New European Union customs charges threaten to erase Christmas profits for some UK online retailers, according to Azets, the international accountancy and business advisory firm with offices in Witney and Bicester, Oxfordshire.
Azets customs and duty tax director for the UK Gordon Baird said the changes could make low-value sales unprofitable while prompting customers to refuse deliveries.
He noted that the final quarter of the year is especially important for many online businesses because Black Friday, Cyber Monday and Christmas can generate a disproportionately large share of annual revenue.
Festive trading is also closely linked to consumer expectations for rapid parcel delivery.
Baird said a significant customs change would arrive as retailers enter their busiest sales period.
The measures follow the removal in July 2026 of the EU’s duty exemption for low-value imports.
From that point, a flat €3 customs charge applies to goods entering the EU with a value of €150 or less.
An additional EU-wide handling fee of €2 will be introduced in November 2026 for every parcel, regardless of its value.
Baird explained that the €2 fee applies to each declaration line or product type, while the €3 charge applies below the €150 threshold.
Orders containing several categories of goods could therefore accumulate multiple charges.
A £65 Christmas gift box with three product categories could incur €15 in customs-related fees before local VAT, courier administration charges or duty were added.
The adviser said these costs could consume most or all of the profit generated on an individual sale.
He identified gift retailers, clothing brands, specialty food suppliers and consumer-goods businesses as particularly exposed because Christmas baskets and multi-product gift sets are common in those sectors and charges apply repeatedly to individual lines.
Many UK retailers continue to trade on a Delivered at Place basis, leaving customers responsible for import charges.
Baird said consumers may be reluctant to accept unexpected delivery costs, particularly during the Christmas shopping period.
Businesses that do not reconsider their EU sales arrangements could consequently experience more abandoned baskets, refused parcels and lost customers.
He advised online retailers to review their customs and fulfilment arrangements promptly to protect profitability and reduce the risk of unexpected costs for customers.
Azets also said it could assist e-commerce businesses in assessing the impact of the changes and identifying possible steps to address them.