FedEx Launches Shopify Duty and Tax Tool
FedEx launched a Shopify app priced at $99 per month that displays duties and taxes at checkout and provides limited protection against charges exceeding the displayed amount.
What are the key facts?
- 1FedEx launched the FedEx Duty and Tax tool
- 2The tool is offered as a Shopify app
- 3The tool costs $99 per month
- 4The tool displays duties and taxes at checkout
- 5FedEx covers charges exceeding the displayed amount
What happened?
FedEx launched the FedEx Duty and Tax tool on September 11, 2026, offering it to merchants as a Shopify app priced at $99 per month. Merchants can display estimated duties and taxes to consumers at checkout, helping them understand the total order cost in advance. If the final duties and taxes exceed the amount displayed at checkout, FedEx will cover the excess; if the actual charges are lower than the estimate, merchants will not receive a refund for the difference. The tool is part of the FedEx Global Trade Navigator system, which also includes HS code lookup, duty and tax estimation, country-of-origin and customs-value management, and API access to compliance requirements. A survey cited by FedEx found that some small and midsize businesses encounter situations in which consumers discover additional duties, taxes or fees only upon delivery. The tool is mainly aimed at direct-to-consumer websites, Shopify cross-border merchants and sellers using DDP or landed-cost displays, but the monthly and service fees must be included in gross-margin calculations.
What does this mean for cross-border sellers?
FedEx Duty and Tax can display duties and taxes at Shopify checkout and cover the portion by which actual charges exceed the displayed amount, helping reduce surprise costs at delivery. Sellers should include the $99 monthly fee and service charges in gross-margin calculations; low-average-order-value or low-volume stores may not be suitable for immediate adoption.
What should sellers do now?
- 1For stores using Shopify, direct-to-consumer websites or DDP shipping, organize current duty, tax and freight display methods by key products and destinations, create a pre-launch cost sheet, and separately identify the impact of the $99 monthly fee.Finance
- 2Use recent Shopify order data to calculate per-order gross margin after enabling the tool, recording estimated taxes, actual charges, service fees and the $99 monthly fee; produce a list of stores and categories for trial or non-adoption.
- 3For Shopify stores preparing to display landed costs, select a group of cross-border products and verify HS codes, country of origin, customs value and tax displays at checkout; complete a pre-launch field checklist.