International growth doesn’t have to be complicated. Huboo’s UK and EU fulfilment network gives you a fast, cost-effective route to reach new customers across the United States.
The United States is the world’s largest eCommerce market, worth over $1.1 trillion in 2024 and home to more than 270 million online shoppers.
For UK and EU brands, selling to American consumers represents a huge growth opportunity, and you don’t need to build a U.S. operation to get started.
⇒ The U.S. e-commerce market is expected to reach $1.7 trillion by 2029
⇒ Cross-border shopping is growing 20% year on year, driven by demand for international brands
⇒ 65% of U.S. consumers have purchased from a foreign online retailer in the past year
Entering this highly attractive market comes with significant challenges:
⇒ The country size complicates logistics decisions, for instance, choosing the optimal location(s) for distribution
⇒ State-specific regulations add legal complexity
⇒ A very competitive market
⇒ Marketing and advertising costs in the U.S. are often higher than in other regions
⇒ And recently, U.S. customs changes that affected shipments from the UK and EU to the United States
Entering a new market doesn’t have to mean going through complex new setup procedures.
Huboo helps brands test and scale into the U.S. quickly and efficiently by managing fulfilment and international shipping from our UK and EU hubs.
⇒ Dispatch from your existing Huboo warehouse to U.S. consumers
⇒ Test product demand and pricing before investing in U.S. stock
⇒ Maintain full control through our real-time dashboard for orders, stock, and billing
We want to explain the recent U.S. customs changes that affected shipments from the UK and EU to the United States, and how Huboo can support your U.S. expansion.
The U.S. government has removed the de minimis exemption that previously allowed most shipments under $800 USD to enter duty-free.
This means all goods imported into the U.S. are now subject to duties, taxes, and customs clearance fees — regardless of value.
The previous DDU services that all of our clients were utilising when shipping orders to the U.S., where customers were responsible for paying these fees upon entrance into the country, are no longer allowed and have therefore been suspended by all carriers. This means that all duties, taxes and clearance fees must be paid before leaving the country via DDP services.
Reach U.S. customers effortlessly with our all-in-one fulfilment and U.S. shipping solution.
1. Carrier Invoices Huboo – When your U.S. shipment arrives, the carrier processes the import through U.S. Customs and pays any duties, taxes, and clearance fees on your behalf. They then invoice Huboo for these costs.
2. Huboo Invoices You – Once we receive the carrier’s invoice, we pass on these exact charges to you, along with any applicable administrative fees.
3. You Decide How to Handle Costs – You can choose whether to recover these charges from your customer at checkout (via DDP collection plug-ins available on shopping channels), build them into your product pricing, or absorb them yourself as part of your business costs.
To minimise delays and costs, we recommend adopting a DDP model so duties and taxes are prepaid at checkout. Many eCommerce platforms and carriers offer solutions to calculate and collect these charges upfront. You can see these listed below on popular shopping channels.
If you have decided not to absorb the new charges, you must change your pricing model and checkout so your customers pay the taxes in advance. The main tools to support these definitions are:
⇒ A landed cost calculator to help with pricing decisions and customer communication.
⇒ A DDP service plug-in on your shopping channel, so duties/taxes are prepaid at checkout, avoiding delays and refusals.
⇒ What it does: Estimates total import costs before purchase.
⇒ How it works:
– You provide information about the products you sell.
– It outputs estimated duties, taxes, and fees.
⇒ Purpose:
– Helps sellers plan pricing.
– Helps buyers understand the likely total cost.
⇒ Limitation: It is an estimate. Actual duties may differ if classification or declared values change.
⇒ Example: Before listing a cotton shirt, you check a landed cost calculator. It shows that a $25 extra cost. You then factor this into your pricing.
⇒ What it does: Collects duties, taxes, and fees at the checkout stage.
⇒ How it works:
– Integrated into an e-commerce platform (Shopify, Magento, WooCommerce, etc.).
– Customer sees the full cost (product + shipping + duties/taxes).
– You or your logistics partner use those funds to pay U.S. Customs on arrival.
⇒ Purpose:
– Ensures transparency for the customer.
– Reduces delays since couriers are not chasing customers for payment.
⇒ Limitation: Requires proper integration and accurate product data. Errors in classification can result in over or under-collection.
⇒ Example: A buyer in New York orders a cotton shirt from your store. At checkout, the DDP plug-in calculates the duty and adds it to the order total. The customer pays everything upfront, and the package arrives without additional charges.
| Feature | Landed Cost Calculator | DDP Plug-in |
| Timing | Pre-sale estimate | At checkout |
| Who uses it | Seller (internal use) | Buyer (pays at checkout) |
| Accuracy | Approximate | Binding (collected and remitted) |
| Customer experience | Possible surprise fees | No surprise fees |
| Purpose | Planning and pricing | Automated compliance and collection |
⇒ There are carrier restrictions for some product categories. Contact us to learn more.
⇒ Customs charges are set by U.S. Customs and Border Protection (CBP) and vary depending on the commodity type, value, and origin.
⇒ Huboo will pass on to you exactly what we are billed by carriers and customs, plus any applicable administrative fees.
⇒ Charges will appear as a separate line item on your invoice and must be paid under our agreed payment terms.
⇒ You remain responsible for these charges even if your customer refuses delivery.
⇒ You must collect U.S. duties and taxes from your customers at checkout (Delivered Duty Paid – DDP) or assume responsibility for these charges yourself. If duties and taxes are not collected in advance, your customers may experience delivery delays or refuse to accept the shipment, which can result in additional return and handling fees.
⇒ From 01/09/25, all clients shipping to the U.S. through Huboo need to formally opt in to this updated service model.
⇒ You can read our U.S. Shipping & Customs Policy here.
