already operates one of the most technologically sophisticated logistics networks in the world.

Warehouse automation is central to that strategy.

The company has spent years developing and deploying its own robotic systems while also acquiring and working with external automation technologies. Robotics is increasingly used to move inventory, organize products, assist picking and packing processes, and reduce the amount of repetitive physical movement required from warehouse employees.

The AutoStore agreement suggests that Amazon is continuing to evaluate multiple technological approaches rather than relying exclusively on internally developed systems.

For AutoStore, securing a global procurement framework with a customer of Amazon's scale also provides significant strategic validation.

In its Q2 2026 report, AutoStore CEO Mats Hovland Vikse described the Amazon agreement as further validation of the company's strategic direction and of the relevance of its technology for major global customers.

E-commerce is accelerating warehouse automation

The agreement comes at a time when fulfillment automation is becoming increasingly important across the global e-commerce industry. Online retailers are under continuing pressure to process higher order volumes while simultaneously meeting increasingly demanding delivery expectations.

Customers now expect faster fulfillment, reliable inventory availability and greater visibility throughout the delivery process. At the same time, warehouse operators face rising labor costs and pressure to make better use of expensive logistics real estate.

AutoStore identifies continued e-commerce penetration, labor-cost inflation and increasing demand for operational efficiency as major structural drivers behind the long-term expansion of warehouse automation. Automated storage systems can potentially address several of those challenges simultaneously by increasing storage density, accelerating product retrieval and reducing repetitive warehouse movements.

AutoStore reports strong growth in 2026

The Amazon announcement coincided with AutoStore's second-quarter 2026 financial results. The company reported quarterly revenue of approximately $192 million, representing an increase of around 43% year on year. Order intake reached approximately $218 million, up around 45% compared with the same period in 2025. AutoStore's order backlog stood at approximately $596 million at the end of the quarter.

The company also reported a gross margin of around 72% and an adjusted EBITDA margin of approximately 45%. For the full 2026 financial year, AutoStore is currently targeting revenue of around $700 million. The company says it has also launched 14 new products and features during the past 12 months as it expands beyond its traditional core storage platform into additional warehouse automation applications.

Automation is becoming a competitive advantage in fulfillment

The wider significance of the agreement extends beyond Amazon and AutoStore. Fulfillment has increasingly become a competitive differentiator in e-commerce. Retailers are no longer competing only through product assortment and price. Delivery speed, order accuracy, inventory availability and returns processing can directly affect the customer experience.

That places growing pressure on warehouse infrastructure. Automation allows operators to increase throughput without necessarily increasing warehouse size or workforce at the same rate. For large international retailers and marketplaces, these efficiencies can become particularly important because improvements made across dozens or hundreds of fulfillment centers can translate into substantial operational savings.

The Amazon-AutoStore agreement therefore highlights the increasing strategic importance of warehouse technology within the global e-commerce ecosystem.

No confirmed Amazon deployment yet

Despite the potential scale of the partnership, the announcement should not be interpreted as confirmation of a major Amazon AutoStore rollout. Neither company has announced how many systems Amazon may acquire, which fulfillment centers could receive the technology, or how much Amazon could ultimately spend under the agreement.

AutoStore has explicitly stated that the framework does not contain purchasing commitments. Any future procurement would therefore represent a separate commercial decision. The agreement nevertheless removes part of the contractual groundwork that would otherwise be required for future deployments, potentially making it easier for Amazon to procure AutoStore technology across multiple markets.

What this could mean for global e-commerce fulfillment

Amazon's logistics operations have often influenced wider industry investment trends. Technologies deployed successfully at Amazon's enormous fulfillment scale can attract greater attention from retailers, marketplaces and third-party logistics providers seeking similar efficiency improvements. AutoStore says the majority of warehouses globally remain unautomated, suggesting significant potential for further expansion of automated fulfillment technology.

As e-commerce businesses look to shorten delivery times while controlling fulfillment costs, warehouse density and automation are likely to become increasingly important components of logistics strategy. For AutoStore, the new Amazon agreement provides access to potentially one of the largest automation customers in the world. For Amazon, it adds another proven technology platform to an increasingly sophisticated fulfillment ecosystem.

The immediate financial impact remains uncertain because no orders have yet been committed. But strategically, the agreement illustrates how quickly automation is becoming embedded in the infrastructure supporting global e-commerce.

The post Amazon signs global warehouse automation agreement with AutoStore appeared first on Cross-Border Magazine.

