Why cheap online shopping is about to change for Irish consumers

Analysis: The era of the frictionless €5 parcel is ending to be replaced by something which will be more expensive, more transparent and regulated

By Eoin Plant-O’Toole, Edinburgh Napier University

If you regularly buy low-cost clothes, gadgets, beauty products or household items online, a small customs change could soon make a noticeable difference. From 1 July, a new €3 customs duty will apply to many e-commerce parcels valued at €150 or less coming into Ireland from outside the European Union. That includes purchases from Great Britain, China, the United States and other non-EU countries.

This is the end of what is often called “de minimis” customs relief for low-value consignments. Until now, goods worth €150 or less could enter the EU without customs duty, although VAT was still payable. Revenue says the new €3 charge will apply per item, and that it will form part of the amount used to calculate VAT. That sounds technical, but it could affect millions of ordinary online purchases.

What does it mean at checkout?

The key point is that the charge is not simply €3 per parcel. Revenue says it applies to each distinct product type in a package. For example, a parcel containing a pen, notebook and keyring would attract three €3 charges, or €9 plus VAT. Two identical pens would count as one item and attract one €3 charge.

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From RTÉ Radio 1’s Today with David McCullagh, online shoppers to face extra charges as Revenue introduces new customs duties on goods bought from outside the EU

Some websites may collect the duty at checkout, but others may not. If it is not collected when you buy, the postal operator or courier may ask for payment before delivery. That could mean unexpected costs, delays or refused deliveries.

Returns may also become more complicated. Revenue says the €3 customs duty will not be refundable if goods are returned, unless they are faulty. VAT refunds will depend on the supplier’s own arrangements. For shoppers, the practical advice is simple: check where the goods are shipped from, not just where the website appears to be based. A “.ie” domain, euro pricing or Irish-looking branding does not necessarily mean the goods are in Ireland or the EU.

Why is the EU doing this?

The change is part of a wider European response to the explosion in low-value e-commerce imports. EU finance ministers agreed to impose a €3 duty on small parcels to help tackle the flood of cheap imports from platforms such as Shein and Temu. It also reported that 4.6 billion such small packages entered the EU in 2024, more than 145 per second, with 91% originating in China.

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The Council of the EU says the current duty-free treatment of low-value parcels has created unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud and environmental concerns. The European Commission has also warned that many low-value imported goods do not comply with EU rules, raising concerns about harmful products, unfair competition and the environmental impact of mass shipping.

In other words, the issue is not only tax. It is also about product safety, consumer rights, customs enforcement and whether Irish and EU retailers are competing on a level playing field.

The challenge for shoppers and businesses

For consumers, the main downside is obvious: some cheap online goods will become more expensive. A €3 charge may not sound like much, but it matters when the item itself costs €5 or €10. It matters even more when a basket contains several different product types. Add VAT, delivery charges and possible courier administration fees, and the final cost may be less attractive than the advertised price suggests.

This could particularly affect shoppers who rely on low-cost platforms for clothes, phone accessories, craft supplies, children’s items or small household goods. There may also be confusion. Some shoppers will assume that if a website charges in euro, uses an Irish web address or delivers quickly, it must be EU-based. That will not always be true. Revenue has warned consumers to check a seller’s terms and conditions, business address and shipping location before buying.

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The change will also affect sellers, couriers, postal operators and customs brokers. Online retailers will need to decide whether to collect the charge at checkout or leave it to be collected on delivery. Marketplaces will need better product data, tariff classification and systems for handling VAT and duty. Couriers may face more customer queries, more unpaid charges and more returns.

For Irish small businesses selling internationally, customs knowledge is becoming more important, not less. This is where industry bodies can help. The Chartered Institute of Logistics and Transport Ireland describes itself as the professional body for people in Ireland’s logistics, transport and supply chain sector, including customs compliance and trade facilitation.

Are there any benefits?

There are potential benefits. Irish and EU retailers may face fairer competition if overseas platforms can no longer use duty-free low-value shipping as a price advantage. Consumers may benefit if more goods entering the EU are checked for safety and compliance. Customs authorities may get better data on what is entering the market. There may also be environmental gains if the new rules reduce the incentive to ship millions of very small parcels individually across the world.

But the benefits will depend on implementation. If the rules are clear at checkout, consumers can make informed decisions. If they are not, shoppers may face surprise charges at the door.

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What should shoppers do now?

Before buying from outside the EU, ask three questions: where is the item shipped from, is customs duty included at checkout, and what happens if I return it? The €3 charge will not end online bargain-hunting. But it will make the true cost of cheap imports more visible.

For Irish shoppers, the era of the frictionless €5 parcel is coming to an end. What replaces it may be slightly more expensive, but also more transparent, more regulated and potentially fairer for businesses that already follow EU rules.

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Prof Eoin Plant-O’Toole is Professor of Logistics and Supply Chain Management at Edinburgh Napier University and Chair of the Chartered Institute of Logistics and Transport Ireland Policy Committee.

The views expressed here are those of the author and do not represent or reflect the views of RTÉ

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