Non-EU players pressure Romanian online businesses, says ARMO study

Business Forum
Seven out of ten Romanian businesses anticipate a decline in sales due to unfair competition from international e-commerce platforms, primarily from Asia, shows a new study by the Romanian Association of Online Stores (ARMO).

Furthermore, 75% of respondents warn that small Romanian producers risk bankruptcy due to pressure from major players like Temu, AliExpress, Trendyol, and Shein. 

The study also indicates that 73% of businesses anticipate reduced profits, with 43% already confirming a drop in customer numbers. 

Concerns are also rising about a potential increase in low-quality products flooding the market, which 71% of businesses believe will harm consumer experience and the reputation of the entire Romanian online retail sector.

Temu and AliExpress are identified as having the most substantial impact on resellers and small businesses in Romania. Meanwhile, Shein and Trendyol disproportionately affect companies selling clothing, footwear, and accessories.

Looking ahead, nearly one in three (32%) affected merchants predict a continued decline in sales this year. Almost one in four local producers accuse Asian platforms of unfair competition through "dumping prices and tax evasion”, according to a press release.

In response, over half of businesses call for the introduction of customs duties on all goods imported from outside the EU, regardless of parcel value. They also suggested that foreign players should face the same tax regime as Romanian firms.

Cristi Movilă, President of ARMO, said: "We want non-discriminatory conditions for all players. As long as Romanian merchants pay full VAT, customs duties, labor taxes, and comply with EU standards and national legislation, we cannot accept that the same rules are optional for platforms outside the Union".

In 2024, e-commerce generated a turnover equivalent to 3.4% of Romania's GDP, with potential to reach the European average of 4.2%.

"Every euro lost through non-payment of taxes by non-EU platforms is a euro that the state recovers from honest Romanian entrepreneurs. If we don't close these loopholes, we risk losing a digital ecosystem that today contributes decisively to the modernization of the Romanian economy," stated Cristian Pelivan, Executive Director of ARMO.

The study was commissioned by ARMO and conducted by MIA Marketing between April 28 and May 13, 2025, surveying 511 Romanian online and offline businesses.

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Business Forum  |  1 August, 2025 at 6:03 PM
Business Forum  |  1 August, 2025 at 4:00 PM