CEVA Logistics has completed the acquisition of Paack Iberia and Paack France through its B2C delivery subsidiary, Colis Privé, extending its last-mile delivery operations into Spain and Portugal while reinforcing its position in France.

Paack confirmed that the transaction had closed and that its Iberian and French businesses had joined the CMA CGM Group, the parent company of CEVA Logistics. The completion follows the exclusive negotiations announced by CEVA on 30 June 2026.

The acquisition represents another step towards CEVA’s ambition of creating a stronger pan-European last-mile delivery platform capable of serving e-commerce retailers across multiple domestic markets.

CEVA enters the Spanish and Portuguese last-mile markets

The transaction covers two independently operated businesses: Paack Iberia, which serves Spain and Portugal, and Paack France. Through the acquisition, Colis Privé gains an established presence in the Iberian Peninsula rather than having to build a delivery network from the ground up. It also increases the company’s scale in France, where Colis Privé already operates a substantial B2C parcel network.

CEVA originally described the transaction as a way to strengthen Colis Privé’s domestic position in France while accelerating its expansion into Spain and Portugal.

Colis Privé previously concentrated its activities primarily in France, Belgium and Luxembourg. The addition of Paack therefore transforms it into a broader Southern and Western European last-mile operator. For e-commerce retailers, the enlarged network could offer more consistent delivery services across several important European markets under the same logistics group.

What CEVA is acquiring from Paack

Founded in Barcelona in 2015, Paack built its business around technology-supported delivery services for e-commerce companies and omnichannel retailers. Its platform manages several stages of the last-mile process, including delivery scheduling, parcel tracking, performance reporting, and returns management.

Paack has also differentiated itself through scheduled and time-slot delivery options. These services allow consumers to receive orders during more specific delivery windows, addressing one of the most common sources of dissatisfaction in online shopping: uncertainty over when a parcel will arrive.

The company combines its proprietary technology with a network of logistics hubs, delivery partners and local operations. Paack Iberia generated revenue of approximately €125 million in Spain and Portugal during 2025, representing reported year-on-year growth of 25%. It completed around 36 million deliveries during the year, 20% more than in the previous period.

Paack France generated approximately €49 million in revenue, an increase of 7.8%, and completed around 10.4 million deliveries. Both the Iberian and French businesses reported positive EBITDA. Combined, the two acquired operations generated approximately €174 million in annual revenue.

A last-mile business exceeding €550 million in revenue

CEVA previously estimated that the combination of Colis Privé and the acquired Paack businesses would create a last-mile organization generating more than €550 million in annual revenue. The enlarged operation will bring together Colis Privé’s existing delivery network and Paack’s infrastructure, technology and customer relationships.

Paack employed approximately 490 people across its French and Iberian businesses when the transaction was announced. Colis Privé, meanwhile, works with around 5,000 delivery drivers across its existing markets. The deal gives CEVA access to additional delivery capacity, local knowledge and operational infrastructure in three of Europe’s largest e-commerce markets.

However, the strategic value of the acquisition goes beyond parcel volumes. Paack’s proprietary technology could potentially be deployed across other parts of Colis Privé’s network, improving delivery visibility, route management and the consumer experience.

Why last-mile logistics is consolidating

Europe’s parcel-delivery market remains highly fragmented, with national postal operators, international carriers, regional specialists, locker networks and technology-led delivery companies competing for retailers and parcel volumes. At the same time, e-commerce businesses increasingly want logistics partners capable of supporting several markets through a single relationship.

Retailers selling across Europe must often integrate with different delivery providers in every country. This creates additional technical work, fragmented tracking data and inconsistent customer experiences.

A larger Colis Privé network could help CEVA offer retailers a more unified proposition covering fulfillment, transportation and final-mile delivery. The acquisition also reflects the growing importance of scale in parcel logistics. Last-mile operators must invest heavily in sorting facilities, delivery capacity, technology and consumer-facing services while operating in a market where delivery prices remain highly competitive.

Consolidation allows logistics groups to spread those investments across greater parcel volumes and a wider geographical network.

CEVA strengthens CMA CGM’s e-commerce logistics strategy

CEVA Logistics is part of the CMA CGM Group, which has steadily expanded beyond maritime transport into contract logistics, air freight, fulfillment and last-mile delivery.

CMA CGM acquired CEVA in 2019. CEVA subsequently completed the acquisition of Colis Privé in 2022, strengthening its e-commerce and final-mile capabilities in France. The Paack acquisition expands that strategy further by connecting CEVA’s global logistics capabilities with a wider European delivery network.

