The European Union’s parcel delivery market shows no evidence of structural competition problems, according to a new study by Copenhagen Economics prepared for PostEurop. The report comes as the European Commission reviews the EU regulatory framework for postal and delivery services and considers whether a future EU Delivery Act should extend regulation to e-commerce parcel delivery.

The study examines whether parcel delivery services linked to online shopping operate under effective competition. It focuses on three main areas: market structure, firm conduct, and market performance. According to the report, the evidence points to a sector with multiple operators, active entry, moderate margins, and a wide range of delivery options for consumers.

The issue has become more important as e-commerce continues to reshape the postal and logistics landscape in Europe. Letter volumes have been declining, while parcel volumes linked to online retail have grown. This has created a policy question for regulators: should e-commerce parcel delivery be treated as part of traditional postal regulation, or should it remain mainly governed by competition law and general market rules?

Parcel delivery markets in Europe

Copenhagen Economics argues that the current evidence does not support broad ex ante regulation of e-commerce parcel delivery. The report says that any new regulation should be based on a clear theory of harm and evidence of market failure. Without such evidence, it warns that regulation could create the risk of regulatory failure by weakening investment, innovation, and competitive pressure.

One of the report’s central findings is that e-merchants have significant bargaining power in the parcel delivery market. Online retailers and platforms are the direct buyers of delivery services. They select operators, negotiate contracts, and decide which delivery options are offered to consumers at checkout. Large e-commerce companies, in particular, can use their parcel volumes to negotiate better prices and service conditions.

The report also highlights that the European parcel delivery market includes a wide range of operators and business models. These include national postal operators, pan-European carriers such as DHL, DPD, UPS, GLS, and FedEx, regional providers, out-of-home delivery specialists, consolidators, and vertically integrated platforms such as Amazon, Allegro, and Vinted. This variety suggests that competition is not based only on price, but also on speed, convenience, network coverage, tracking, and returns.

Market concentration in parcel delivery is also lower than in traditional letter mail. The report states that the leading operator in parcel markets typically holds a share of around 37 to 50 percent, while the main operator in letter markets often holds between 82 and 94 percent. This difference is important because it shows that parcel delivery has a more distributed competitive structure than legacy postal services.

The study also finds that entry barriers in parcel delivery are relatively low. New operators can enter by focusing on specific parts of the value chain, such as last-mile delivery, parcel lockers, regional networks, or cross-border consolidation. The report notes that the number of domestic and cross-border parcel delivery operators has increased over the past decade, suggesting that new companies have been able to enter and expand.

Profitability levels also appear moderate. According to Copenhagen Economics, parcel operators’ EBIT margins typically ranged between 2.5 and 9 percent, averaging 5.5 percent in 2025. The report argues that these margins are not consistent with systematic excessive pricing. It also says that higher prices for cross-border delivery largely reflect higher costs, including longer distances, coordination between operators, customs procedures, and lower volumes.

For consumers, the report finds that parcel delivery services are generally accessible and affordable. Online shoppers across Europe can often choose between home delivery, parcel lockers, and pick-up or drop-off points. The report also says service quality is broadly similar across urban and rural areas, with reliable, timely delivery and high consumer satisfaction.

However, the report does not suggest that the market is free from all concerns. It acknowledges that competition issues can arise in specific cases, particularly where firms hold strong positions or where platform power affects logistics markets. But it argues that these concerns are better addressed through existing competition law rather than a broad new regulatory framework for parcel delivery.

The policy conclusion is clear: Copenhagen Economics says a new EU Delivery Act should avoid imposing sector-specific regulation on e-commerce parcel delivery unless clear market failures are demonstrated. It also argues that extending the postal universal service obligation to e-commerce parcels could create an uneven playing field between universal service providers and other parcel operators.

For Europe’s e-commerce sector, the debate matters because delivery is now a core part of the online shopping experience. Fast, affordable, and reliable parcel delivery affects conversion rates, customer satisfaction, marketplace competition, and cross-border trade. As the EU considers its next regulatory steps, the report suggests that policymakers should be cautious about applying traditional postal rules to a fast-changing parcel delivery market.

Founded in Stuttgart in 1881 and regarded as one of Germany’s long-established retail brands, Breuninger aims to expand its premium position in fashion, beauty, footwear and lifestyle products across Europe.

Local Language and Regional Logistics Strategy

The company will offer consumers in Denmark, Sweden and Romania a fully localized online shopping experience. Users will be able to use the platform in their own languages. It was announced that PostNord and DHL will be collaborated with for delivery operations.

