European revenue of the Chinese shopping app Shein fell in the second quarter by fourteen percent to €3.35 billion.
Europe’s share in total revenue dropped from 39.9% to 34%. This is evident from the first quarterly report that the e-commerce platform has published since it was listed on the stock exchange earlier this month.
The European revenues of apps such as Temu, Shein and AliExpress are being closely watched, because since 1 July the shops have been subject to import duties of €3 per product category ordered. Shein’s figures indicate that the levy is working and is leading to fewer orders.
Turnover figures in themselves do not yet say everything, because Shein also states that it has increased product prices in Europe.
Moreover, Shein is in the process of introducing a marketplace model. This could mean that the company itself sells less in Europe, but does receive service fees for the platform work performed.
Parallel to these developments, Shein has also reduced its online advertising budgets in the EU. Marketing expenditure fell by 4.1%.
Viewed globally, there is volume growth with a declining order value. Revenue per order fell in a year from €35 to €32, a decrease of 6%.
Shein’s overall revenue barely grew, rising by 1% to €17.7 billion. The number of orders increased by 7.6% to 298 million and the number of customers by 14.6% to 291 million.
Shareholders were left with net profit of €200 million. They punished the share with a price drop of 10.7% after the figures were released.
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