How to Build a Business Case for Duty Recovery: Making the Numbers Work for Your E-commerce Brand

Introduction

Duty recovery isn’t just about compliance it’s about unlocking hidden profit in your returns process. For UK e-commerce retailers, especially those shipping internationally, unclaimed import duties and VAT on returns can represent a significant missed opportunity. Here’s how to build a compelling business case for investing in duty recovery, with real numbers and practical steps.

Quantifying the Opportunity

Start by estimating your annual international returns volume and the associated duties and VAT:

• Returns volume: How many orders are returned from outside the UK each year?

• Average duty & VAT paid per return: What’s the typical customs cost per returned item?

• Total potential recovery: Multiply returns by average duty/VAT to estimate your annual opportunity.

Example:

• 2,000 returns/year x £50 average duty & VAT = £100,000 in potential recoveries

Calculating the Cost of Inaction

Failing to pursue duty recovery means:

• Lost profit that could be reinvested in marketing, inventory, or customer experience

• Higher cost base and lower competitiveness

• Risk of compliance issues if records aren’t managed proactively

Making the Case to Stakeholders

• Finance: Focus on direct bottom-line impact and ROI

• Operations: Emphasise process efficiency and reduced manual workload

• Leadership: Highlight competitive advantage and risk mitigation

How Meridian Drawback UK Maximises Value

• No upfront fees performance-based model aligns our incentives with yours

• Full compliance management and audit trails

• Transparent pricing and clear timelines

Next Steps

Ready to see what duty recovery could mean for your business? Reach out for a free audit and let’s put real numbers to your opportunity.