Austrian online retailers are facing increasing competition from international online stores, particularly those from Asia. One in three orders is now placed with platforms from that continent. The Chamber of Commerce is calling for concrete measures against platforms such as Shein and Temu.
“How can it be that only EU-based businesses have to comply with a multitude of requirements and reporting obligations, while Asian platforms that deliver to Europe do not have to do the same?”, is the rhetorical question raised by Rainer Trefelik, president of the federal trade division of the Austrian Chamber of Commerce.
Unhealthy development
His comments follow a study conducted by Johannes Kepler University Linz (JKU) on behalf of the government. The research reveals that Austrians now spend 10 percent of their shopping budget online. However, only 35 percent of online spending goes to local players, while the rest goes to international webshops.
65% of Austrian online spending goes to foreign players
It is already clear that Austrians are shopping more internationally than domestically. Amazon is the undisputed market leader in ecommerce in Austria, with Zalando and Ikea also performing well online. But now it is the Asian platforms that are gaining ground; one in three orders is believed to be going to Shein, Temu, and their counterparts. “They are increasingly catching up to local players”, says trade leader Trefelik, “and that is not a healthy development for Austrian retail”.
Exemption needs to end
Advocacy groups in Austria are calling for the European threshold of 150 euros for import duties on packages from outside the EU, currently set to end in 2028, to be abolished as soon as possible. They are also calling for stricter enforcement of existing laws and regulations regarding product safety to create a level playing field. Additionally, counterfeit shops should be dealt with more severely.
The German Retail Association (HDE) made a similar call this week, following numerous other business and consumer advocacy groups, as well as regulatory bodies.