For CMA CGM, building an end-to-end logistics platform creates opportunities to manage more stages of the e-commerce supply chain. These can range from international transportation and customs clearance to warehousing, order fulfillment, returns and delivery to the consumer.

The group has also continued expanding through other major logistics transactions, including the acquisition of Bolloré Logistics and an agreement to acquire FedEx Supply Chain. Paack therefore becomes part of a much larger logistics ecosystem rather than operating solely as an independent last-mile specialist.

What the acquisition means for e-commerce retailers

The immediate impact for Paack customers is expected to be continuity rather than a sudden change in delivery operations.

Nevertheless, integration with CEVA and Colis Privé could gradually provide retailers with access to a broader geographical network and additional logistics services.

Potential advantages include:

• A larger last-mile network covering France, Spain and Portugal
• Greater capacity during peak e-commerce periods
• Access to CEVA’s international logistics and fulfillment services
• More consistent technology and delivery data across markets
• Expanded scheduled-delivery and returns capabilities

For international retailers, the most important benefit may be the ability to combine cross-border transportation, fulfillment and domestic delivery through fewer logistics providers. This model could be particularly attractive to retailers entering Southern European markets without their own local logistics infrastructure.

Integration will determine the deal’s success

Although the acquisition provides CEVA with immediate scale, its long-term success will depend on how effectively the companies integrate their networks, technology and commercial operations.

Last-mile delivery remains a complex and margin-sensitive business. Different countries have distinct labor models, delivery preferences, urban infrastructure and consumer expectations.

Spain and Portugal also differ from France in terms of geography, population density and delivery economics. CEVA will therefore need to preserve Paack’s local market knowledge while identifying areas where the businesses can share technology, capacity and operational processes.

Maintaining service quality during the integration will be especially important. Retailers and consumers are unlikely to judge the deal by the size of the combined network; they will judge it by delivery reliability, flexibility and visibility.

A step towards a pan-European delivery platform

The completion of the CEVA Paack acquisition demonstrates how Europe’s last-mile market is gradually moving towards larger, cross-border delivery networks.

By adding Paack’s operations in Spain, Portugal and France, Colis Privé gains both geographical reach and technology developed specifically for e-commerce delivery.

The deal also gives CEVA a stronger position in the final stage of the e-commerce supply chain, complementing its existing freight, contract-logistics and fulfillment operations.

The result is not yet a fully pan-European parcel network. However, it gives CEVA a considerably stronger platform from which to pursue that ambition.

As retailers look for simpler logistics relationships and more consistent cross-border delivery experiences, the ability to connect international supply chains with local last-mile operations could become one of CEVA’s most important competitive advantages.

The post CEVA completes Paack acquisition to expand its European last-mile network appeared first on Cross-Border Magazine.

A new phase of the European Union’s Artificial Intelligence Act has begun, bringing important transparency obligations into effect for companies using chatbots, generative AI and synthetic content.

From 2 August 2026, Article 50 of the EU AI Act applies across the European Union. The rules are designed to ensure that consumers understand when they are interacting with an AI system and when apparently authentic content has been artificially generated or manipulated.

For e-commerce companies, the changes may affect customer-service bots, virtual shopping assistants, AI-generated advertising, product imagery, synthetic influencers and automated editorial content.

However, the regulation does not require retailers to label every product description or marketing image created with AI. The obligations depend on the type of system, the nature of the content and whether the company is acting as an AI provider or simply using a third-party tool.

E-commerce chatbots must identify themselves as AI

One of the clearest requirements concerns AI systems that interact directly with consumers.

Providers of these systems must ensure that users are informed that they are communicating with AI, unless this is already obvious to a reasonably informed person.

For online retailers, this can include:

• Customer-service chatbots
• Virtual shopping assistants
• Automated returns agents
• Conversational recommendation tools
• AI-powered order-tracking systems
• Voice-based shopping assistants

The disclosure should appear no later than the first interaction. A message such as “Hello, I’m an AI-powered shopping assistant” or a persistent “AI Assistant” label within the interface may satisfy the requirement.

Retailers should not assume that a robot icon, unusual bot name or automated writing style makes the artificial nature of the system sufficiently clear.

Although the legal design obligation falls primarily on the system provider, e-commerce companies should verify that the disclosure is displayed properly across their websites, applications and customer-service channels.

Vendor contracts should also clarify who is responsible for implementing, testing and maintaining the notice.

Not all AI-generated content needs a visible label

Article 50 also covers AI-generated and manipulated audio, images, video and text.

