Navigating Holiday Shipping Challenges: How Retailers Can Thrive Amid Tariffs, Trade Shifts, and Sky-High Expectations

The 2025 holiday season is already shaping up to be one of the most complex shipping environments in recent memory for retailers. Businesses are facing shifting global trade policies, rising shipping costs, and heightened consumer expectations, causing an increasingly narrow path to deliver products profitably, punctually, and without friction.

Among the most disruptive changes is the recent suspension of the de minimis exemption for international shipments entering the U.S. This policy shift means that as of August 29, all goods entering the country (regardless of value) are now subject to duties and taxes. Previously, imports valued below $800 were not charged. For retailers and ecommerce brands accustomed to shipping low-cost items duty-free, this development could increase costs and slow down delivery timelines if additional fees are now required. Unexpected changes to duties and tariffs can lead to unaccounted charges for customers, potentially resulting in returned packages, retention problems, and dissatisfied buyers.

These complications are landing at a time when consumer expectations remain high, especially for Gen Z and millennial shoppers who want fast delivery, transparent pricing, and seamless cross-border deliveries and returns as standard practices. Our research shows that 57% of consumers expect orders to arrive within two days, but only 35% of retailers globally meet this demand.

In this environment, simply absorbing higher logistics costs shouldn’t be the only strategy. Retailers must become more proactive and agile, and implement solutions to better approach cross-border shipping.

What are the best ways that businesses can adapt?

Prioritize Delivered Duty Paid (DDP) Options to Reduce Surprise Fees

When consumers are surprised by unexpected customs charges, they may abandon carts or reject deliveries. Merchants should consider leveraging shipping options that allow duties and taxes to be paid upfront—a DDP model. This not only improves price transparency at checkout but ensures a smoother delivery experience with fewer returns and no buyer frustration.

The alternative DDU (Delivery Duty Unpaid) option applies to when a recipient has to pay the customs duties on the item upon delivery. DDP (Delivery Duty Paid) options are only available for some carriers and services, so make sure to review which services are available before shipping. It’s also important to confirm the shipment’s correct product details, weight, and dimensions to avoid duty and tax adjustments due to inaccurate measurements. Bonus points if the system can automatically detect the appropriate Harmonized System (HS) codes and destination-specific thresholds based on the contents of the order.

Automate Customs Documentation and Compliance

Manually keeping up with international shipping requirements is both risky and resource-intensive as tariffs and taxes prove unpredictable. Instead, retailers should adopt automation tools through platforms that create customs forms, dynamically calculate duties and taxes, and ensure accurate product classification.

Automating these processes doesn’t just reduce errors and compliance risks. It also accelerates fulfillment and improves the likelihood of on-time delivery. For businesses scaling up for peak season, this efficiency gain is essential.

Build Flexibility into Carrier and Fulfillment Strategies

Typically, no single carrier can be all things to all shippers so it’s important to have backup plans in place. That’s especially true in 2025, as rate changes, service slowdowns, and regional disruptions are inevitable. To keep costs low and SLAs high, retailers should diversify their carrier mix and implement tools that enable rate shopping based on real-time performance and cost.

Using a multi-carrier strategy also allows merchants to shift volume quickly when disruptions, such as geopolitical or weather events, impact a specific region or carrier. By adopting shipping software that integrates with a broad range of providers, businesses gain resiliency without having to build new workflows from scratch.

Adapt Your Fulfillment Network to Shorten the Last Mile

Fast, affordable delivery begins with proximity. Retailers looking to meet next-day expectations without paying express rates should evaluate whether their fulfillment footprint aligns with customer demand. This might mean partnering with 3PLs that offer regional distribution or transforming select retail locations into micro-fulfillment hubs.

The goal is simple: get inventory closer to the consumer. Doing so reduces delivery times, lowers shipping costs, and provides the flexibility to offer options like local pickup or same-day courier service where demand supports it.

Use Shipping to Support the Entire Customer Journey

The shipping experience doesn’t stop at checkout. With return rates spiking after the holiday season, retailers should invest in return workflows that are just as seamless as the delivery process. That includes pre-generating return labels, providing flexible return options (like return-to-store or drop-off lockers), and keeping customers informed every step of the way.

Returns also provide an opportunity to build trust. According to our research, 69% of consumers would switch brands for more convenient delivery or return options. By clearly communicating return policies, extending return windows through January, and ensuring that return logistics are simple, retailers can turn potential disappointments into future loyalty.

Prepare Your Customer Service Teams for Shipping Disruptions

Every delivery delay or customs holdup becomes a potential customer service ticket. In peak season, that volume can overwhelm support teams. Mitigate the impact by proactively communicating shipping cutoffs, including tracking visibility in post-purchase flows, and training agents on the nuances of global shipping issues, like de minimis thresholds or DDU vs. DDP scenarios.

When service teams are prepared and customers are kept in the loop, even frustrating delivery experiences can feel like part of a professional, well-managed process.

Monitor Tariff and Trade Changes in Real Time

Policy shifts can upend a pricing or fulfillment strategy overnight. Retailers should monitor government advisories, customs regulations, and trade news regularly. It’s also wise to lean on shipping technology partners who update rule sets and calculators in real time to reflect new tariffs, de minimis changes, and carrier restrictions. 

In today’s trade environment, information is a competitive advantage. Retailers that stay informed can move faster, update pricing preemptively, and avoid surprise penalties.

Closing Thought 

This holiday season, shipping and trade complexity may be unavoidable, but lost profits and unhappy customers don’t have to be. Retailers that invest in the right infrastructure, automation tools, and partnerships can turn cross-border chaos into a competitive advantage. The best gifts businesses give this year might not be what’s in the box, but the seamless experience that gets it there.

Written by Albert Ko.