Third month after the Japan site launched: 37 orders, 11 stuck at Narita. The client sells knitwear and assumed anything under JPY 10,000 clears tax-free, but Japan Customs lists knitted apparel, leather bags and leather footwear as not covered by the exemption. Return shipping ran NT$620 a unit, plus a reship. That month the Japan line went negative. The carrier did nothing wrong; the checkout page had never calculated tax.
Fits vs Doesn't Fit
| Do it now | Hold off |
|---|---|
| AOV above NT$1,500, gross margin 40%+ | AOV under NT$800 |
| You already have overseas organic traffic | Still at "launch and see if anyone buys" |
| Under 300 SKUs, simple origins | Perishables, liquids, lithium batteries, supplements |
| You can commit 6–9 months and one dedicated operator | No budget for multilingual support or return freight |
Alternatives
| Route | Upside | Downside | Cost |
|---|---|---|---|
| Shopify Markets | Multi-currency, duty estimation, DDP labels ready | Duty calculation costs 0.85% or 1.5%; checkout hard to customise | Monthly fee + cut |
| WooCommerce plugins | Cheap to start | Plugin conflicts, retest on major releases | NT$150k–300k |
| Custom Laravel build | Full control of FX, tax rules, carrier routing | Priciest and slowest, needs maintenance | From NT$380k, 8–14 weeks |
| Amazon / Rakuten | Traffic already there | High commission, no customer list | 8–15% given away |
The Process
- Compliance audit (2–3 weeks): Deliverables are the target-country list, HS code mapping and tax obligation matrix. EU IOSS applies to consignments with an intrinsic value up to EUR 150. Tools: Avalara, TaxJar, the EU TARIC tariff database.
- Pricing and payments (2 weeks): Deliverables are a per-country price list and a landed-cost model. Multi-currency is local psychological pricing, not FX division; DDP or DAP is settled at this stage. Tools: Stripe, ECPay.
- Build (8–12 weeks): Deliverables are the checkout flow, the i18n string library and carrier integration docs. Store money as minor-unit integers and lock an FX snapshot per order. Tools: Laravel, Chunghwa Post International ePacket, T-cat International, 4PX.
- Pilot (4 weeks): Deliverable is the pilot report. One country, capped at 100 orders, customs rejection rate and delivery days logged per order. Tool: Metabase.
Real Costs
| Item | Amount | Notes |
|---|---|---|
| Site build | From NT$380,000 | Excludes payment and tax-agent fees |
| Overseas cards | ECPay 3.5%–3.8%, contracted only | NT$5,000 setup + NT$13,000/year |
| FX + cross-border surcharge | Roughly 2–3% (estimate) | Stripe adds these separately |
| Refund fee | Usually not returned | At 8% returns, another 0.3% of revenue |
| IOSS intermediary | NT$20k–60k per country/year (estimate) | Required for non-EU sellers |
| Return freight | NT$400–900 per unit | Most often forgotten |
| Translation upkeep | NT$30k–80k per language/year | Recurring, not one-off |
| Chargeback fee | USD 15–25 per case (estimate) | Lose the case, lose the goods too |
| PID data prep | 8–16 hours per 100 SKUs (estimate) | Mandatory in the EU from 1 Nov 2026 |
Translation is not a one-off: every product-page revision adds another NT$3,000–8,000 per language (estimate). PID means holding three codes for every SKU — your item number, the factory's, and an EAN/GTIN.
Reality vs Expectation
- Expectation: a language switcher makes you cross-border. Reality: the time goes into HS codes, tax registration and returns.
- Expectation: let the customer pay the duty. Reality: DAP means being chased at the door; refusals and complaints both rise.
- Expectation: launch and sell worldwide. Reality: year one usually means one country done well.
Common Traps
- Porting Taiwan invoice logic overseas: there is no Taiwan tax ID abroad. Store the buyer's VAT/GST number instead.
- DDP/DAP is not a shipping option, it is who pays the duty: put it on the product page and in the terms, and show estimated tax at checkout.
- Japan does not apply the JPY 10,000 exemption to knitted apparel, leather bags or leather footwear: filter those by HS code before dispatch and ship DDP.
- Assuming low-value parcels are duty-free: from July 2026 the EU drops the EUR 150 relief and charges a flat EUR 3 per item (Avalara summary). Raise the minimum order value on cheap SKUs.
- Vague descriptions like "accessories" get flagged: make name, material and origin required fields in the admin.
- Multi-currency rounding drift in reconciliation: use minor-unit integers plus an FX snapshot, and round tax only at the final step.
- One payment provider only: overseas decline rates are high. Keep a backup and rehearse the switch quarterly.
Metrics and 90-Day Roadmap
- Day 30: Compliance audit done, target country locked, IOSS filed. Metric: 100% of SKUs carry an HS code and an origin.
- Day 60: Multi-currency checkout and duty estimation live, 100-order capped pilot. Metrics: customs rejection rate <2%, checkout completion >45%.
- Day 90: Return path proven, second country evaluated. Metrics: returns closed within 7 days, payment cost per order <6%, that country's margin back in the black.
- Standing weekly review: delivery days, return rate, share of support tickets that are tax or duty related.
Decision Checklist
- ☐ Have you picked exactly one target country?
- ☐ Does every SKU have an HS code and origin?
- ☐ Checked prohibited and non-exempt goods?
- ☐ Chosen DDP or DAP?
- ☐ Decided on an IOSS intermediary for the EU?
- ☐ Reviewed US state thresholds?
- ☐ Overseas card channel decline-tested?
- ☐ Is there a backup payment provider?
- ☐ Are refund and return freight in your margin model?
- ☐ Do orders store an FX snapshot?
- ☐ Is translation upkeep in the annual budget?
FAQ
Do we have to build custom? Can't we use Shopify?
You can, and most brands should start there. The trigger isn't technical: it's stable volume, ERP integration, or commission exceeding the amortised build cost. Under roughly 3,000 overseas orders a year, Shopify Markets is usually better value.
Is IOSS registration mandatory?
No, but without it VAT is collected from the customer at import, they get chased for money at the door, and refusal rates get ugly. Sellers established outside the EU generally need an intermediary.
No US entity — does sales tax still apply?
Yes. Since 2018 most states use economic nexus: hit that state's annual revenue or transaction-count threshold and you must file. Thresholds differ by state, so run a risk assessment with Avalara or TaxJar first.
DDP or DAP — which should we pick?
If AOV is above NT$1,500 and you are targeting Japan or the EU, pick DDP: tax is collected once at checkout and refusal rates drop noticeably. DAP only suits low-price markets where customers are used to clearing parcels themselves. Before switching, ask your carrier to quote the DDP advance-payment fee — usually NT$100–200 per parcel (estimate).
Next Step
If Taiwan orders are steady and you want Japan or the EU as a second engine, start with a compliance and cost audit: tax obligations, real payment costs and carrier routes on one sheet, then decide whether to build. Cross-border ecommerce site builds start at NT$380,000 (excluding payment fees and tax-agent annual fees).
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