Executive summary
- What: On August 24, 2026, Shopify Managed Markets stops supporting delivered duty unpaid everywhere it supports delivered duty paid. Affected markets move to DDP automatically.
- Why: Duties and import taxes are collected at checkout rather than by the carrier or customs on delivery, which removes charges that surprise customers after they have already paid.
- Who: Any merchant on Managed Markets with markets that use or inherit DDU. No action is required unless you want customers to keep paying on delivery.
What changed
Managed Markets has supported two duty models. Under DDP, duties and import taxes are calculated and charged at checkout. Under DDU, the customer is billed by the carrier or customs when the parcel arrives. From August 24, 2026, DDU is unavailable anywhere Managed Markets supports DDP.
The migration is automatic. Markets that use DDU directly and markets that inherit it both move to DDP without merchant intervention. The only way to preserve pay on delivery is to deactivate Managed Markets for that market, or for the store, before the date.
Deactivation is not a small toggle. Global-e stops acting as merchant of record, which returns tax registration and remittance to you, removes Managed Markets exclusive shipping rates, and stops duty calculation unless you configure Shopify duties and import taxes yourself. Orders placed while it was active still fulfil through Managed Markets and cannot be edited afterwards.
Why it matters
For most enterprise merchants already on Managed Markets, the correct action is no action, and the change is a net positive. Landed cost at checkout converts better because the total the customer agrees to is the total they pay. DDU moves a variable charge to the doorstep, and that cost reappears as refused deliveries, chargebacks, and support volume.
The reason to pay attention is pricing rather than plumbing. Moving a market from DDU to DDP raises the checkout total unless you absorb duties into product pricing. Merchandising should see the new totals before customers do. Treat it as part of your standing international market strategy rather than a one off configuration event.
Deactivating to preserve DDU is rarely the right trade. You would exchange a higher checkout total for the full weight of tax compliance.
Role-specific impact
- Marketers: Checkout totals in affected markets rise unless duties are absorbed into displayed pricing. Review international promotions, free shipping thresholds, and landing pages that quote prices directly.
- Developers: Confirm nothing in checkout, analytics, or ERP mapping assumes a DDU order shape. Duty and import tax lines now appear on orders from markets that previously had none, which affects revenue reporting and reconciliation.
- Store admins: Identify which markets use or inherit DDU today, brief support on the change, and update help content telling international customers to expect a bill on delivery.
Use-case example
Real-world scenario
A US based apparel brand sells into eight international markets through Managed Markets. Six are already DDP. Two smaller markets inherited DDU and account for about 4 percent of international revenue. Modelling shows the average checkout total in those two rising by roughly 12 percent once duties are collected upfront. Rather than deactivate, the team enables duty inclusive pricing for both ahead of August 24 and adjusts displayed prices so the customer facing total stays close to the previous doorstep inclusive cost. Support scripts are updated the same week. Both markets transition without the refused delivery rate the brand had been absorbing on roughly 3 percent of DDU orders.
Implementation checklist
- List every market and record whether it uses DDU directly or inherits it.
- Model the checkout total change for each affected market.
- Decide per market whether to absorb duties into pricing or pass them through at checkout.
- Update international pricing and published price points before August 24, 2026.
- Confirm order data consumers handle duty and import tax lines from the newly affected markets.
- Brief support teams and remove customer facing guidance about paying on delivery.
- If deactivation is under consideration, review the merchant of record, shipping rate, and existing order consequences first.
- Place a live test order in each affected market after August 24 and verify totals.
FAQ
Q: Do we need to do anything if our markets already use DDP?
A: No. The change only affects markets that use or inherit DDU, and markets already on DDP continue unchanged. Still, confirm your configuration rather than assuming inheritance works the way you remember.
Q: Can we keep DDU by turning off Managed Markets?
A: Technically yes, and deactivation must complete before August 24, 2026. In practice you take back merchant of record status, tax registration and remittance, and duty calculation, and you lose Managed Markets exclusive shipping rates. That is a large operational shift to preserve a duty model that converts worse.
Resources
Managed Markets in the Shopify Help Center
Need guidance? Talk to Makro.