Providers of generative AI systems must ensure that covered outputs can be identified in a machine-readable format. This may involve metadata, watermarking, content credentials or another technical method.

This technical marking requirement does not mean that every retailer must place a visible “AI-generated” label on every piece of AI-assisted content.

The visible disclosure duties placed on businesses using the content are narrower. They primarily concern:

• Deepfakes
• Certain AI-generated texts dealing with matters of public interest
• Emotion-recognition and biometric-categorization systems

A standard product description, category page or promotional email does not automatically need a visible AI label simply because generative AI helped produce it.

What this means for product descriptions

Retailers increasingly use AI to create:

• Product titles and descriptions
• Marketplace listings
• Category pages
• Buying guides
• Marketing emails
• Translations
• Frequently asked questions

Most ordinary commercial copy will not require a visible AI-generated label.

The specific disclosure obligation for AI-generated text applies when the material is published to inform the public about a matter of public interest.

This may become relevant when an e-commerce company publishes AI-generated content involving:

• Product safety
• Public health
• Environmental claims
• Sustainability
• Financial services
• Consumer rights
• Legal or regulatory developments

For example, a simple description of a product’s dimensions is unlikely to trigger the rule. An AI-written article claiming that the product provides medical benefits or complies with environmental regulations may require closer scrutiny.

Human editorial review remains important

Even when AI-generated text addresses a matter of public interest, a visible label may not be required if the content has undergone meaningful human review and a person or company assumes editorial responsibility.

The review must be more than a basic spelling or grammar check.

A qualified editor should assess the substance of the content, verify its sources, correct inaccurate claims, and have the authority to approve or reject the final version.

Retailers should document:

• Who reviewed the material
• Which claims were checked
• What sources were used
• Who approved publication
• Who assumes editorial responsibility

This is particularly relevant for company blogs, sustainability reports, regulatory explainers and product-safety content.

When AI-generated images may need disclosure

AI-generated advertising and product imagery do not automatically require a visible label.

The main visible-disclosure obligation applies when the content qualifies as a deepfake.

Under the AI Act, a deepfake is an AI-generated or manipulated image, audio or video content that resembles a real person, object, place, organization or event and could falsely appear authentic.

In e-commerce, this could include:

• A synthetic celebrity endorsement
• An artificial customer testimonial
• A fake video of a real person using a product
• A fabricated representation of a warehouse or factory
• A manipulated demonstration that exaggerates product performance
• A realistic virtual influencer presented as a genuine person

When content qualifies as a deepfake, its artificial nature must be disclosed clearly when the viewer first encounters it.

Machine-readable metadata alone is not enough. Consumers must be able to understand that the material is artificial without using specialized software.

Virtual models and synthetic influencers

Not every virtual model will necessarily qualify as a deepfake.

A clearly fictional animated character or obvious digital mascot is less likely to mislead consumers than a photorealistic virtual influencer presented as a real customer.

Retailers should consider:

• How realistic the content appears
• Whether it resembles a real person
• Whether viewers are likely to believe it is authentic
• Whether it imitates a testimonial or endorsement
• Whether the artificial nature is clear from the context

Even when the AI Act does not require a label, EU advertising and consumer-protection rules may still apply.

Companies should not create the false impression that a genuine customer used, reviewed or recommended a product when the person is entirely synthetic.

AI editing of product photography

Routine image editing does not automatically trigger the AI Act’s transparency requirements.

Basic adjustments such as resizing, color correction, sharpening and noise removal are less likely to be treated as synthetic-content generation.

The risk increases when AI is used to make substantial changes, including:

• Altering the size or proportions of a product
• Simulating features the product does not have
• Changing materials or colors inaccurately
• Adding accessories that are not included
• Manipulating how clothing fits a model
• Creating fabricated before-and-after results

These practices may violate consumer-protection rules even when they fall outside the strict deepfake definition.

AI-generated reviews remain a major risk

The new transparency rules should not be interpreted as permission to create fake customer reviews.

Publishing fabricated reviews, endorsements or testimonials can already breach EU consumer-protection law.

An AI-generated testimonial may also qualify as a deepfake when it depicts a realistic person describing an experience that never occurred.

Retailers should clearly distinguish between:

• A genuine customer review
• A paid endorsement
• A fictional demonstration
• A virtual spokesperson
• A simulated use case

The safest policy is to prohibit synthetic customer reviews altogether.

Marketplaces face additional challenges

Online marketplaces may need to manage AI-generated content produced by thousands of third-party sellers.

