Rory O’Connor CEO at delivery management platform Scurri warns e-commerce retailers not to simply think about a customs workaround but look again at all their processes and provides seven key actions
The end of de minimis customs exemptions means that the international e-commerce model based around large assortments, competitive prices and high volumes of low-value parcels sent directly to consumers is over, at least for some companies as we have been reading in the media.
After the EU abolished its exemption for consignments worth up to €150, introducing an interim €3 duty on low-value imported items from July 2026, the immediate result was higher costs and greater complexity. But retailers should resist treating this as simply another charge to absorb or pass on. It challenges the commercial assumptions behind product pricing, fulfilment location, carrier selection, delivery promises and returns. The answer should not be a temporary customs workaround, but a redesign of the cross-border delivery model.
- Establish the true landed cost of every order
Retailers first need to understand the complete landed cost of an order at product, basket and destination level. This should include transport, duties, taxes, clearance charges, carrier surcharges, failed deliveries and potential returns.
An average figure applied across the business will not be sufficient. A €3 duty may have little effect on a high-value product but destroy the margin on a low-priced item. In the EU, the charge can also apply to different item categories within a parcel, making its composition as important as its overall value.
Scurri research among 150 large UK retailers indicates that many lack the necessary visibility. Only 35% have clear visibility and a defined cost for the principal delivery errors affecting their operations. 38% track some but not all costs, while another 25% cannot measure them precisely or have little visibility.
- Reconsider where inventory sits
Retailers sending individual parcels from distant source markets should compare that model with importing inventory in bulk and fulfilling orders regionally. Consolidated imports followed by domestic distribution may prove more economical than clearing thousands of consumer parcels separately.
Regional inventory brings its own risks, including forecasting errors, additional working capital and unsold stock. A hybrid approach may therefore work better; fast-moving lines can sit closer to customers, while specialist or less predictable products continue to be fulfilled internationally.
The decision should reflect order density, product value, demand predictability, delivery expectations and returns volumes rather than a single global fulfilment rule.
- Make carrier selection dynamic
The end of de minimis changes the relative economics of carriers and delivery services. A service that was competitive under simplified duty free arrangements may no longer provide the best combination of cost, customs clearance and delivery performance.
Retailers should avoid hardwiring international orders to one carrier. Selection should respond dynamically to destination, product category, order value, customs requirements and promised delivery date.
A delivery management platform can apply these rules to each order, while enabling retailers to introduce alternative services without rebuilding their checkout and warehouse systems. It also provides the data needed to compare expected costs with carrier invoices, delivery outcomes and surcharges.
This is important as retailers pursue greater overseas growth. 17% of those surveyed by Scurri plan international ecommerce expansion during the next year, despite a similar proportion expecting tariffs to increase consumer prices.
- Remove customs surprises from the customer experience
Retailers must decide whether duties will be collected at checkout or demanded when the parcel reaches the customer. Unexpected charges at the door can lead to refused deliveries, complaints and expensive returns.
Where possible, presenting a transparent landed price and using a duties paid service creates a clearer proposition. Customers understand the full cost before purchasing, while retailers retain more control over the delivery experience.
This transparency should extend across product pages, checkout and delivery communications. Hiding the additional cost until the final stage may protect conversion temporarily, but it risks damaging trust. A higher price that is clearly explained is preferable to a lower price that turns out not to be real.
- Improve customs data before increasing automation
Customs performance depends on accurate product descriptions, declared values, commodity codes and country of origin information. Poor data can lead to incorrect duties, delays, inspections and rejected shipments.
This information should form part of the product record and be validated before an item is offered in an international market.
Automation can then apply the data consistently, flagging missing information and identifying shipments likely to encounter problems. 41% of retailers believe AI could help resolve international compliance and tax issues, while 36% see an opportunity to address incorrect shipping data. However, AI cannot compensate for inaccurate underlying information, it will simply process the mistakes faster.
- Redesign returns alongside outbound delivery
Cross-border returns become more problematic when duties increase. Retailers must determine whether charges can be recovered and whether products should be shipped back across the border or consolidated, resold, repaired or disposed of locally.
Returns policies must therefore be considered alongside outbound delivery. Retailers need to understand the full cost and likely recovery value of a return, applying different routes according to product, destination and condition. 23% of large retailers say improving the efficiency and cost of returns is a principal objective for the next 12 months, making it the most frequently selected priority in the research.
- Treat regulatory volatility as permanent
Retailers should not assume the disruption is temporary or that the old economics of low value international ecommerce will return. Customs rules may continue to change, but the direction is towards greater scrutiny, more data and tighter enforcement.
Businesses need operations that can adapt without the need to repeatedly redesign checkout, warehouse and carrier systems. That means maintaining multiple carrier options, keeping customs data accurate, modelling costs continuously and using configurable delivery rules rather than manual decisions.
The end of de minimis means that retailers can no longer treat international delivery as an inexpensive extension of domestic fulfilment. The key to success is understanding costs at order level, positioning inventory intelligently, selecting carriers dynamically and telling customers exactly what they will pay.
