Etsy To Require Non-US Sellers To Prepay US Tariffs, Build Duties Into Item Prices
Etsy will soon require non-US sellers to use Delivered Duty Paid (DDP) shipping and include tariff costs in item pricing.
The update was announced by Vice President of Customer Operations James Ossman in the Etsy community forum earlier today, with the new policy going into effect July 9, 2026.
Sellers who don't comply may face a range of consequences, including but not limited to losing Etsy Purchase Protections and being charged for any tariffs or collections fees incurred by buyers.
Since 2025, changes to US import tariffs have made international selling more complex. If you ship orders to US buyers, you may have already adjusted how you handle duties, pricing, and delivery to manage rising costs and buyer expectations.
We’re also seeing that when duties aren’t included in pricing upfront, buyers face unexpected fees after checkout. This can create a confusing experience, lead to delays at customs or refused deliveries, and result in additional costs, cases, or refunds.
In a recent survey, nearly two-thirds of US Etsy buyers said they’d be unlikely to make a purchase if they had to pay tariffs at the time of delivery.*
What’s changing
To help create a more consistent and reliable experience, we’re updating our Seller House Rules for orders shipped to the US.Starting July 9, you'll be expected to account for all of your costs, including duties and import fees, to US buyers upfront in your pricing by using a Delivered Duty Paid (DDP) shipping option, so they pay the full cost of their order at checkout.
Orders shipped without duties prepaid will no longer qualify for Etsy Purchase Protection. If buyers are charged tariffs or collection fees by the carrier, they’re eligible to be refunded and the charges will be deducted from the seller.
Ossman also said Etsy is rolling out new tools to help sellers make this transition, including:
- Shipping partners to help manage and ship orders all in one place, with the ability to estimate and prepay all tariffs and fees using DDP shipping options.
- Pricing tools to set different listing prices for domestic, US, and international buyers.
- A new US tariffs estimator you can use in Shop Manager when creating or editing your listings to help estimate tariffs, compare shipping options, and complete customs forms with ease.
More details can be found in the updated Seller Handbook page for tariffs.
Sellers began seeing the new tariff estimator in Shop Manager last week, but some lamented the fact that it's not yet a fully integrated solution, saying there are still significant gaps that Etsy needs to address to make the tool truly useful.
Liz Morton
And while Etsy is clearly framing these changes as being driven by a need to "meet buyer expectations", it's important to note that requiring tariff costs to be baked into item pricing also conveniently artificially inflates Gross Merchandise Sales (GMS) figures that Etsy reports on quarterly earnings.
Etsy has struggled with declining GMS in recent years, only returning to real growth in the most recent quarter.
Liz Morton
That makes the decision to force tariffs into item pricing rather than providing a separate field for those costs even more notable as year over year comparisons for this important financial metric will be muddied going forward - which could be a red flag for investors trying to understand how the marketplace is really performing under the leadership of new CEO Kruti Patel Goyal.
What do you think of Etsy requiring non-US sellers to use Delivered Duty Paid (DDP) shipping and include tariff costs in pricing for items shipped to US buyers? Let us know in the comments below!