They should review whether their systems:

• Preserve machine-readable AI markings
• Allow sellers to disclose deepfakes
• Prohibit synthetic reviews
• Prevent misleading AI-generated product demonstrations
• Offer reporting tools for deceptive content
• Retain disclosures when listings are reformatted or syndicated

Marketplaces that provide their own AI listing generators should also assess whether they are acting only as deployers or may assume additional responsibilities as providers.

A practical compliance checklist

E-commerce companies should now take several immediate steps.

Audit customer-facing AI

Identify every chatbot, shopping assistant, voice agent and automated support tool that interacts with customers.

Confirm that each system clearly identifies itself as AI.

Define legal responsibilities

Establish whether the company is acting as a provider, deployer, distributor or importer for each AI system.

Do not rely only on the terminology used by the vendor.

Review synthetic media

Identify where AI is used to generate or substantially alter images, audio or video.

Assess whether any material could qualify as a deepfake.

Protect technical markings

Check whether website optimization, image compression, marketplace uploads or content-management systems remove metadata or watermarks added by the AI provider.

Introduce editorial controls

Create a documented human-review process for AI-generated content involving safety, health, sustainability, regulation or other public-interest topics.

Update supplier contracts

Require AI vendors to explain:

• How chatbot disclosures are implemented
• How synthetic content is marked
• Whether the marking survives export and compression
• What compliance documentation is available
• How future regulatory changes will be communicated

Train relevant teams

Marketing, legal, customer service, e-commerce, content and technology teams should all understand the transparency requirements.

Compliance is not solely an IT responsibility.

Penalties and commercial risk

Breaches of the relevant EU AI Act obligations can result in fines of up to €15 million or 3% of the company’s worldwide annual turnover, whichever is higher.

Authorities must consider proportionality, including the size of the business and the seriousness of the infringement.

However, financial penalties are not the only concern.

Misleading AI-generated content may also lead to:

• Consumer complaints
• Advertising investigations
• Platform sanctions
• Product-information disputes
• Reputational damage
• Loss of customer trust

Transparency as part of the customer experience

The EU AI Act does not prevent retailers from using chatbots or generative AI.

Its central principle is that consumers should not be misled about whether they are interacting with a person or viewing content that appears authentic but is artificially generated.

A clearly labeled chatbot can still provide fast and effective service. AI-assisted content can still improve productivity when its claims are properly reviewed. Virtual models and synthetic media can still be used when their presentation is transparent and not deceptive.

For e-commerce businesses, the priority should be to identify where AI interacts directly with consumers, where synthetic content could be mistaken for reality, and where human editorial responsibility is required.

As AI becomes more deeply integrated into online retail, transparency will become both a legal obligation and a competitive trust signal.

The post EU AI Act enforcement begins: What e-commerce businesses must disclose about chatbots and AI-generated content appeared first on Cross-Border Magazine.

ESW has launched a new agentic commerce solution designed to help international brands make their products discoverable, purchasable and operationally supported inside artificial intelligence platforms.

The cross-border e-commerce provider announced that Microsoft Copilot will be the first integration for ESW Agentic Commerce, allowing participating brands to connect AI-powered product discovery directly with secure checkout and payment capabilities.

The launch represents another important step in the development of agentic commerce: a model in which AI assistants do more than recommend products. They can increasingly compare options, guide purchasing decisions and complete transactions on behalf of shoppers.

For international retailers, however, connecting an AI recommendation to a completed order is considerably more complicated than adding a buy button to a chatbot. Payments, localisation, fraud prevention, import duties, compliance, fulfilment and returns must still operate correctly behind the interface.

ESW is positioning its new Agentic Commerce infrastructure as the layer that manages that complexity.

What is ESW Agentic Commerce?

ESW Agentic Commerce is a new infrastructure solution intended to connect retailers’ existing e-commerce operations with AI-powered shopping environments.

The system allows brands to integrate and optimise their product catalogues for discovery by AI platforms. Once a shopper finds a suitable product, the transaction can be completed securely within the AI experience rather than requiring the customer to move to a separate retailer website.

According to ESW, the solution works alongside a retailer’s existing e-commerce infrastructure. Brands therefore do not need to replace their current commerce platform to participate in AI-assisted shopping channels.

The technology is supported by the ESW Agentic Hub, which acts as an infrastructure layer connecting AI agents with the company’s international commerce capabilities.

Through this layer, AI platforms can potentially access the product, checkout and operational services required to move a shopper from initial discovery to a completed cross-border order.

