A digital illustration representing the flow of low-value transactions across the globe.

The Rise of Tiny Buys: How Low-Value Transactions Are Reshaping Global Trade

Rhea Morgan in Business & Economy December 2025 • 4 min read.

"E-commerce and fast fashion are driving a surge in small international purchases. What does this mean for consumers and the future of trade?"

International trade is undergoing a silent revolution. It's not about massive cargo ships or huge deals between corporations, but about the everyday consumer making small purchases directly from overseas. These low-value transactions, defined as those under 150 euros in the European Union, are rapidly increasing their share of the global trade landscape.

A recent study analyzing Spanish trade data from 1997 to 2023 reveals a dramatic shift. The share of low-value transactions in the total number of transactions has skyrocketed, jumping from 9% to 61% for exports and 14% to 54% for imports. This surge is transforming how goods flow across borders and impacting businesses and consumers alike.

So, what's driving this trend? The rise of e-commerce platforms like Shein and Temu, coupled with the fast-fashion strategies of clothing companies, are key factors. These forces are creating a world where buying directly from international producers is easier than ever, but also raising new questions about trade policy, consumer behavior, and environmental sustainability.

E-Commerce: The Gateway to Global Micro-Trade?

A digital illustration representing the flow of low-value transactions across the globe.

The internet has democratized international trade, giving consumers unprecedented access to goods from around the world. E-commerce platforms act as virtual marketplaces, connecting shoppers directly with manufacturers and suppliers, often bypassing traditional retail channels. This direct-to-consumer model is particularly evident in the rise of Chinese e-commerce giants.

Platforms like Shein and Temu have revolutionized the way people shop internationally. They offer a vast selection of low-priced goods, often manufactured in China, and ship them directly to consumers worldwide. Their strategy involves rapid product cycles, aggressive marketing, and a seamless online shopping experience. While consumers benefit from the convenience and affordability, this model also raises concerns about labor practices, product quality, and environmental impact.

Wide Selection: Access to a diverse range of products, many previously unavailable to international consumers.
Affordability: Competitive pricing due to direct sourcing and streamlined supply chains.
Convenience: Easy online shopping experience with global shipping options.
Global Reach: Connects consumers with manufacturers from around the world.

This surge in e-commerce-driven low-value imports has significant implications. Traditional retailers face increased competition, while customs agencies struggle to process the growing volume of small packages. Furthermore, the ease of online shopping may encourage overconsumption and contribute to environmental problems through increased shipping and returns.

The Future of Trade: Small Packages, Big Impact?

The increasing share of low-value transactions is more than just a shopping trend; it's a fundamental shift in how international trade operates. As consumers continue to embrace e-commerce and demand affordable goods, these small purchases will likely play an even larger role in the global economy. This requires a careful consideration of trade policies, consumer behavior, and the environmental consequences of this changing landscape. Navigating these challenges will be crucial to ensuring a sustainable and equitable future for international trade.

About this Article -

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This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2407.15509,

Title: The Increasing Share Of Low-Value Transactions In International Trade

Subject: econ.gn q-fin.ec

Authors: Raúl Mínguez, Asier Minondo

Published: 22-07-2024

Everything You Need To Know

What defines a low-value transaction in the context of global trade, and how is this impacting international commerce?

Low-value transactions are international purchases, particularly those under 150 euros within the European Union. These transactions are significantly reshaping global trade. Data from Spanish trade from 1997 to 2023 shows a dramatic shift, with the share of low-value transactions increasing substantially for both exports and imports. This surge is driven by factors such as e-commerce platforms and fast-fashion, which allow consumers to easily make small purchases directly from overseas, transforming how goods move across borders.

How have e-commerce platforms, like Shein and Temu, contributed to the rise of low-value transactions, and what are the implications of this trend?

E-commerce platforms, like Shein and Temu, act as virtual marketplaces, facilitating direct-to-consumer transactions. They offer a wide selection of low-priced goods, often sourced from China, with convenient global shipping. This model increases the accessibility and affordability of international goods for consumers. However, this trend increases competition for traditional retailers and complicates customs processing. Additionally, it raises concerns about labor practices, product quality, environmental sustainability and may encourage overconsumption due to ease of access.

What benefits do consumers gain from the surge in low-value transactions driven by e-commerce, and how does this compare to the challenges presented?

Consumers benefit from the rise of e-commerce in several ways: they gain access to a wide selection of products from around the world, often at lower prices due to direct sourcing and streamlined supply chains. The convenience of online shopping and global shipping options further enhances the consumer experience. However, these benefits are counterbalanced by potential challenges, including concerns over product quality, the impact of increased shipping on the environment, and the possible encouragement of overconsumption. These benefits and challenges reflect a complex trade-off.

What is the role of fast fashion in the proliferation of low-value transactions, and how does this strategy influence global trade dynamics?

Fast fashion strategies, alongside e-commerce, are a key factor driving the surge in low-value transactions. Companies use rapid product cycles and aggressive marketing to connect directly with international producers, enabling consumers to buy goods at lower prices. This approach increases the volume of small, direct purchases from overseas. This shift affects global trade dynamics by increasing the share of low-value transactions and impacting trade policies, consumer behavior, and environmental sustainability.

What future challenges and opportunities arise from the increasing importance of low-value transactions in international trade?

The increasing importance of low-value transactions in international trade presents both challenges and opportunities. As consumers continue to embrace e-commerce, trade policies must adapt to handle the growing volume of small packages and ensure fair competition. Moreover, there's a need for sustainable practices to mitigate the environmental impact of increased shipping and returns. Navigating these challenges will be crucial for an equitable future for international trade. However, opportunities also exist for businesses and consumers to benefit from expanded access to global markets and diverse product offerings.