Online fashion giant Shein has warned that it may increase its prices in Europe, which includes deliveries to Spain and the Canary Islands, as new charges on low-value imports increase the cost of shipping products to customers.

The Asian fashion retailer has acknowledged that the new measures are increasing its logistics costs and says the impact could ultimately be passed on through higher prices.

The warning follows the introduction on 1st July of a €3 charge on products entering Europe in different customs categories, with a further €2 customs handling charge due to be introduced in November.

The changes could have significant consequences for shoppers who regularly order inexpensive clothing and other products online from platforms shipping goods directly from outside the EU.

Shein warns of higher costs in Europe

Shein outlined the potential impact in a draft prospectus prepared ahead of its planned listing on the Hong Kong Stock Exchange, where the company is expected to list more than 341 million shares.

The retailer pointed to its recent experience in the United States as an indication of what could happen in Europe.

Changes in the US ended the so-called "de minimis" exemption, which previously allowed parcels worth less than $800 (approximately €700) to enter the country without being subject to normal tariffs and inspections.

Shein says removing that exemption negatively affected its US sales and overall net revenue growth while also increasing logistics costs as a proportion of its income.

The company now fears European measures affecting low-value shipments could produce a similar result.

Europe accounts for a third of Shein's revenue

The European market is particularly important to Shein. Approximately one-third of the company's net revenue came from Europe in 2025, a proportion that remained similar during the first quarter of 2026.

Shein has warned that because low-value shipments into the EU are now becoming more expensive, the changes could have a "significant adverse effect" on its business.

The company says it is still too early to determine the full impact but believes trends in Europe could ultimately be similar to, or even greater than, those experienced in the United States.

For consumers, one way the company could compensate for higher logistics and customs costs would be through increased retail prices.

Shein posts $99 million quarterly loss

The warning comes as Shein's financial results show increasing pressure on the business.

Operating costs increased by 2.2% during the first three months of 2026 to $8.79 billion (€7.73 billion).

The company recorded a $99 million (€87 million) loss during the same period, compared with a net profit of $395 million (€347 million) previously.

However, revenue continued to grow, reaching $9.05 billion (€7.95 billion) during the first quarter, an increase of 1.1% compared with the same period a year earlier.

Product sales remained broadly stable at $7.75 billion (€6.82 billion), while revenue from services increased by 9% to $1.29 billion (€1.13 billion).

Increased scrutiny of fast-fashion companies

Shein has also warned investors that environmental regulations and increased scrutiny of the fast-fashion industry could add further costs.

Regulators around the world are paying increasing attention to sustainability, waste and the environmental impact of large fashion retailers.

Shein acknowledges that the perception of excessive resource consumption and waste within the fast-fashion industry could result in companies such as itself facing additional regulations or specific measures.

For European customers, however, the more immediate concern will be prices. With additional charges now affecting low-value imports and another customs handling fee expected in November, the days of ultra-cheap online orders from Shein could become more expensive if the retailer decides to pass its additional costs on to shoppers.