Breuninger CEO Holger Blecker stated in his statement on LinkedIn that the company wants to take the premium fashion experience beyond physical stores and reach a wider customer base. Blecker used the following statements in his statement: “Our online store launch in Denmark, Sweden and Romania is an important milestone in Breuninger’s growth journey in Europe. Thus, we now operate in 13 European countries.”

Breuninger’s First Major Expansion Since 2022

Breuninger first started its online growth process in Europe with Austria. The company then expanded into Switzerland and became active across the entire DACH region. The brand, which later entered the Polish market, launched operations in the Netherlands, Belgium, Luxembourg, Spain and Italy in 2022. Shortly afterward, Czechia also joined the company’s active markets.

The Denmark, Sweden and Romania move became the company’s first major European expansion in nearly four years. In the new markets, consumers will be offered online sales in clothing, footwear, cosmetics and home living categories.

Romania and Sweden Stand Out in E-Commerce

The company management describes the three newly added countries as “attractive markets with high potential.” In particular, the increasing interest in premium and luxury fashion products played a decisive role in Breuninger’s growth strategy. Industry data also supports this strategy. While Romania has been one of the countries where the number of consumers shopping online in Europe has increased the fastest over the last 10 years, Sweden’s e-commerce market recorded double-digit growth last year.

The Marketplace Model Is Expanding

Breuninger continues to expand its marketplace model by moving beyond a structure that sells only its own products. The marketplace system, which enables external brands and sellers to sell through the platform, has long been actively used in Germany. As of 2026, this model has also been launched in Austria and the Netherlands. It is stated that the company plans to expand its marketplace infrastructure to other European countries in the coming period.

The acquisition marks another major milestone for fulfilmentcrowd, which is backed by private equity firm Palatine. With the addition of Fulfilment.nl, the company’s European fulfilment network now expands to seven fulfilment centers, supporting ecommerce brands looking to scale internationally with faster and more localized delivery solutions.

According to the company, the Netherlands was selected as a strategic expansion market due to its role as one of Europe’s most important logistics hubs. Fulfilment.nl brings local operational expertise, strong customer relationships, and scalable logistics infrastructure to the growing fulfilmentcrowd ecosystem.

Fulfilmentcrowd Strengthens European Ecommerce Logistics Network

The deal reflects a broader trend in the ecommerce logistics sector, where fulfilment providers are racing to build pan-European networks capable of supporting omnichannel retail growth and cross-border commerce. Industry observers say demand for localized inventory management and faster EU-wide delivery is increasing rapidly as ecommerce brands seek more efficient international operations.

fulfilmentcrowd stated that the partnership will combine:

• Local market expertise
• Advanced fulfilment technology
• Expanded EU delivery capabilities
• Scalable logistics infrastructure

The company also welcomed Fulfilment.nl founder Robin Gerrits, General Manager Mart van der Heijden, and the broader Dutch team as part of the acquisition.

The acquisition follows several recent expansion moves by fulfilmentcrowd, including new fulfillment locations in the United States and leadership team changes aimed at supporting global growth ambitions.

Source

The investment will cover both infrastructure development and operational spending. Amazon confirmed that the funds will support the construction of new logistics centers, upgrades to its existing fulfillment network, and the expansion of AWS cloud and AI capabilities in France. The company says the initiative aims to deliver faster shipping, broader product selection, and improved operational efficiency while also reducing environmental impact through a more localized logistics model.

New Logistics Centers to Drive Job Creation

Amazon revealed that several new distribution facilities will begin operations starting in 2026. Planned sites include Illiers-Combray, Beauvais, Colombier-Saugnieu, and Ensisheim. Together, these facilities are expected to generate more than 7,000 permanent jobs over the next few years. �
Amazon News +2
The expansion reflects Amazon’s growing focus on strengthening European logistics capabilities amid rising e-commerce demand and increasing competition from Asian retail platforms. France continues to be one of Amazon’s key strategic markets in Europe, supported by a growing digital economy and strong consumer demand for fast delivery services.

France Strengthens Its Position as an AI and Cloud Hub

A significant portion of the investment will also be directed toward Amazon Web Services and artificial intelligence infrastructure. France has recently emerged as a major European hub for AI development, attracting investments from global technology companies including Amazon and Microsoft.

Amazon stated that expanding its cloud infrastructure in France will help businesses, startups, and enterprises accelerate AI adoption and digital transformation initiatives. The company previously invested over €1.2 billion in France in 2024 to strengthen logistics and AWS infrastructure, making this latest commitment a substantial escalation of its long-term strategy in the country.

