Expanding your online store internationally is a major milestone, but it comes with new complexities — especially when it comes to tariffs and international shipping. As a Shopify merchant, understanding customs duties and making informed logistics decisions is critical for maintaining healthy profit margins and delivering exceptional customer service. In this guide, we’ll help you navigate the nuances of tariffs so your business can go global with confidence.
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What Are Tariffs and Why Do They Matter?
Tariffs are taxes imposed by a government on goods imported into a country. When selling internationally, your products may be subject to these fees depending on the destination country and the category your items fall under. These additional costs impact how competitively you can price your products and whether customers choose to complete their purchases.
Failure to account for these fees can result in:
- Unexpected costs for your customers at the point of delivery
- Returned shipments due to non-payment of fees
- Negative customer reviews or decreased brand trust
Understanding and anticipating tariffs is not just about compliance — it’s about creating a seamless shopping experience.
Shopify’s Tools to Simplify International Trade
Shopify provides an increasingly robust suite of features to streamline global sales. Here are some of the tools you should make the most of when planning international shipments:
1. Shopify Markets
This feature allows you to tailor your storefront by region, ensuring accurate currency conversion, local language, and — importantly — appropriate duties and import tax settings.
2. Duties and Import Taxes Calculation
With supported plans, Shopify lets you collect duties and import taxes at checkout. This gives customers a clear and upfront cost, avoiding surprises when their package arrives.
3. Third-Party Logistics (3PL) Integration
Many 3PL services integrated with Shopify offer expertise in customs documentation, HS-code classification, and fulfillment strategies that meet individual country regulations.
HS Codes and Product Classification
Harmonized System (HS) codes are international terms for classifying traded products. Assigning the correct HS code is critical for determining the right tariff rate.
Common mistakes in HS classification include:
- Guessing the category based on product name
- Using outdated codes in changing categories
- Failing to double-check rules based on material or function
Use resources like the Harmonized Tariff Schedule or consult a customs broker to ensure accuracy.
How to Display Shipping and Tariff Information to Your Customers
Transparency is key in earning customer trust, especially when international fees may apply. Shopify allows you to show delivered duty paid (DDP) pricing so the cost is clear upfront.
Consider adding a FAQ or banner section on international orders that explains:
- Which countries you ship to
- What duties and taxes may apply
- Whether fees are included at checkout or paid on delivery
Best Practices for Smooth International Fulfillment
Once you’re equipped with the right knowledge and tools, implement these practical steps to reduce surprises and improve customer satisfaction:
- Use Correct Documentation: Always include commercial invoices and HS codes to prevent border delays.
- Automate Where Possible: Leverage Shopify apps or your 3PL’s tools to auto-calculate taxes and generate necessary shipping documents.
- Test Shipments: Try sending a test order to your major target countries and track timeline and fees.
Conclusion: Confidence Through Clarity
Expanding beyond your domestic market can be one of the most rewarding steps for your Shopify store, but it demands attention to detail — especially when tariffs and customs are involved. By using Shopify’s built-in international tools, classifying your products correctly, and informing your customers transparently, you lay the groundwork for a seamless and profitable global operation.
Start exploring Shopify Markets today, and let your business cross borders with ease.