ESW says Microsoft Copilot will be the first integration, with support for additional agents and platforms expected in the coming months. The service is immediately available to brands and customers in the United States, while broader availability is planned.

Microsoft Copilot becomes the first integration

Microsoft has been developing Copilot into a transactional shopping environment rather than limiting it to search, recommendations and product comparisons.

Copilot Checkout allows shoppers to discover, evaluate and purchase products without leaving the conversational interface. Microsoft says the merchant remains the merchant of record and retains ownership of the transaction, customer data and commercial relationship.

The ESW integration extends this concept towards international commerce.

A customer could theoretically ask Copilot for a product recommendation, compare several options, select an item and complete the purchase inside the same conversation. ESW would then provide the underlying international commerce infrastructure required to process and support the transaction.

That infrastructure can include:

• Localised checkout experiences
• International payments
• Fraud management
• Duties and tax calculations
• Regulatory compliance
• Cross-border shipping
• Fulfilment
• Customer service
• International returns

The customer may experience the journey as a simple conversation, but the transaction still depends on a complex network of commercial and logistical systems.

This operational layer is particularly important when the shopper, merchant, payment provider and delivery destination are located in different countries.

From conversational search to conversational checkout

Generative AI has already changed how some consumers research products. Shoppers can ask an AI assistant to compare specifications, interpret reviews, recommend suitable products or narrow a large catalogue according to highly specific requirements.

Until recently, however, most AI-assisted shopping journeys ended with a link.

The AI could recommend a product, but the shopper would usually have to leave the conversation, visit the merchant’s website, find the correct product again and proceed through a conventional checkout.

Each additional step created an opportunity for the customer to abandon the purchase.

Agentic commerce attempts to remove that separation between discovery and transaction. Instead of acting primarily as a search interface, the AI assistant becomes an active participant throughout the purchasing journey.

Microsoft reported that shopping journeys involving Copilot produced 53% more purchases within 30 minutes of an interaction than journeys without Copilot. When clear shopping intent was present, journeys involving Copilot were reportedly 194% more likely to result in a purchase.

These figures were published by Microsoft and should be interpreted as early platform data rather than independent measurements of the wider e-commerce market. Nevertheless, they suggest that reducing the distance between product recommendation and checkout could have a measurable effect on conversion.

Why agentic commerce is especially relevant to cross-border retail

Domestic transactions are already complicated. International orders add multiple layers of friction and risk.

A product recommended by an AI assistant may be available in one country but restricted in another. The displayed price may need to include local taxes, import duties or customs charges. Payment preferences, consumer regulations, delivery options and return procedures may also differ by market.

An AI assistant cannot reliably complete an international order simply by identifying the right product. It must also connect with systems capable of answering operational questions in real time.

These may include:

• Is the product available in the shopper’s country?
• What is the final landed cost?
• Which currency and payment methods should be offered?
• Are import restrictions applicable?
• How long will delivery take?
• Who is responsible for collecting taxes and duties?
• Can the item be returned locally?
• How will fraud and payment risk be managed?

ESW already provides international commerce services covering payments, compliance, localisation, shipping and returns across more than 200 markets. The company says it works with more than 150 global brands and processes more than eight million cross-border orders annually.

Agentic Commerce applies those capabilities to a new customer interface.

Rather than building a separate international transaction system for every AI platform, ESW’s proposed model gives brands a central infrastructure layer that can be extended across multiple agents.

Product data becomes a commercial priority

The emergence of AI-powered shopping will also increase the importance of product data.

Traditional e-commerce search is often built around keywords, categories, filters and paid placements. AI discovery is more conversational and contextual.

A shopper may not search for a particular product name. Instead, the shopper might ask:

“Find me a waterproof jacket suitable for a week in Iceland that fits in hand luggage and costs less than €200.”

To respond accurately, the AI must understand far more than a product title and category. It may need structured information about materials, sizing, climate suitability, weight, delivery availability, price, inventory and return conditions.

Brands whose product information is incomplete, inconsistent or inaccessible to AI systems may become less visible even when their products would otherwise meet the customer’s requirements.

This creates a new optimisation discipline for merchants. In addition to search engine optimisation, marketplace optimisation and feed management, brands will increasingly need to consider how products are interpreted and selected by AI agents.

Important areas will include:

• Accurate structured product attributes
• Consistent descriptions across channels
• Real-time pricing and inventory
• Clear shipping eligibility
• Detailed sizing and compatibility information
• Transparent return conditions
• Verified brand and product information
• Machine-readable commercial policies

In agentic commerce, product data is not merely descriptive content. It becomes part of the decision-making infrastructure.

