EU €3 Service Fee for Small Packages Takes Effect, Temu Seller Orders Drop 60%
A new EU regulation imposing a €3 service fee on direct mail packages under €150 took effect on July 1. Consequently, Temu sellers in Europe experienced a significant decline in order volume, with cross-border logistics costs rising further.
What are the key facts?
- 1New Regulation: €3 small package service fee
- 2Effective Date: July 1
- 3Impact: Orders down 60%
What happened?
The EU has begun charging a €3 service fee for direct mail packages under €150, alongside a 20% VAT, leading to increased final prices for low-cost products. This has severely impacted Temu platform sellers, with order volume dropping by 60%.
What does this mean for cross-border sellers?
European cross-border sellers need to recalculate their pricing models and consider warehouse layouts to avoid additional costs of direct mail packages.