France Continues to Attract Global Tech Investments

The announcement also reinforces France’s ambition to position itself as a leading European destination for international technology investments. The country has increasingly attracted large-scale commitments tied to AI, cloud computing, logistics, and advanced digital infrastructure.

As competition intensifies across Europe’s e-commerce and AI sectors, Amazon’s latest investment signals growing confidence in France’s long-term role within the global digital economy.

Source

Travel and Tourism remained the country’s largest online sector, generating more than €22 billion in sales. Marketplaces followed with €17.1 billion, while Leisure ranked third with €13.4 billion, showing the continued strength of experience-driven and platform-based digital spending.

Italian E-Commerce Growth Reflects a More Mature Digital Market

The report also highlights Italy’s broad digital adoption. The country counted 53.1 million internet users, equal to an internet penetration rate of 89.9%. On average, 44.1 million people used the internet monthly, while 37 million were online on a typical day.

Italian online businesses are now focusing more heavily on improving website performance, technology, and customer experience. These priorities were followed closely by AI adoption and marketing investment, indicating that companies are shifting from basic digital presence toward more advanced optimization strategies.

Cross-border activity is also concentrated mainly in Europe. Germany leads as the top foreign market for Italian online stores, followed by France and Spain. Outside Europe, the United States remains the most notable destination for Italian e-commerce operators.

Source: Ecommerce News Europe

The report evaluates companies based on several factors, including sales performance, SEO indicators, international market presence, cross-border visitors, brand authority and local customer options. Ikea kept its leading position, while Jysk moved up from fifth place to second. H&M remained in third place.

Retail Leaders Dominate Cross-Border Sellers in Europe

The top three companies all come from the Nordics and have strong physical retail backgrounds, showing that store-based brands continue to play a major role in online international commerce. Germany’s Zalando is the first pure online player on the list.

Cross-Border Commerce Europe estimates that cross-border ecommerce spending in Europe reached 108 billion euros in 2025, excluding travel. The TOP 500 companies generated 86 billion euros in cross-border online sales, marking 25 percent growth compared to the previous year.

Despite this growth, the market is entering a slower and more stable phase, shaped by macroeconomic pressure and a stronger focus on profitability and operational efficiency.

Source

Read more e-commerce news on WORLDEF.

The change comes at a time when low-value parcel volumes remain exceptionally high across the region. In 2025, more than 5.8 billion low-value e-commerce parcels were shipped into the EU. Until now, many of these shipments were exempt from customs duties if they remained below the €150 threshold, allowing international sellers to maintain competitive pricing.

End of Duty-Free Imports Adds New Cost Layers

From mid-2026, that cost equation will begin to change. Under the new approach, imports could become subject to customs duties regardless of order value. The EU is also introducing a temporary €3 customs duty per item category, tied to HS6 product classifications.

This means mixed-product orders may trigger multiple fees. For example, a parcel containing a shirt and jeans could be charged separately for each category, increasing total costs per shipment.

Additional Country-Level Fees Begin to Appear

Some EU countries are already implementing additional fees ahead of the broader reform. Italy plans a €2 per parcel charge, while Romania has introduced fees of around €5 per parcel. In France, a €2 per product category fee has also been applied.

The EU has additionally approved a €2 handling fee per parcel, expected to roll out across member states later in 2026. These costs will be applied alongside VAT and customs duties.

Impact on Pricing, Logistics and Strategy

For e-commerce businesses, the shift introduces both financial and operational challenges. Lower-value orders may become less viable under current pricing models, while customs classification and compliance requirements become more critical.

The broader shift signals a move toward stricter control of cross-border e-commerce imports in Europe. As the new framework takes effect, brands will need to adjust their pricing strategies, logistics structures, and customer experience to adapt to a more regulated environment.

Source

The strong performance reflects a broader shift in consumer behavior. As inflation and rising living costs continue to pressure households, more consumers are turning to second-hand platforms to save money and generate extra income. This trend has positioned Vinted not just as an alternative shopping channel, but as a mainstream marketplace within Europe’s e-commerce ecosystem.

In parallel with GMV growth, Vinted’s revenue rose by 38% to €1.1 billion, underlining its ability to scale both transaction volume and monetization. The company has now firmly established itself as one of Europe’s leading digital marketplaces, with operations spanning more than 20 countries and a growing user base driven by affordability and sustainability.

