For merchants selling cross-border, this represents one of the biggest changes to international ecommerce operations since the introduction of IOSS. We're unpacking what de minimis is, why it's changing, what it means for brands, and how you can prepare.
What is the €150 de minimis threshold?
The de minimis threshold is a customs rule that allows low-value goods to enter a country with simplified customs treatment.
For many years, the EU has applied a €150 threshold. This means that goods imported into the EU with a value below €150 could benefit from simplified customs procedures and exemptions from customs duties.
Why is the EU removing it?
The growth of cross-border ecommerce has fundamentally changed the volume of goods entering Europe.
Millions of parcels now enter the EU every day from sellers and marketplaces located outside the region. EU regulators argue that the current system creates an uneven playing field for European retailers and makes it more difficult to enforce product safety standards, customs compliance, and consumer protection rules.
The reform is designed to:
- Create fairer competition between EU and non-EU sellers
- Improve customs oversight
- Strengthen product safety enforcement
- Reduce customs fraud and undervaluation
- Increase transparency across cross-border ecommerce
What will change on 1st July 2026?
From July 2026, low-value imports entering the EU will no longer benefit from the same customs duty exemption that currently applies to goods valued under €150. This means if you’re shipping directly into the EU, you should expect:
- Additional customs charges on low-value imports
- New customs reporting requirements
- Increased scrutiny of import declarations
- Changes to landed costs and fulfilment economics
For brands that rely heavily on direct-to-consumer international shipping, these changes may significantly affect profitability and operational processes.
What does this mean for ecommerce brands?
Increased import costs
Products that previously moved through customs with minimal charges may now attract customs duties or additional fees. You should review:
- Product margins
- International pricing strategies
- Shipping charges
- Profitability by market
Greater operational complexity
Cross-border shipping will become more complex as additional customs processes are introduced. You may need to review:
- Customs declaration processes
- Carrier relationships
- Duty collection methods
- International fulfilment strategies
Changes to the customer experience
Unexpected duties and customs charges are one of the biggest causes of customer dissatisfaction in cross-border ecommerce. Ensure customers understand:
- Any applicable duties
- Shipping timelines
- Delivery expectations
- Returns processes
before completing their purchase.
What can brands do to prepare?
1. Review your international order mix
Understand:
- Which markets generate the most revenue
- Which products are most commonly shipped internationally
- Average order values
- Current customs and duty exposure
2. Model future landed costs
Evaluate how additional customs duties could impact:
- Margins
- Pricing
- Shipping costs
- Customer acquisition economics
3. Explore regional fulfilment
For brands with significant EU demand, regional warehousing may become increasingly attractive. Potential options include:
- EU warehouses
- Third-party logistics providers
- Marketplace fulfilment programmes
- Distributed inventory networks
Options for how to integrate this into the checkout
The removal of the de minimis threshold doesn't just affect customs teams and operations. It has the potential to impact conversion rates, customer satisfaction, and international growth if implemented poorly.
The good news is that brands have options. The key is deciding where the additional costs and complexity should sit within the customer journey.
Option 1: Absorb the additional costs
Some brands may choose to absorb any additional customs duties and fees themselves. The advantage is a frictionless customer experience. Customers see no additional charges at checkout and receive their order without unexpected costs during delivery.
However, this approach can reduce margins and may not be sustainable for every business, particularly those operating with lower product margins or high international shipping volumes.
This option is often most effective for:
- High-margin products
- Premium brands
- Markets where customer acquisition is a priority
- Brands with significant repeat purchase rates
Option 2: Build the costs into product pricing
Another approach is to increase product pricing to account for the additional customs costs.This creates a more predictable customer experience because duties are effectively included within the product price.
The benefit is simplicity — customers avoid unexpected charges after checkout, and brands maintain greater control over margins. The challenge is ensuring pricing remains competitive against local and international competitors.
Option 3: Display duties and taxes at checkout
Many brands choose to calculate and display duties and taxes during checkout. This approach provides maximum transparency and reduces the risk of customers being surprised by additional charges after purchase.
While it can increase the total checkout price, customers generally respond better to known costs than unexpected fees introduced during delivery.
For many international brands, this represents the best balance between transparency, compliance, and customer experience.
Option 4: Charge duties on delivery
Some merchants may continue shipping under Delivered At Place (DAP) models, where duties are collected from the customer when the parcel enters the destination country. While this can reduce upfront costs for the merchant, it often creates the poorest customer experience.
Common outcomes include:
- Refused deliveries
- Increased support tickets
- Negative reviews
- Higher return rates
- Lower lifetime value
For most direct-to-consumer brands, this approach is becoming increasingly difficult to justify.
From 1 July 2026, the EU's €150 de minimis exemption ends and every parcel owes customs duty - but the real change is that the merchant, not the customer or the carrier, becomes the legal customs debtor. For brands selling into Europe, the ones who win will show the full landed price at checkout instead of a surprise fee at the border, because price certainty is what protects the sale. That is the infrastructure Swap is built to provide.
Juan Pellerano-Rendón, Chief Marketing Officer at Swap
Steps for a successful customer experience
Step 1: Set expectations before checkout
Regardless of which strategy you choose, transparency is critical. Customers should understand:
- Delivery timelines
- Duties and taxes
- Any additional fees
- Returns policies
before completing their purchase. Unexpected costs are one of the biggest drivers of dissatisfaction in cross-border ecommerce.
Step 2: Keep customers informed post-purchase
Once an order has been placed, customers should receive proactive updates throughout the delivery journey. This includes:
- Shipping confirmations
- Tracking updates
- Customs clearance notifications
- Delivery updates
The more visibility customers have, the lower the likelihood of support tickets and delivery disputes.
Step 3: Build workflows for customs-related issues
Customs delays and import questions are inevitable. Brands should ensure customers have easy access to:
- Self-service tracking
- Delivery status information
- Support channels
- Customs guidance
This reduces pressure on support teams while improving customer confidence.
Step 4: Measure the impact
As the new rules take effect, monitor:
- International conversion rates
- Checkout abandonment
- Customs-related support tickets
- Return rates
- Delivery satisfaction
- International customer retention
These metrics will help identify where additional friction is being introduced into the customer journey.
Don't panic: we've seen this before
While the EU's removal of the €150 de minimis threshold represents a significant change, it isn't the first major disruption to cross-border ecommerce.
Brands selling into the United States faced similar challenges following recent de minimis reforms and tariff changes. Many merchants experienced uncertainty, increased operational complexity, and concerns around rising costs.
However, the brands that succeeded were those that adapted quickly. They reviewed their fulfilment strategies, invested in better cross-border infrastructure, improved customer communications, and partnered with specialists who understood international commerce.
Today, many of those same brands continue to grow successfully in the US despite the regulatory changes. With the right cross-border strategy, fulfilment partners, technology stack, and customer experience, merchants can continue to scale internationally while protecting both margins and customer satisfaction.
If you're unsure how these changes could affect your business, book a Cross-Border Commerce Audit with the Domaine team. We'll help you evaluate your current setup, identify potential risks, and build a strategy that supports sustainable and scalable international growth.
