Shein’s UK revenue reaches £2.58bn, overtaking Asos amid duty debate
Shein’s UK sales rose 26% to £2.58bn last year, taking it ahead of British rival Asos and adding to pressure on the government to change rules that exempt low-value imports from customs duty. The growth highlights the scale of online fast-fashion retailers whose model relies on shipping inexpensive orders directly from overseas to shoppers.
UK pre-tax profits increased 18% to £45.2m, while its UK workforce grew from 91 to 113 and it paid £11.2m in current tax. The UK exemption covers overseas parcels worth £135 or less; former chancellor Rachel Reeves said it would be removed by 2028, though retail leaders want action sooner. The EU has begun phasing out its relief, and the US ended its exemption for Chinese-made goods last year.
- Shein’s UK revenue reached £2.58bn, overtaking Asos.
- Sales rose 26% and pre-tax profits rose 18%.
- Its growth is renewing calls to end the low-value parcel duty exemption.
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Shein is a Chinese online fashion retailer that sells inexpensive clothing directly to customers worldwide. It operates by shipping items individually from overseas to shoppers' homes, keeping prices low.
The UK currently exempts parcels worth £135 or less from customs duty, so most Shein orders arrive without import tax. This gives overseas retailers an advantage over UK-based competitors, which is why retailers have been pressing the government to remove the exemption.
Shein's UK sales now exceed those of Asos, a major British online fashion retailer, demonstrating the scale of this retail model. The government has committed to ending the duty exemption by 2028, though retail leaders want quicker action. The EU and United States have already started phasing out comparable exemptions for overseas goods.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The case rests on fairness and sustainability. British retailers like Asos pay full duties and taxes on their stock, whilst overseas competitors like Shein exploit the £135 exemption to ship directly to UK customers duty-free, creating an unequal playing field. This structural advantage enables Shein to undercut domestic businesses, harming UK companies and workers—evident in Asos's struggles against Shein's 26% growth. Since other major economies are phasing out similar exemptions, the UK should follow suit to prevent tax avoidance, protect employment, and ensure all businesses compete fairly under the same rules.
The case against
The case prioritises consumer welfare and economic dynamism. Removing the exemption would directly raise prices for millions of British shoppers, disproportionately affecting low-income households dependent on affordable fashion. Rather than protecting incumbents from competitive pressure through tariff barriers, the solution is for UK retailers to adapt their business models. Shein does contribute to the UK economy through employment and tax payments; the exemption reflects genuine cost advantages in logistics, not pure tax avoidance. A competitive marketplace benefits consumers more than protectionist measures that shield established rivals.
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Originally published by The Guardian as “Shein outsells British rival Asos as UK revenue hits £2.58bn”.