The European Union’s new customs rules rolled out on 1 July with a €3 fee per item. Abi Bennett from Starshipit explains what it means and what to do about it.
The European Union’s new customs rules apply a €3 charge for every individual product imported into the region. On its surface it sounds like a minor administrative fee.
In practice, because it can apply per item or per line item rather than per parcel, the costs compound quickly. A customer ordering five items from an Australian retailer could face €15 in customs fees before the parcel even arrives.
How it hits Australian retailers
Abi Bennett, Chief Operating Officer at Starshipit, an Australasian shipping platform that works with Australian brands including Culture Kings, Princess Polly and LSKD, said the rule has caught legitimate retailers in a rule designed for someone else. “While the European Union’s new customs changes are explicitly designed to curb ultra-low-cost global marketplaces, Australian retailers exporting directly to European consumers are caught in the crossfire,” she said.
The timing could not be worse. Australian retailers are already dealing with tighter margins and increased shipping complexity driven by rising international fuel prices, tariff volatility, stricter customs requirements and increases to fulfilment costs. A €3 charge per item on top of that is not insignificant.
Bennett put it plainly. “A €3 charge sounds small on its own, but because it can apply per item or line item rather than simply per parcel, the costs can compound quickly. For small and medium-sized e-commerce brands, they simply do not possess the financial or operational wiggle room required to absorb that kind of additional customs overhead,” she said.
The customer experience problem
The real danger is not the fee itself but how it hits customers at checkout and at the border. When customers discover unexpected costs after they have already paid for an order, trust evaporates. They feel burned and they do not come back.
Bennett said the biggest risk is silence. “The biggest threat here is what happens to the checkout and delivery experience. When checkout messaging and costs are unclear, it can lead to border clearance delays, surprise fees for shoppers, and costly refused parcels. And once a customer feels burned by hidden costs or frustrated by a slow delivery, trust is lost, and they simply won’t buy from you again,” she said.
What retailers need to do now
The retailers best positioned to manage this change are those being transparent with customers from the moment they click buy. That means being clear about what duties or fees may be payable on arrival. If retailers want to offer a duties-paid experience, they need to confirm their carrier, account and service can support that workflow for the relevant destination.
Bennett’s advice to Australian retailers is concrete. “Retailers need to look closely at their courier options and check exactly how each service handles overseas duties, taxes and fees. The biggest risk is saying nothing at checkout and letting the customer discover extra costs only once the parcel reaches the border,” she said. “If duties or fees may be payable on arrival, retailers need to make that clear before purchase.”
For those wanting to absorb the cost and offer a seamless experience, the requirement is clean data, flexible carrier strategies and automated fulfilment systems that can handle customs documentation and tracking notifications as rules shift.
Bennett said the retailers riding out this transition most successfully will be those with strong foundations. “The retailers best positioned to ride out this transition are those operating with clean data foundations, flexible carrier strategies, and transparent customer communications. Managing these shifts requires an automated and flexible fulfilment platform that seamlessly organises carrier selection, shipping rules, customs documentation, and proactive tracking notifications as global requirements evolve,” she said.
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