In early 2026, the EU will officially cancel the "tax-free small parcels" policy originally scheduled to launch in 2028. All imported parcels, regardless of value, will be subject to customs duties and processing fees. This policy will directly affect 91% of small parcels exported from China to the EU, bringing unprecedented challenges and opportunities for transformation to China's cross-border e-commerce.
New EU regulations will impose an additional handling fee of €2 per direct mail parcel, and €0.50 per parcel for parcels shipped from overseas warehouses. Converted to RMB, these are approximately 16.3 yuan and 4.1 yuan respectively. Coupled with tariffs of 10%-20%, this will severely squeeze the profit margins of low-priced and mid-range goods.
For example, a small trinket priced at around 20 euros might have a profit margin of about 15% (about 3 euros), but after deducting a 2 euro processing fee and at least 2 euros in customs duties, the seller not only loses all profit but may even face losses.
| Product Type | Price (in Euros) | Original gross profit margin | Additional costs (euros) | Adjusted gross margin |
|---|---|---|---|---|
| Jewelry priced at 20 euros | 20 | 15% | Approximately 4 (customs duty + handling fee) | Approximately 0% or even negative values |
| Mid-range home appliances 120 euros | 120 | 30% | Approximately 14 | 20% |
With the EU customs inspection rate increasing from 12% to 30%, delivery times have generally lengthened to over 20 days, significantly exceeding the previous 7-10 day delivery cycle. This prolonged waiting time has led to a surge in refunds and negative reviews, severely eroding seller reputation and repeat purchase rates.
Logistics providers and sellers will face the dual pressures of demurrage fees and additional warehousing fees, further squeezing profit margins.
The EU customs has strengthened its digital verification tools, and any discrepancies between declared data and actual goods will result in fines of up to five times the value of the goods or even blacklisting. Chinese cross-border sellers must strictly adhere to laws and regulations to avoid losing their market access due to violations.
Compared to direct shipping, overseas warehouses offer processing fees as low as €0.50 per item and shorten delivery time to 3-5 days, significantly improving the user experience. Sellers should focus on warehouse locations in European logistics hubs such as Germany, Poland, and Spain, combining sales data with intelligent forecasting to allocate inventory rationally.
Partnering with third-party overseas warehouses or building your own warehouses is the best practice in the industry to alleviate financial pressure and reduce operational risks.
Abandon products with low profit margins and fierce price wars below €50, and shift towards higher profit margins of over €150 in niche markets such as smart home products, outdoor gear, and health equipment. At the same time, create differentiated products, such as those made with environmentally friendly materials or offering personalized customization, to enhance brand premium.
Leveraging the automated declaration and tax calculation tools provided by leading platforms like AliExpress, we assist sellers in standardizing their declaration processes and reducing human error. Simultaneously, we actively acquire CE certification and certificates of origin to build a robust compliance defense and earn the long-term trust of the EU market. Related reading: A must-read for foreign trade newcomers: A complete guide to EU CE certification and answers to common questions.
To enhance transparency, sellers should also clearly state price adjustments and changes in logistics cycles on their product pages to guide consumer expectations and reduce after-sales friction.