Every Shopify merchant who ships internationally through Managed Markets and lets customers pay customs duties on delivery is about to lose that option. On August 24, 2026, Shopify Managed Markets will stop supporting Delivered Duty Unpaid (DDU) in every country and region where it supports Delivered Duty Paid (DDP).
Markets that currently use or inherit DDU will automatically move to DDP, meaning customers in those markets will pay duties and taxes at checkout, not to the carrier or customs on delivery. The switch is automatic. Merchants who do nothing will be migrated.
What DDU and DDP actually mean for your store
Under DDU, the buyer places an order, the package ships, and then a courier shows up asking for an extra payment to cover import duties and taxes before handing over the parcel. It is a known conversion killer. Surprise courier fees at delivery are a top reason for refused parcels.
Under DDP, those costs get folded into the checkout total. The buyer sees one price, pays once, and receives the package without further charges. Collecting duties and taxes at checkout helps avoid surprise costs on delivery and makes international shopping more predictable.
The tradeoff is visibility. It raises your displayed checkout total in every affected market, and that is a conversion change you should measure rather than assume. A $40 product going to Germany might now show $48 at checkout. That transparency is better for customers but could look like a price hike if you don’t explain it.
What to do before August 24
If you want your customers to keep paying on delivery, turn off Shopify Managed Markets before August 24, 2026. That is a market-by-market decision in your Shopify admin under Settings, then Markets. Turning off Managed Markets means you also lose its built-in HS code classification, duty calculations, and discounted international shipping labels.
For merchants who are staying on Managed Markets, the practical checklist is short. Make sure your products have accurate Harmonized System (HS) codes and country-of-origin data so duty estimates are correct. Review your international pricing to confirm the all-in totals still make sense competitively. Update any customer-facing FAQs or shipping pages to explain that the price at checkout already includes duties.
Model the checkout price change on your top international markets before the 24th rather than discovering it in conversion data. This change is part of a broader pattern from Shopify, which has spent the last several months rolling out duties-inclusive pricing, EU flat-duty support, and Managed Markets expansion to Canada and the UK. The platform is steadily moving the entire landed cost to the point of sale, and merchants who sell across borders will need to keep pace.
