According to one estimate, the popular online retailers Temu and Shein are causing significant damage to the German economy. The retail sector loses sales of 2.5 billion euros every year – because consumers buy products from Chinese platforms instead of from providers in Germany. This is the result of an analysis by IW Consult on behalf of the German Trade Association (HDE).
The actual loss of sales for the entire economy is estimated to be twice as high. This also includes intermediate payments such as rent, energy, logistics as well as wages and the resulting consumer spending. Every euro in sales in retail leads to a total of around two euros in sales in the entire economy, said Marco Trenz, economist at the Institute of German Economics.
The basis is a representative survey of 4,000 consumers between the ages of 16 and 69 who were surveyed online in February. This shows that 51 percent of Temu and Shein users would have bought the products they purchased there for the same price elsewhere if this had not been possible on the Chinese platforms. 19 percent would even be willing to spend more money.
According to the analysis, more than 40,000 jobs have already been lost in Germany because of Temu and Shein, most of them in retail. “If Temu and Shein didn’t exist, a large proportion of purchases would be made in German retail. More employees would be needed for that,” says Trenz. There would also be further jobs in intermediate services sectors. He expects Temu and Shein’s sales to continue to rise and that even more jobs will be lost in the medium term.
According to HDE, Temu and Shein send 460,000 packages every day
The researcher sees further side effects from the success of the two shopping portals. As a result, the federal, state and local governments lost up to 420 million euros in tax revenue per year. “If the purchases did not take place at Temu and Shein, but in German retailers, wage, trade and corporate tax would also be paid,” emphasized Trenz.
According to HDE, Temu and Shein sent 460,000 packages to Germany every day in 2025. The platforms are popular with consumers, but have come under criticism. Politicians, sales representatives and consumer advocates complain, among other things, about product quality, a lack of controls and unfair competition conditions. They are calling for stricter regulation and better protection when shopping online.
HDE President Alexander von Preen complains that Temu and Shein often do not meet legal requirements, distribute unsafe goods and bring many domestic traders “to the brink of ruin”. These are strictly controlled and adhere to the law. The association once again called for tougher action against the platforms. “If nothing else helps, the plug has to be pulled for such massive rule violations,” said von Preen.
This is how Temu and Shein react
Temu commented on the criticism. A company spokesman said on request: “Temu gives thousands of traditional companies in Germany and across Europe access to a global customer base and supports them in increasing their sales, creating jobs and being internationally competitive.” The partnerships are to be further expanded.
A spokesman for Shein said: “Scapegoating competitors and thwarting fair competition with the same recurring and baseless accusations may generate headlines.” However, this is not a serious strategy that will help German retailers to be competitive.
He continued: “Today more than 600 German companies sell via our platform, create jobs and make a concrete contribution to the economy in Germany.” In the past three years alone, Shein has paid hundreds of millions of euros in taxes in this country and will continue to meet all obligations in the future.
EU introduces new processing fee
In the fight against the flood of small packages from online purchases in third countries, a new processing fee will apply in the EU from November for every product ordered online and imported into the EU. The height has not yet been determined. The processing fee is in addition to planned new customs fees.
So far, parcels with a value of up to 150 euros can be imported into the international community duty-free. From July, however, a tax of three euros will apply to every package with a goods value of up to 150 euros. This regulation is temporary until a new digital platform launches and then all goods imported into the EU will be subject to customs duties starting from the first euro.
The EU Commission is also targeting Temu and Shein for possible violations of the Digital Services Act. Investigations are underway against both companies. In October, the Federal Cartel Office initiated proceedings against Technology Limited, the company behind Temu. The authority is investigating the suspicion that the online marketplace could set unacceptable pricing requirements for retailers in Germany.