ESW says retailers can retain their existing platforms

One of the most significant aspects of the ESW proposition is that retailers are not expected to replace their existing e-commerce platforms.

ESW Agentic Commerce is designed to operate alongside the merchant’s current technology stack. The retailer can therefore extend its catalogue and transaction capabilities into AI environments while continuing to use its existing platform for core commerce operations.

This reduces one of the most obvious barriers to agentic commerce adoption.

Large international retailers often operate highly customised systems involving commerce platforms, enterprise resource planning software, product information management, order management, warehouse systems and multiple payment providers.

Replacing that infrastructure solely to participate in a new AI sales channel would be costly and risky.

An integration layer allows retailers to test agentic commerce without treating it as a complete platform migration.

Nevertheless, brands will still need to determine how orders generated through AI interfaces are attributed, managed and measured. Questions around customer identity, consent, marketing permissions, returns and post-purchase communication will become increasingly important as the channel develops.

The retailer must remain visible

Agentic commerce could reduce purchasing friction, but it may also weaken the direct relationship between shoppers and retailers.

When a customer shops through an AI assistant, the assistant may control much of the experience:

• The initial recommendation
• The comparison criteria
• The products displayed
• The explanation of advantages and disadvantages
• The checkout interface
• The post-purchase conversation

This creates a strategic risk for brands. The AI platform could become the primary interface, while the retailer becomes an invisible fulfilment provider.

Microsoft has attempted to address this concern by emphasising that merchants participating in Copilot Checkout remain the merchant of record and retain control of their transaction data and customer relationship.

However, formal ownership of the transaction does not necessarily guarantee control over the customer experience.

Retailers will need to ensure that AI commerce integrations preserve brand identity, communicate accurate product information and create opportunities for continued customer engagement after the purchase.

Otherwise, brands may become increasingly dependent on AI platforms in much the same way that many merchants became dependent on search engines, marketplaces and social networks.

Agentic commerce will create new compliance questions

The ability of an AI system to complete a purchase introduces legal and regulatory questions that conventional product recommendation tools do not face.

Retailers must be able to demonstrate that customers were shown accurate prices, material product information, delivery conditions and return rights before the transaction was completed.

For cross-border orders, the process may also involve:

• Consumer protection requirements
• Data protection rules
• Product safety obligations
• Customs declarations
• Sanctions screening
• Import restrictions
• Tax collection
• Payment authentication
• Accessibility requirements
• Records of customer consent

There is also the question of responsibility when an AI assistant recommends an unsuitable product, presents incorrect information or completes a purchase based on an ambiguous instruction.

The commercial agreement between the retailer, commerce provider and AI platform will need to define how responsibility is distributed.

These issues will become more significant as AI agents gain greater autonomy. Recommending a product is different from selecting quantities, accepting terms, choosing delivery services or authorising payment.

Agentic commerce infrastructure must therefore provide both convenience and traceability.

AI platforms are becoming a new distribution channel

ESW’s launch should be understood as part of a broader shift in e-commerce distribution.

Retailers have previously adapted their businesses for successive generations of digital channels:

• Desktop websites
• Mobile commerce
• Online marketplaces
• Social commerce
• Retail media
• Voice commerce
• Conversational commerce

AI assistants may now become another major entry point.

ESW cites McKinsey research estimating that agentic commerce could represent a global opportunity of between $3 trillion and $5 trillion by 2030. The company also references a Gartner prediction that traditional search engine volume could decline by 25% as consumers increasingly use AI chatbots and virtual agents.

These projections should not be treated as guarantees that AI agents will replace conventional e-commerce journeys. Consumer trust, technical reliability, product coverage and regulatory oversight will all influence adoption.

However, the direction of investment is increasingly clear.

Microsoft, Google, OpenAI, payment companies, commerce platforms and major retailers are all developing systems that allow AI assistants to participate more directly in shopping and transactions.

The strategic question for retailers is therefore shifting from whether AI will influence product discovery to how much of the commercial journey AI platforms will ultimately control.

What retailers should do now

Most brands do not need to rebuild their entire commerce strategy around autonomous AI agents immediately. However, waiting until the channel is mature could leave retailers with significant product-data and infrastructure work to complete.

Retailers preparing for agentic commerce should begin with several practical steps.

Audit product information

Product catalogues should contain detailed, consistent and structured information that AI systems can interpret accurately.