Vinted Drives Resale Economy Growth Across Europe

A key driver behind Vinted’s growth is its continued expansion beyond traditional fashion categories. While women’s and children’s clothing remain core segments, the platform has increasingly diversified into areas such as sports equipment, collectibles, and electronics. This broader product offering is attracting new user segments and increasing transaction frequency.

At the same time, Vinted is investing heavily in infrastructure. Initiatives like Vinted Go (logistics) and Vinted Pay (payments) are designed to strengthen its ecosystem and reduce operational costs over time. The platform now provides access to hundreds of thousands of pick-up and drop-off points across Europe, improving convenience and delivery efficiency.

However, this aggressive growth strategy has come with trade-offs. Despite record GMV and revenue, profitability declined, with net profit falling to €62 million due to increased investments in expansion, logistics, and market development particularly in competitive regions like Germany.

Still, the long-term outlook remains strong. Vinted’s leadership emphasizes cost efficiency and ecosystem development as core pillars for making second-hand commerce the “first choice” for consumers. As resale continues to gain traction, the platform is well-positioned to capitalize on both economic and sustainability-driven demand.

Ultimately, the latest results highlight a fundamental shift in retail dynamics. Second-hand commerce is no longer niche – it is becoming a defining force in Europe’s digital economy, challenging traditional retail models and reshaping how consumers buy and sell goods online.

Source

Buy Now, Pay Later (BNPL) services are now used by 50% of consumers across Europe, according to data published by Ecommerce News Europe.

The report shows that BNPL has moved into the mainstream, with many consumers using these services multiple times per year as part of their regular online shopping behavior.

Adoption differs by market

Despite strong overall uptake, usage varies significantly between countries.

In markets such as Switzerland, BNPL penetration remains lower, with roughly one in four consumers using these services. The gap highlights the influence of local financial habits, credit culture, and regulatory frameworks across Europe.

Flexible payments reshape checkout

The growth of BNPL reflects a broader shift in payment preferences.

Installment-based options often interest-free are increasingly integrated into the checkout experience, offering consumers greater flexibility compared to traditional credit products. As a result, payment methods are playing a more central role in purchase decisions.

Regulatory scrutiny increases

The expansion of BNPL has drawn attention from regulators across the region.

Authorities are assessing the need for stricter consumer protection measures, including improved transparency, clearer terms, and stronger affordability checks. Proposed updates to consumer credit rules are expected to address gaps related to BNPL services.

Merchants respond to demand

For online retailers, BNPL is becoming a standard feature rather than an optional add-on.

Merchants are integrating these solutions to support conversion and align with evolving consumer expectations, while also navigating compliance requirements as regulatory oversight increases.

Source
Read more on WORLDEF.

The rise of cross-border e-commerce has fundamentally changed cargo dynamics across Europe. Instead of large, predictable shipments, logistics networks are now handling high-frequency, low-volume flows moving across multiple routes. This shift is forcing operators to rethink systems originally designed for scale, not agility.

At the same time, traditional hubs such as Frankfurt, Amsterdam, and Paris remain important – but they are no longer sufficient on their own. Logistics players across Europe are increasingly adopting multi-hub strategies, integrating secondary airports and regional fulfilment centres to reduce congestion and improve delivery performance.

Speed, Technology and New Trade Routes Take the Lead

Speed has become non-negotiable. Next-day delivery is rapidly turning into a baseline expectation across Europe, rather than a competitive advantage. To meet this demand, companies are relying more on air cargo and hybrid logistics models, especially for high-value and time-sensitive goods.

Technology is playing a defining role in this transformation. AI-driven forecasting, real-time tracking, and automated cargo handling systems are enabling logistics providers to operate with greater precision. Performance is no longer just about capacity – it is about visibility, coordination, and responsiveness.

Meanwhile, geopolitical developments and shifting trade corridors are adding new complexity. Airspace restrictions and evolving economic routes are forcing companies to rethink traditional pathways, accelerating the emergence of alternative gateways connecting Europe with Asia and the Middle East.

Infrastructure Pressure and the New Competitive Reality

This transformation is placing increasing pressure on infrastructure. Airports and logistics hubs across Europe must scale rapidly through automation, expanded cargo capacity, and specialised facilities. Without these investments, bottlenecks will become unavoidable.

Ultimately, Europe’s e-commerce gateways are no longer defined by location alone. They are defined by how efficiently they operate within a broader network. Competitive advantage is shifting from size to flexibility – and from physical infrastructure to intelligent, connected systems.

Source: Air Cargo Week