The End of De Minimis: What Shopify Merchants Need to Know and Do
08/06/2025 Laura McLoughlin

The End of De Minimis: What Shopify Merchants Need to Know and Do

If you’re running a Shopify store and sending orders across borders, there’s a big change you need to know about. The De Minimis rule – which used to let small orders cross borders without import taxes – is now gone in many countries, including the US and parts of the EU. This change makes selling internationally a good bit trickier and more expensive for smaller online businesses.

Let’s break down what’s going on, what it means for you, and what you can do to stay ahead.

So, What Was the De Minimis Rule?

The De Minimis rule meant that if you were shipping something cheap – say under £600 or so – you didn’t have to pay any customs duties or import taxes. Handy, right?

It kept costs low and meant quicker delivery because customs didn’t bother inspecting those small parcels. But now, that cushion’s been pulled away. Every single package – no matter how cheap – gets hit with duties, paperwork, and delays.

What This Means for Your Store

1. More Expensive Shipping

You now have to pay duties on every single order sent abroad – even if it’s just a £5 phone case. Shipping prices are creeping up, and there’s no way around it.

2. Slower Deliveries

Every parcel gets stopped at customs now, which means slower delivery times. The days of “straight through, no hassle” are over.

3. Higher Prices for Customers

You’ll probably need to pass some of these new costs on to your customers. That could mean higher prices – and fewer people hitting that “Buy Now” button.

4. Drop Shipping Just Got Riskier

If you're drop shipping from China (or anywhere else outside the UK/EU/US), it’s time for a rethink. With extra fees and slow shipping, profit margins are getting squeezed.

Practical Steps to Adapt

All isn't lost, though – here’s how to stay competitive and avoid being caught off guard:

Check Your Supply Chain

Find out which of your products are being shipped from countries now affected by the De Minimis changes, like China. If you're not sure, now’s the time to get clear on where everything’s coming from.

Track Your Costs

You’ll likely see more duties and customs fees per order—even on the cheap stuff. That means slimmer profits unless you change pricing or shipping.

Revisit Your Prices and Shipping Setup

Think about including customs fees in your prices or updating your checkout to warn buyers about possible extra costs. Better they know up front than get a surprise later.

Get Your Paperwork Right

Make sure each product has the proper country of origin and HS codes on the invoice. Clean paperwork avoids hold-ups at the border and helps prevent unhappy customers.

Keep an Eye on Cash Flow

With duties nibbling away at your margins, you’ll want to plan ahead. Make sure your finances can handle the extra bite from customs charges.

Think Carefully About How You Ship

Dropshipping directly from suppliers in affected countries is now slower and costlier. Consider local fulfilment centres or US-based warehouses to get around repeated fees and delays.

Stay Transparent with Customers

Be clear about any potential delays or charges. Honest info at the start means fewer refund requests and a lot less customer service hassle.

Look for New Suppliers

If you can, switch up your sourcing. Find products from places with lower tariffs—or at least ones not hit by the new De Minimis rules.

TL;DR – De Minimis Is Gone: What Shopify Sellers Need to Know

  • What’s changed?
    You can no longer send low-value international orders without paying import duties and taxes. Every parcel now gets hit with customs charges and paperwork—even cheap ones.

  • What’s the impact?

    • Shipping gets more expensive

    • Deliveries take longer

    • Customers may face higher prices

    • Drop shipping from overseas is riskier

    • More admin hassle for you

  • Who’s hit hardest?
    Small shops, drop shippers, and sellers of low-cost items.

  • What can you do?

    • Use local warehouses or fulfilment centres

    • Consolidate bulk shipments

    • Find suppliers with stock in your main markets

    • Be upfront about extra charges

    • Focus on higher-margin products

Final Thoughts

If you’re selling cross-border on Shopify, now’s the time to sort out your strategy. No more sneaking parcels through duty-free – but with a few changes, you can still run a strong, profitable shop.

Keep it simple:

  • Get stock closer to your customers

  • Watch your margins

  • Keep customers in the loop

The game’s changed, but you’re still in it – just play it smarter.

And if you need a little more guidance, you can always get in touch with us – we'd be happy to chat.

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