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Damage in the billions

How Temu and Shein Impact the German Economy

Smartphone with Temu and Shein Logo
Millions of packages from the Far East arrive in Germany and Europe daily Photo: Getty Images
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April 28, 2026, 9:22 am | Read time: 3 minutes

Low prices and quick availability are leading to increased use of shopping apps. Offers for just a few euros often end up in the shopping cart. Products like phone cases, clothing, or decor seem unproblematic when viewed individually. However, collectively, they have a significantly larger impact.

A study by the German Economic Institute commissioned by the German Retail Association (HDE) shows that the German economy loses about 2.4 billion euros in value creation each year. The retail sector alone is affected by 1.3 billion euros.

Purchasing Power Flows Abroad

Many orders are not additional but replace purchases from other retailers. According to the study, more than 70 percent of customers would have bought their most recent products from other providers if the platforms had not been available. Some indicated they would have accepted the same or even higher prices. However, since the money flows to China, purchasing power shifts from local stores and other online shops to foreign providers.

Impact on Jobs and Tax Revenue

The economic consequences are also evident in the job market. According to the study, more than 40,000 jobs in Germany could be lost. About 28,300 of these positions affect the retail sector. The retail association cites unequal conditions as the cause. While domestic companies are strictly regulated, goods from third countries often enter the market more easily. The state also feels the financial impact. Annually, around 429 million euros in tax revenue could be lost.

Millions of Shipments Daily in Europe

The scale of the business is particularly evident in the volume of packages. In Germany, around 460,000 shipments from the platforms arrive daily. Across the EU, the number is about 12 million packages per day. In total, approximately 11 million packages are delivered daily in Germany. The platforms thus account for a significant share and simultaneously create additional strain on customs, logistics, and delivery services.

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Call for Stricter Controls

“The current data clearly shows the dramatic situation: The massive rule violations by Temu and Shein are harming the retail sector and the entire German economy on a large scale. If politics does not finally take massive and noticeable action after years of watching, I see dark times ahead for Germany as a business location,” says HDE President Alexander von Preen. The association is therefore calling for more controls, especially by customs. France is cited as an example, where imported packages are more specifically checked.

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EU Plans New Fees for Orders

There are also initial reactions at the European level. The EU Parliament and EU Council have agreed to introduce an additional levy on online orders from non-EU countries starting November 1, 2026. The exact amount has not yet been determined. The aim is to cover the cost of control and processing for the many small shipments. Additionally, the current customs exemption limit of 150 euros will be abolished in July 2026. For cheaper goods, a flat fee of 3 euros per product group will apply. This could make small orders from Temu and Shein more expensive in the future.

This article is a machine translation of the original German version of TECHBOOK and has been reviewed for accuracy and quality by a native speaker. For feedback, please contact us at info@techbook.de.

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