Temu appears to be absorbing the cost of a new €2 tax on low-value parcels entering France, at least for now. The tax, which came into effect March 1, applies to imports from retailers like Temu, Shein, and AliExpress. This move highlights the ongoing challenges for e-commerce companies navigating evolving international trade regulations.
A recent test purchase revealed that Temu hasn’t yet adjusted its pricing to reflect the new levy. An order including an €1.18 fly swatter – below the €2 tax threshold – was placed to assess the company’s response. Even as the tax is currently in effect, its application depends on the parcel’s final destination within Europe, potentially bypassing the fee if routed through Belgium or other EU nations.
To meet a minimum order value of €10 for new customers (and €20 for returning ones), additional items were added to the cart – a second fly swatter, a bathroom mat (€2.55), a USB-C cable (€1.25), a pack of 10 sponges (€1.78), and, notably, Ricard-branded socks (€3.34). The total order came to €11.28, triggering a potential tax liability of €10, calculated based on the number of product categories (five in this case, from six items).
The company is already implementing a longer-term solution: localized warehousing. Temu is highlighting an “local warehouse” option on its website and app, indicating products stocked in Europe and shipped via traditional container freight. Currently, this option primarily features products from European third-party sellers, fulfilling orders directly, similar to Amazon’s marketplace.
However, the selection available through the “local warehouse” is limited, lacking the breadth and low prices of direct shipments from China. The fly swatter, for example, was unavailable, with the alternative being adhesive tape sold by a franchisee in France. Prices for locally sourced items are not competitive. a 35-roll pack of tape is available for the same price as an 8-roll pack from the French vendor.
shipping costs for “local warehouse” orders are €2.99 if the order total doesn’t exceed €30. This contrasts with free air shipping from China, creating a potentially confusing pricing structure for consumers. Temu has removed the minimum order requirement, but the shipping fee remains. The company’s current strategy suggests a temporary absorption of the tax while it scales its European warehousing capabilities to maintain its competitive pricing.
