Last updated: October 2026

If you’re a US, UK or other non-EU brand selling into Europe, these options usually don’t compete directly. They handle different parts of the supply chain, although some providers combine several of these services. Direct parcel shipping, by post or express courier, sends each order on its own from your home country to the European customer. A freight forwarder organises moving your stock into Europe in bulk, on pallets or in containers, and can arrange customs clearance. A 3PL (third-party logistics provider) stores that stock inside Europe and picks, packs and ships each order. So the real question is which model you’re running, not which company to hire. If you’re testing Europe with modest volumes, shipping parcels from home is often enough. Once demand is steady, a common next step is to use a forwarder to bring stock into Europe and a 3PL to fulfil orders from there. This guide covers each option, what it changes for customs and VAT, and how to decide.

What each one actually does

Direct parcel shipping: postal or express

You keep all your stock at home. Each order leaves as its own parcel and goes through import customs on arrival in the EU. Setting this up is simple and you don’t need to commit stock to Europe.

Postal services are usually cheaper and slower. Express couriers are generally faster, but they may charge higher transport, brokerage, disbursement or customs-processing fees. With either service, every order is its own customs event, and returns can be awkward and expensive to bring back.

Freight forwarder: moves your stock into Europe

A freight forwarder organises the international movement of goods in bulk. It books cargo space, coordinates carriers and documentation, and can arrange customs clearance through its own team or a customs broker. It does not automatically become your importer of record, so that role needs to be agreed before the goods move.

The forwarder’s core role usually ends once the cleared shipment reaches the agreed warehouse. Some forwarders also offer storage, distribution or fulfilment, so check exactly what’s included rather than relying on the provider’s label.

3PL: stores, packs and ships inside Europe

A 3PL takes over once your stock is in Europe. It receives and stores the goods, picks and packs individual orders, and ships them through parcel carriers. Depending on the agreed scope, it may also process returns, coordinate inbound freight, and provide services such as labelling or kitting. Ordinary deliveries from EU stock to customers in the EU don’t need new import clearance.

Where brands get this wrong

Three mix-ups come up again and again:

• Expecting a forwarder to fulfil orders. The pallet arrives in Rotterdam and nobody is set up to ship it to 400 individual customers. Some forwarders can do this, but you need to agree it upfront.
• Assuming the 3PL handles inbound customs. Some do and some don’t. Before you sign, ask whether they coordinate inbound freight or expect you to bring your own forwarder.
• Thinking parcel shipping avoids customs. It doesn’t. Every parcel from outside the EU is an import, and since 1 July 2026 low-value parcels are no longer duty-free.

What changes for customs and VAT under each model

Customs and VAT treatment depends on your goods, their origin and destination, who acts as importer, and your sales model. Treat this section as an overview, not advice for your specific setup.

Shipping each order from home (postal or express):

• IOSS. For eligible non-excisable consignments worth no more than €150, import VAT can be collected at checkout through IOSS (the Import One-Stop Shop). Many non-EU sellers have to use an EU-established IOSS intermediary to do this. When a valid IOSS number is included in the customs declaration, the customer shouldn’t be charged the same import VAT again on delivery. Official EU guidance on IOSS
• The temporary €3 duty. Since 1 July 2026, the EU has applied a temporary €3 customs duty to low-value consignments with an intrinsic value of up to €150. The charge is calculated for each declared goods category in the consignment, based on customs classification, not for every physical unit. Five identical T-shirts classified under the same tariff category would normally attract one €3 charge. T-shirts plus a watch would normally fall into two categories and attract €6. The temporary regime is scheduled to apply until 1 July 2028, when normal tariff treatment is expected to take over, subject to any later changes. European Commission on the €3 duty
• Above €150. IOSS doesn’t apply and normal customs treatment applies instead. Import VAT must be accounted for. The customs duty rate depends on factors such as the product’s classification, customs value and origin, and it can sometimes be zero.
• DDP or DAP. You also need to decide who is responsible for import clearance and charges. Under DAP (Delivered At Place), the customer is normally responsible for import clearance, duty and import VAT. Under DDP (Delivered Duty Paid), the seller takes responsibility for import clearance and import charges, which may need extra customs, tax and carrier arrangements. Our DDP vs DAP guide explains why this choice matters so much for conversions.

