Shein Invests €500 Million in Polish Logistics Centre as EU Parcel Tax Takes Effect

Fast-fashion retailer Shein announced on Wednesday that it will invest €500 million to expand its European logistics centre near Wrocław, Poland. The move aims to speed up deliveries and reduce the impact of new EU taxes on low-value parcels sent from outside the bloc.

The European Union introduced a €3 charge in July for parcels worth less than €150, with an additional €2 added from 1 November. The measures were designed to limit what the EU considers unfair competition from e-commerce platforms such as Shein, Temu and AliExpress, which ship large volumes directly from China.

Shein has already felt the pressure in Europe: sales dropped sharply in the second quarter, contributing to a 67% fall in the company's net profit. Expanding warehousing within the EU allows Shein to store more products locally and avoid some of the new parcel-handling charges.

"Through this investment, we are building more efficient, flexible and resilient European operations," said Leonard Lin, Shein's global head of public affairs.

By the end of 2026, Shein expects its Polish hub to employ more than 10,000 people and use 6,500 autonomous robots. Customers in certain European markets will be able to receive items from the Polish warehouse within 48 hours.

The expansion reflects a wider shift among Asian e-commerce platforms, which are rethinking their model of shipping cheap parcels directly from China to European consumers under the new regulatory framework.