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Shein and Temu Built EU Warehouses to Beat the Customs Charge — Here’s the Model US Brands Can Follow

From 1 July 2026, Shein and Temu are both shipping to EU consumers from EU-local warehouses — no per-order customs charge, delivery in 2 to 3 days. Shein’s Wrocław hub opened December 2025. Temu built equivalent capacity. Both made the same structural decision: stock inside the EU eliminates the per-order cost.

In This Article

01Why Shein and Temu invested in EU warehouses
02The scale of the warehouse build-out
03How the €3 charge stacks across an order
04What November 2026 adds to the cost
05How US brands replicate the model

Key Takeaways

►Shein built a 740,000 sq metre EU warehouse; Temu built equivalent capacity
►EU-local stock clears customs once; per-order charge eliminated
►November 2026: combined per-item cost rises to approx €5 for direct shippers
►The model Shein and Temu used is available to US brands at any scale

From 1 July 2026, every parcel entering the EU from outside carries a €3 customs charge per tariff heading. Shein and Temu saw this coming. Both built EU warehouse capacity before the charge went live, and both now supply EU consumers from inside the EU. Their stock crosses one border once, on the bulk inbound shipment. Every consumer order ships domestically after that. The €3 charge never applies.

740,000m² Shein's EU logistics hub near Wrocław, Poland, opened December 2025 — built specifically to ship to EU consumers from inside the EU. Source: Expandly Content / ChannelX, 2026.

Shein opened a 740,000 square metre logistics hub near Wrocław, Poland in December 2025. That is the size of 100 football pitches. A UK Midlands facility followed in May 2026, positioning Shein inside the EU and immediately adjacent to one of Europe's largest consumer markets simultaneously. Temu made equivalent moves. Both platforms can now deliver to EU consumers in 2 to 3 days, matching domestic delivery expectations, while competitors shipping from outside the EU are absorbing a per-order customs cost that stacks with every tariff heading in the consignment.

Under the new EU customs regime, a brand shipping three different products to an EU consumer — three tariff headings — pays €9 in customs charges on that single order. At 1,000 orders a month, that is €9,000 in customs costs that EU-local stock eliminates entirely.

From November 2026, the cost of direct shipping increases further. Structured product identifiers (PIDs) become mandatory for every parcel entering the EU, and a €2 customs handling fee applies per consignment. The combined per-item cost for brands shipping from outside the EU rises to approximately €5. The economics of direct shipping worsen on that date and do not improve after it.

  • Shein opened a 740,000 sq metre EU hub near Wrocław, Poland in December 2025; UK Midlands facility followed May 2026
  • Temu built equivalent EU warehouse capacity; both now supply EU consumers domestically
  • EU-local stock clears customs once on the bulk import — every consumer order ships without per-order customs cost
  • From November 2026, PIDs become mandatory and a €2 handling fee applies — combined per-item cost rises to approximately €5 for direct shippers

That is what Expandly's Netherlands warehouse does for the brands on the platform. Stock arrives into the EU on the inbound shipment, cleared once. Every EU consumer order ships domestically from there. The €3 per-order customs charge does not apply. November's €5 combined charge does not apply.

Expandly helps US ecommerce brands expand into Europe — compliance, marketplaces and fulfilment, all handled. We’ve supported 2,000+ brands make the move.

  • VAT registration handled across UK, Germany, Netherlands and all EU markets
  • EPR compliance managed from day one — packaging, WEEE, batteries and beyond
  • EU fulfilment from our Netherlands warehouse — fast access to the whole continent
  • IOSS registration and management for DTC shipments under €150
  • Real-time inventory and order management across all your active channels
  • Dedicated onboarding, compliance and success team alongside the platform

The bigger picture

EU Customs Reform accelerating the shift to local stock

The EU's removal of the €150 duty-free threshold is not just a tax change — it is a structural incentive for international brands to operate local inventory in Europe rather than shipping from home. Shein and Temu responded at scale and ahead of the deadline. For US brands, the same structural incentive applies at every revenue level. Expandly's Netherlands warehouse provides the EU fulfillment infrastructure that makes the model accessible to brands that are not building their own 740,000 square metre logistics hubs.

  • EU €3 per-tariff-heading charge applies from 1 July 2026; November 2026 adds PIDs and a €2 handling fee
  • Shein's Wrocław hub (December 2025) and UK Midlands facility (May 2026) position it for EU and UK domestic shipping
  • Expandly's Netherlands warehouse: brands enter the EU once on the bulk import and ship domestically from there

EU Cross-Border Ecommerce

European cross-border ecommerce reached €108 billion in 2025, representing 25% of the total European online market. The customs reform that took effect 1 July 2026 reshapes how that demand is served, not whether it exists.

€108bn

Cross-Border Commerce Europe, 8th Edition, April 2026

EU Customs: November 2026 Increase

From November 2026, structured PIDs become mandatory for all EU-bound parcels and a €2 handling fee applies per consignment. For brands still shipping direct from outside the EU, the combined per-item customs cost reaches approximately €5. Brands with EU-local stock are unaffected.

€5

Combined per-item cost from November 2026 for direct shippers (EU Council)

EU Fulfilment, Centrally Located

Inventory held in Expandly's Netherlands warehouse ships from inside the EU, with no cross-border delays or import friction for your customers. Your stock is positioned where your buyers are.

2,000+

brands fulfilled with Expandly

If this sounds like your world,
let's talk.

Expandly helps US ecommerce brands expand into Europe — compliance, marketplaces and fulfilment, all handled.

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