Cross-border e-commerce: logistics, IOSS/OSS, returns and last mile

Since the EU e-commerce package three regimes apply:

• IOSS: For goods up to EUR 150 from third countries. VAT collected at sale, paid centrally. No import VAT at delivery, faster clearance, no surprise bills for the buyer.
• OSS: For intra-EU B2C distance sales above the EUR 10,000 EU-wide threshold. Central VAT filing.
• Reverse charge / B2B: VAT liability shifts to the VAT-registered recipient.

Shipping from third countries (UK, US, CN, CH) without IOSS triggers carrier-issued duty/VAT invoices at delivery – with 15–30% refusal rates.

The Incoterm dictates who carries which duty:

• DAP: Merchant delivers to address, buyer handles duties/VAT. Simple, but poor conversion.
• DDP: Merchant pays duties/VAT. Best customer experience, operationally complex.

Data: DDP lifts conversion by 15–40%. Requires IOR, HS codes, origin, EORI/EIN.

Three data points are critical:

• Customs value: Transaction value incl. insurance/freight to EU border.
• HS / tariff number: 6-digit WCO, TARIC expands to 10.
• Origin: Preferential origin enables FTA reductions.

Since 1 July 2026 the EUR 150 duty exemption has been abolished; a transitional flat duty of €3 per tariff line applies until July 2028. The EU Customs Data Hub rolls out stepwise. Running IOSS properly pays off as digitalisation continues.

Returns are the biggest cost/process drag internationally. Building blocks:

• Returns pooling: Country hubs consolidate before central warehouse.
• Customs declaration: Returns from third countries need returned-goods relief / inward processing.
• Refund process: Trust refunds lift NPS but require fraud detection.
• Refurbishment: A/B/C grading, secondary channels cut write-offs.

Last mile is the most expensive and sensitive part. Key levers:

• Carrier mix: Country-/segment-specific 2–5 carriers. Local champions beat internationals on value for money.
• Parcel shops / lockers: OOH delivery reduces CO2 and re-attempts.
• Service options: Day/place/time windows boost conversion.
• Scan events: 5–7 scan events per shipment are the benchmark.

Cross-border merchants run 3–5 channels: own shop, Amazon, Zalando Connected Retail, OTTO Market, Etsy, TikTok Shop. Needs:

• Amazon MCF: Multi-channel fulfillment from Amazon network.
• Zalando Connected Retail: Ship-from-warehouse directly to Zalando customers.
• SKU master: Central PIM is key to omnichannel.
• Stock: Single-pool vs. channel-pool; single-pool optimises capital, channel-pool reduces stock-outs.