Missing attributes, inconsistent naming and vague descriptions could reduce both visibility and recommendation quality.

Improve real-time data access

AI shopping systems require current information about prices, promotions, inventory, delivery options and geographical availability.

Static or frequently outdated feeds will not be sufficient for transactional experiences.

Review international checkout capabilities

Retailers should assess whether their existing systems can calculate local prices, duties, taxes and delivery conditions in real time.

Agentic discovery will not generate sustainable revenue if customers encounter inaccurate landed costs or failed international orders.

Establish clear governance

Brands should define which actions an AI platform can perform, what information it can access and when customer confirmation is required.

Higher-risk actions should include appropriate human approval or explicit shopper consent.

Protect the customer relationship

Retailers should understand what customer information they receive, how post-purchase communication works and whether they can continue serving the customer outside the AI platform.

Measure the channel separately

Agent-driven traffic and transactions should be distinguishable from conventional search, marketplace and direct website sales.

Without clear attribution, retailers will struggle to evaluate conversion, acquisition costs, repeat purchases and platform dependency.

A significant step, but not the finished model

ESW Agentic Commerce provides a clearer view of how AI-assisted shopping could become operational at an international scale.

The announcement moves the conversation beyond experimental chatbots and product recommendations. It focuses on the less visible infrastructure required to turn an AI interaction into a compliant, fulfilled and serviceable transaction.

Microsoft Copilot gives ESW an established AI interface through which to launch the solution. ESW contributes the international checkout, payment and operational capabilities required behind that interface.

The initial availability is currently limited to the United States, and broader adoption will depend on how quickly additional markets, retailers and AI platforms are integrated. Questions also remain regarding customer ownership, compliance, attribution and the influence AI assistants will have over product selection.

Even so, the direction is important.

E-commerce is entering a stage in which the storefront may no longer be a website, app or marketplace page. It may be a conversation.

For international brands, success in that environment will depend not only on whether an AI assistant can find their products, but whether the entire cross-border transaction can operate correctly after the recommendation is made.

The post ESW Launches Agentic Commerce with Microsoft Copilot, Connecting AI Discovery to Checkout appeared first on Cross-Border Magazine.

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

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

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

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

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

Shein reports a $99 million quarterly loss

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

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

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

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

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

US revenue falls after the end of de minimis treatment

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

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

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

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

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

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

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

Shein considers raising US prices

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

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

That response carries a significant commercial risk.

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

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

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

Europe could become Shein’s next major pressure point

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

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

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

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

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

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

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

Shein expands its European warehousing strategy

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

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

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

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

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

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

Annual sales rise, but profit and growth slow

Shein remained profitable over the full 2025 financial year.

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

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

These figures illustrate the challenge facing the retailer.

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

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

Shein seeks a valuation of up to $50 billion

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

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

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

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

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

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

Hong Kong becomes Shein’s third IPO route

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

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

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

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

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

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

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

Regulatory scrutiny remains a major IPO risk

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

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

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

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

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

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

Shein’s cross-border model is being rewritten

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

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

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

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

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

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

Can Shein defend its valuation?

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

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

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

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

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

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

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

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

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

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

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

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

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

Poland remains Notino’s largest European market

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

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

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

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

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

Revenue has more than doubled in four years

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

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

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

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

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

Four in ten Notino orders now come through its app

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

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

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

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

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

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

Physical stores become an important growth channel

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

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

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

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

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

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

Notino is building a broader beauty ecosystem

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

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

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

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

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

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

New leadership structure supports European expansion

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

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

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

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

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

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

Logistics and localization remain central to the model

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

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

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

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

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

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

What Notino’s results mean for European e-commerce

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

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

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

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

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

Notino prepares for its next European growth phase

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

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

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

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

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

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

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 to place 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.

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

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

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

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

What does the EU ban cover?

The prohibition applies to unsold:

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

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

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

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

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

Why has the EU introduced the measure?

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

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

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

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

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

Are any exceptions allowed?

Products may still be destroyed in limited and justified circumstances.

Possible exceptions include goods that:

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

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

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

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

Why the ban matters for fashion e-commerce

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

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

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

That calculation must now include regulatory compliance.

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

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

Reverse logistics becomes a compliance function

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

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

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

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

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

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

Recommerce could benefit

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

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

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

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

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

Better forecasting becomes essential

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

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

Useful measures include:

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

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

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

Marketplaces must clarify responsibility

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

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

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

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

What should retailers do now?

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

Priority actions include:

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

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

A major change for European fashion

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

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

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

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

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

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