What Are Shopify Duties and Import Taxes?
Shopify duties and import taxes enable merchants to display and collect duties and tax estimates during checkout. This ensures customers have a clear understanding of the total cost of their purchases, minimizing surprises upon delivery.
Key Benefits
- Transparent pricing for international customers.
- Improved customer trust and satisfaction.
- Reduced parcel rejections with prepaid duty labels.
New Availability Across All Shopify Plans
As of February 2, 2025, Shopify duties and import taxes are accessible to merchants on all Shopify plans. Previously, this feature was exclusive to Advanced Shopify and Shopify Plus plans. Now, every Shopify store owner can leverage this powerful tool to streamline their international sales.
Pricing Details
Shopify has introduced a temporary 0.5% transaction fee for orders where duties and import taxes are calculated at checkout. Note the following exceptions:
- No transaction fees for orders shipped within the same country or region as the store.
- No fees for orders shipped between EU member countries.
- No fees for abandoned checkouts.
Options for Managing Tariffs
1. Use the Duty Calculator
Activate the built-in duty calculator in your Shopify admin under Settings > Taxes and Duties. This tool helps display and collect duties at checkout, ensuring transparency for your customers. Pair this feature with duty prepaid labels for optimal results.
2. Buy Duty Prepaid Labels
Purchase prepaid duty shipping labels via third-party Shopify apps to ensure smooth customs clearance and avoid customer surprises.
3. Utilize Managed Markets for U.S. Merchants
Eligible U.S.-based merchants can leverage Managed Markets for automated duty calculations and prepaid shipping labels at negotiated rates, delivering a seamless checkout experience.
4. Customize Store Messages
Tailor your store messaging to display clear information about duties being paid at checkout. This builds trust and enhances the shopping experience for international customers.
Take Action Now
Adopting Shopify duties and import taxes on your store can elevate your international sales strategy, driving customer satisfaction and ensuring smoother shipping experiences across borders.