Cross-border e-commerce has hit a regulatory wall that’s driving up costs and catching retailers unprepared. The study of 15.6 million international shipments worth $421 million has revealed that nearly three-quarters (73 per cent) of product categories now fall into tariff-sensitive classifications, with customs authorities around the world significantly ramping up enforcement.
A new ePost Global report warns that cross-border e-commerce is facing rising regulatory challenges, with apparel and textiles (39.2 per cent of shipment value) hit hardest by complex origin checks and Free Trade Agreement (FTA) compliance requirements.
Of 15.6 million shipments analyzed, 73 per cent fall under tariff-sensitive categories.
Findings from ePost’s 2025 Shipping Optimisation Analysis Report expose a hidden crisis brewing in global retail supply chains, with 42 per cent of shipment value now tied to high-complexity customs categories that face intense scrutiny—such as electronics, luxury goods, and food items.
“Retailers are sailing into a perfect storm of regulatory changes,” said Kelly Martinez, founder and co-president of ePost Global. “The cross-border boom that fuelled e-commerce growth is now confronting a wall of protectionist policies, with customs authorities converting what used to be routine shipments into complex compliance challenges.”
“The rules of global commerce are being rewritten in real time,” said Martinez. “Brands that thrived in the era of simplified cross-border shipping now find themselves facing a maze of regulatory hurdles that can demolish profit margins overnight if they’re unprepared.”
The data reveals key strategic advantages for retailers who adapt to the evolving regulatory landscape. Notably, 97 per cent of all shipments still qualify under the EU’s €150 (~$170.31) de minimis threshold, presenting a significant opportunity for cost-effective cross-border sales. Additionally, with over 52 per cent of product categories averaging under $20 in value, there is untapped potential for consolidation strategies. By adopting value-based shipping models, retailers can better navigate tariff challenges—an increasingly important tactic as recent policy shifts close loopholes that once allowed low-value packages to enter duty-free.
ePost’s analysis further shows that retailers who systematically address four critical documentation elements—product descriptions, HS codes, declared values, and country of origin—can gain significant advantages in speed-to-customer and cost efficiency.
“What used to be back-office paperwork decisions have become make-or-break factors for international retail strategy,” Martinez warned. “A single misclassified shipment or incomplete customs form can trigger cascading delays, fines, and customer disappointment that damages brand reputation.”
Furthermore, Alison Layfield, director of product development at ePost Global, cautions that “defaulting on HS codes is no longer safe – your product could end up with a 25 per cent tariff. Customs is now requiring accurate classifications, which equates to clear descriptions, correct HS codes, declared value and actual country of origin based on the manufacturer.”
Fibre2Fashion News Desk (RR)