UK-based Etsy sellers can now ship to U.S. customers via a new delivery service that imposes customs duties and taxes at the point of sale. The new service comes via Royal Mail’s ”Postal Delivery Duties Paid (PDDP) offering, which Etsy recently integrated directly into its platform.
This makes Etsy the first online marketplace to provide a seamless postal-based PDDP service for UK parcels bound for the U.S.
Change Offers Etsy Sellers and Buyers Relief
The new service comes in the wake of a major shift in U.S. customs policy. On 29 August 2025, the U.S. scrapped its “de minimis” rule, an exemption under which parcels valued at $800 or less could enter duty-free. The policy change means nearly all parcels entering the U.S. now attract duties.
The removal of the ‘de minimis’ exemption posed a significant challenge for UK Etsy sellers, particularly those shipping low-value items. The new PDDP service allows sellers to purchase postage for U.S.-bound packages, with customs duties and taxes pre-calculated and collected at the point of sale. This means UK Etsy sellers can now guarantee that U.S. customers receive their packages without surprise costs or tedious customs processes.
”We’re delighted that Etsy is the first marketplace to offer our new PDDP services. We’ve worked with US authorities and our international partners to make sure Etsy’s business customers can continue posting to the US with ease,” Iain Johnson, Managing Director International, at Royal Mail said.
”Etsy and Royal Mail both want to support small businesses and entrepreneurs, and this is a great way of opening up the biggest market in the world. Just in time for the festive season, this means British sellers can send their unique handmade and vintage gifts across the Atlantic with confidence.”
What Etsy Sellers Must Know
UK sellers using the new Etsy service must purchase shipping labels directly through Etsy and accept either Etsy Payments or PayPal. Duties and applicable taxes will be calculated based on the item’s declared value and charged at checkout.
Etsy sellers must pay a 50 pence handling fee per parcel to cover Royal Mail’s clearing and processing. Once paid, Etsy will ship the item under the ”Delivery Duties Paid” service, ensuring U.S. recipients incur no additional customs charges.
”We’re thrilled to partner with Royal Mail on this important new Postal Delivery Duties Paid service,” Roman Sobieri, Head of Global Shipping at Etsy, said. ”This collaboration will help UK-based Etsy sellers more smoothly and confidently reach U.S. buyers this holiday season and beyond. Innovations like this make a real difference in helping small businesses thrive globally.”
How the Change Could Reshape Transatlantic Trade on Etsy
The integration of Royal Mail’s PDDP service via Etsy could allow more small UK-based Etsy sellers to access the U.S. market, without worrying about passing on unexpected charges to customers. The integration could also encourage more cross-Atlantic purchases by improving transparency. U.S. buyers can now see what they’ll pay at checkout upfront with no extra customs paperwork required.