Importing stock in bulk (forwarder plus 3PL):

• Duty and import VAT. Customs duty is calculated under the normal tariff rules, based on factors including classification, customs value and origin. Import VAT must also be accounted for, either at import or through an available postponement mechanism. It’s generally recoverable only when the importer has the right VAT setup and import documentation, and uses the goods for taxable business activities.
• Importer and representation. The customs setup needs an EORI number (the EU’s customs ID for businesses), a clearly identified importer, and an agreed customs-representation model. A non-EU business importing in its own name will normally need an EU-established indirect customs representative. Depending on the country and VAT setup, it may also need a fiscal representative.
• Local VAT and OSS. Holding stock in an EU country will normally require a VAT registration there. Sales to customers in that same country are reported on the local VAT return. Eligible B2C sales from that stock to consumers in other EU countries can generally be reported through the Union OSS, at the VAT rate of the customer’s country. Our VAT & fiscal representation team can explain how this would apply to your setup.

There’s more admin upfront with bulk import, but much less friction on each order after that.

Side-by-side comparison

Model	Direct parcels (postal / express)	Freight forwarder	European 3PL
What it does	Ships each order from your country	Moves bulk stock into Europe	Stores and fulfils orders inside Europe
Best for	Testing Europe, low or unpredictable volume	Getting stock into Europe	Steady European demand
Delivery speed to customer	Postal is often slower; express is generally faster. Depends on route and service	Not applicable (not consumer delivery)	Often one to three working days in core or nearby markets; longer for remote destinations and some cross-border routes
Customs	On every parcel	Arranged per bulk shipment	No new import clearance for ordinary deliveries from EU stock within the EU
Inventory risk	Low	Not inherent to the forwarder; depends on how much stock you import	Higher: stock sits in Europe
Returns	Hard and costly	Not usually handled	Can be handled locally if included in the service scope
Main cost drivers	Per-parcel postage, duty, VAT and carrier fees	Freight and clearance per shipment	Receiving, storage, pick and pack, packaging, outbound delivery, returns and minimum charges

Delivery times are typical ranges, not guarantees.

An illustrative example

Here’s a hypothetical case. A US skincare brand starts selling into Germany, France and the Netherlands. In year one, orders are small and irregular, so it ships everything from the US by express courier. It uses IOSS through the appropriate registration or intermediary arrangement, and it chooses a seller-paid delivery setup designed to prevent unexpected import charges. Before describing the service as DDP, the brand confirms who acts as importer and how the courier handles the temporary customs duty. That is the right approach for this stage.

By year two, demand is steady and five products make up most European orders. Delivery times start to show up in reviews, and the €3 duty adds up on orders that span several goods categories. The brand uses a forwarder to send a pallet of those five products to Europe, and a 3PL ships them locally. Everything else still ships from the US. This hybrid setup speeds up delivery on the products that matter without filling a warehouse with slow sellers. We go deeper on that decision in our guide to holding stock in Europe vs shipping cross-border.

How to decide

Answer these questions honestly:

1. Are your European orders steady from month to month?
2. Do a handful of products account for most of them?
3. Are delivery times or returns losing you customers?
4. Are you prepared to register for VAT where your stock will sit?
5. Can you afford to tie up cash in stock that sits in Europe?
6. What is your fully landed cost per order under each model, including customs processing, VAT administration, returns and inventory holding?

Mostly no: keep shipping parcels from home, and get your IOSS and delivery terms right.

Mostly yes: compare a forwarder-plus-3PL model against your current landed cost, delivery performance and returns cost.

A mix: consider a hybrid. Put your best-sellers in Europe and ship the rest from home.

Where Trackveo fits

Trackveo is the 3PL part of this picture, but we work a little differently. We’re asset-light: we don’t own warehouses. Instead, we manage an extensive network of vetted warehouse and carrier partners across every European market. That means we can match each brand to the facilities and carriers that suit its products and markets, rather than fitting everyone into the one warehouse we happen to own. We’ve already done the work of choosing and coordinating partners country by country, so you don’t have to. We’re also upfront when direct shipping is still the better option for you. If you’d like a second opinion on your setup, our client support & consulting team is happy to look at it.

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