With this new regulation, France is pushing AliExpress towards the exit

A few months ago, an Airbnb spokesman said the pandemic had forever changed our behavior. Difficult to accept at first, as the weeks went by we realized that this sentence finally took on its full meaning. It is a reality in many situations. The pandemic in particular has disrupted our buying habits. When we speak exclusively of French, we find that consumers are more likely to prefer online platforms to make certain purchases.

With all due respect to the French government, Amazon remains the most used market despite the strong growth of AliExpress. AliExpress is a marketplace of the Chinese group Alibaba, Amazon’s main competitor. The specialty of AliExpress is the sale of all kinds of products at very low prices. A benefit that AliExpress may not be able to highlight as of July 1st.

What are the upcoming changes?

From this date onwards, ordering a package on a website outside the European Union will cost much more. To put it simply: a package under 22 euros is so far not subject to any tax. From July 1, 2021, every parcel from a non-EU country is subject to VAT, i. H. A price increase of 20%.

For the government, this is a way to stop unfair competition between European and French sellers. While this decision doesn’t have such an impact on small packages, larger orders could be severely affected. Today, platforms like AliExpress allow people to buy computers and technological devices at low prices, but this will soon be a thing of the past.

This new regulation is likely to disrupt AliExpress’ activities in France to a large extent and, in the worst case scenario, could force the Chinese giant to withdraw from the market.

Back to top button