Chinese online retailers are expanding in Europe to attract new customers and increase sales, as cross-border e-commerce is contributing to the growth of China’s foreign trade amid external uncertainties. Eyeing the growing demand for online shopping in European countries, particularly among younger shoppers, Chinese e-commerce players are providing cost-effective products to local consumers by leveraging efficient logistics and supply chain networks to mitigate tariff pressures from the United States. AliExpress, Alibaba Group’s cross-border e-commerce platform, recently opened its services to local merchants in Poland. AliExpress said some local merchants can enjoy benefits like zero deposit and commission-free services for the first three months, and directly sell their products to consumers from Poland and countries around the world. AliExpress and Polish online shopping platform Allegro are the two most popular e-commerce platforms in Poland, the largest e-commerce market in Central and Eastern Europe. To better support the operations of local merchants, AliExpress has partnered with more than 10 leading overseas warehouse service providers to roll out “certified warehouses” covering the United States, Spain, France, Germany, the United Kingdom, and Poland. The certified warehouses will provide faster deliveries and smoother shopping experiences for overseas buyers.
According to global research firm Statista, the revenue of Europe’s e-commerce market is expected to reach USD707.9 billion in 2025, with a compound annual growth rate of 7.95%, and the figure is expected to increase to USD961.27 billion by 2029. Hong Yong, Associate Research Fellow at the Chinese Academy of International Trade and Economic Cooperation, said that “as European consumers have shown surging demand for online purchasing in the post-pandemic era, Chinese e-commerce platforms could further expand their footprint there by offering commodities with high cost-effectiveness and localized operation and services,” Hong said.
Temu, a cross-border e-commerce app owned by Chinese online discounter PDD Holdings, is expanding its presence in European countries in an attempt to diversify its customer base. According to Consumer Edge, Temu’s growth in the European Union surged more than 60% year-on-year in early May, with France leading at nearly 100% growth. TikTok Shop, the e-commerce marketplace of popular short-video app TikTok, which is owned by ByteDance, has made inroads into Europe with its rollout in Germany, France and Italy. Meanwhile, Chinese cross-border e-commerce platforms are facing mounting regulatory challenges. The EU is planning to levy a €2 handling fee for low-value small packages coming into the bloc, mainly from China. Cui Lili, Professor of Digital Economy at Shanghai University of Finance and Economics, said Chinese e-tailers should have a deep understanding of relevant laws, regulations and quality standards in foreign countries, and adjust supply chains to make products that meet local requirements, the China Daily reports.