As ecommerce become an increasingly mature business, more and more laws and regulations come in place. This is also because Europe desperately wants to have one, unified ecommerce market. The Directive on Consumer Right is one of these examples. As of 13 June 2014 it replaced certain directives and it’s focused more on protecting the online consumer than the European Union did before.
Nine out of ten German online sellers say that bureaucratic procedures place a heavy or very heavy burden on them. Rules around product safety and packaging generate the most administrative hassle. Sellers are spending a lot of time and energy on complying with all laws and regulations.
The Council of the European Union has approved new customs rules for imported parcels valued at up to 150 euros. These shipments were previously exempt from customs duties, but that will change on July 1. From that date, a flat rate of 3 euros will apply to each item category contained in a small parcel entering the EU.
As cross-border ecommerce in Europe continues growing, many online sellers are interested in entering the German market. But expanding internationally requires preparation. Online sellers should consider the character of the German consumer, says Andreas Giese, CEO of Dexport.
Amazon significantly increased revenue in its two largest European markets last year. The company generated 45.9 billion dollars in Germany and 43.2 billion dollars in the United Kingdom, representing growth of 12.3 percent and 14.2 percent, respectively.
Amazon may no longer influence the prices set by sellers on its German marketplace – something the company has been doing. Amazon must change its policies and may only exert price influence in exceptional cases. It must also repay 59 million euros in economic benefits.
The number of low-cost ecommerce parcels that the European Union received from outside the Union rose sharply again last year, increasing by 26 percent. In total, 5.8 billion parcels with a value of up to 150 euros were imported. That amounts to roughly one parcel per EU citizen per month.
Ecommerce giant Temu has suspended cross-border sales of products in Türkiye. Consumers in the country can only see and buy products from local online sellers that offer domestic shipping. The change comes after a regulatory inspection from Türkiye’s Competition Authority, and it is unclear if it is a permanent change or not.
As of January 1st, Bulgaria has joined the eurozone. The euro is now the official currency in the country. As currency conversions are now eliminated, international shops can now sell products in this country more easily. This offers new opportunities for the online retail trade.
The European Union has published new rules on alternative dispute resolution (ADR). The revised directive marks the definitive end of the central European ODR platform. The focus is shifting to national and sector-specific ADR bodies.
Earlier this month, the European Union decided to remove the customs exemption, that was applicable for goods with a value of up to 150 euros, in 2026. The measure targets Chinese platforms, that mostly sell cheap products to European customers. Türkiye expects that it will be unaffected by the new ruling.
Cross-border ecommerce in Europe is expected to increase with an average annual rate of 29 percent, up until 2031. With the rise in cross-border ecommerce, the demand for a smooth customs flow also increases. As customs in Europe become more data-driven, online retailers need to invest in structured data.
Shein and Temu together sell around 3.3 billion euros worth of products in Germany, according to the German Retail Federation (HDE). One in five German consumers plans to make purchases from the Chinese platforms in the run-up to Christmas. “That is somewhat of a paradox”, says HDE director Stefan Genth.
Amazon may have to compensate German customers for the higher Prime subscription fees it unilaterally introduced three years ago. A regional consumer protection authority, which filed the lawsuit, wants Amazon to reverse the price increase and refund the difference to its customers.
European retail and wholesale association EuroCommerce is urging policymakers to quickly implement a unified handling fee for international parcels. A national approach to customs reform and to the parcel tax could undermine the integrity of the single European market.
The Belgian government is considering introducing a levy on parcels imported from outside the European Union. The 2 euro fee per parcel would affect Chinese online retailers such as AliExpress, Shein and Temu. The government intends to use the revenue to help reduce the national budget deficit.