Shopee Cross-border E-commerce is accelerating its business focus towards Australia and Europe

As of July 25, 2025, due to the high tariffs imposed by the United States on low-priced Chinese goods, Shopee Cross-border E-commerce is accelerating its business focus to the Australian and European markets to avoid the impact of US policies and seek new growth points. The following is a key dynamic analysis:

1. The US tariff policy is tightened, and Shopee Cross-border E-commerce is accelerating its withdrawal

US tariff adjustment: From May 2, 2025, the United States will cancel the tax-free policy for small packages from China below US$800, and instead impose a 120% tariff or a fixed fee of US$200 per order, resulting in a surge in the costs of platforms such as Shopee Cross-border E-commerce28.

Business contraction:

Shopee Cross-border E-commerce's daily active users in the United States fell by 58%, and its business volume decreased by 72% from the peak in 20242.

Shopee Cross-border E-commerce's US market revenue share fell to 18%, while Europe rose to 40%2.

Price increase response: The price of some products on Shopee Cross-border E-commerce has increased by more than 50%, and household goods have even soared by 377%10.

2. Shopee Cross-border E-commerce Australia has become a new battlefield, but product safety issues are prominent

Advertising and user growth:

Shopee Cross-border E-commerce's advertising expenditure in Australia increased by 110%, and monthly active users increased by 50%13.

Shopee Cross-border E-commerce's advertising expenditure increased by 160%, and users increased by 15%3.

Low tariff advantage: Australia is tax-free for imported goods below 1,000 Australian dollars, allowing Chinese e-commerce platforms to maintain low prices15.

Safety hazards:

Hoodies sold by Shopee Cross-border E-commerce have caused severe burns to children due to flammability, triggering a recall19.

74% of Australian consumers mistakenly believe that e-commerce platforms have an obligation to ensure product safety, but the country lacks a "general product safety clause" similar to the European Union39.

3. Shopee Cross-border E-commerce has made the European market a strategic focus, but regulatory risks are rising

Advertising and user growth:

Shopee Cross-border E-commerce’s advertising spending in France increased by 115% and in the UK by 20%; Shopee Cross-border E-commerce grew by 45% in France and 100% in the UK610.

Shopee Cross-border E-commerce has more than 120 million users in Europe, and its GMV is expected to reach 58 billion euros in 20254.

New EU regulations challenge:

The EU plans to impose a fixed fee of 2 euros on parcels below 150 euros, with Chinese parcels accounting for 91%411.

France plans to push an “anti-fast fashion” bill, and Shopee Cross-border E-commerce and Shopee Cross-border E-commerce may face additional environmental taxes11.

Localized response:

Shopee Cross-border E-commerce cooperates with DHL and plans to ship 80% of European orders locally4.

Shopee Cross-border E-commerce has set up a design center in Europe to optimize product marketability11.

4. Future trends of Shopee Cross-border E-commerce: Compliance and localization are key

Supply chain adjustment: Shopee Cross-border E-commerce is accelerating the layout of overseas warehouses to reduce its reliance on the direct mail model411.

Semi-hosting model: reducing platform responsibility while improving localized operation capabilities11.

Emerging market expansion: Latin American markets such as Brazil and Mexico are growing rapidly, and Shopee Cross-border E-commerce has a market share of 9.9% in Brazil26.

Summary

The US tariff policy has forced Shopee Cross-border E-commerce to accelerate its shift to the Australian and European markets, but Australia's low regulatory environment may bring product safety risks, while the EU's tightening regulations require the platform to strengthen compliance and localization. In the future, the two companies need to find a balance between price advantages, supply chain adjustments and compliant operations to maintain global growth.