How the End of De Minimis Affects Small Online Sellers

For years, small online sellers had a quiet advantage. A package worth $800 or less could enter the United States duty-free, with minimal paperwork, under a rule known as de minimis, or Section 321. That rule powered dropshipping, made it cheap to order samples and small batches from overseas, and let foreign marketplaces ship straight to American shoppers.

That advantage is gone. Duty-free de minimis treatment has been suspended for all countries since August 29, 2025, and the suspension has survived major legal changes to US tariff policy since then. If your store imports products, uses overseas suppliers or dropships from abroad, your costs, paperwork and delivery times have probably already changed.

This guide explains what changed, who it affects and how small sellers are adjusting. Trade rules have shifted many times in the past 18 months and may change again, so confirm current requirements with US Customs and Border Protection (CBP) or a licensed customs broker. This is not legal or tax advice.

What de minimis was

Section 321 of the Tariff Act of 1930 allowed CBP to admit low-value shipments free of duty and taxes. The threshold rose from $200 to $800 in 2016. Under CBP’s rules, 1 person could import multiple shipments in a day duty-free as long as their combined value didn’t exceed $800.

For ecommerce, this meant:

• Direct-to-consumer shipments from overseas warehouses and factories entered duty-free.
• Simplified clearance, with less data than a formal or informal entry.
• Lower landed costs for dropshipped goods compared with bulk imports, which paid duty.

Over time, the volume of low-value packages grew enormously, and policymakers argued the exemption gave foreign sellers an edge over US businesses that imported in bulk and paid duties.

Timeline: how de minimis ended

The details of which tariffs apply have changed several times during this period. What has stayed constant since August 2025 is that low-value commercial imports no longer enter duty-free. Gift exemptions for genuine gifts and traveler allowances are separate and weren’t affected by the June 2026 rules.

Key takeaway: Plan as if duty-free low-value imports are gone for good. The administrative suspension is indefinite and the statutory repeal arrives on July 1, 2027. Build duties, entry costs and longer clearance times into every imported product’s landed cost.

Who’s affected and how

Dropshippers using overseas suppliers

This is the biggest change. Each order shipped from an overseas supplier to a US customer is now an import that owes duty and needs an entry. Dropshipping from abroad still works, but the per-order math has changed. Costs that used to be zero now include duties, possible broker or carrier clearance fees, and more delays. See how dropshipping works for the model’s other risks.

Small brands importing inventory in small batches

If you used to order small batches or samples by mail or express and pay no duty, those shipments now carry duty and paperwork. Many sellers are shifting toward fewer, larger shipments, where entry costs are spread across more units.

Sellers using foreign postal shipping

For mail, CBP’s new postal informal entry process, effective July 24, 2026, covers eligible merchandise valued at $2,500 or less. According to CBP’s announcement and legal analysis of the rule, filing is limited to the owner or purchaser of the goods or a licensed customs broker they designate. Expect your overseas supplier to change how they ship, or to pass entry costs on to you.

US sellers competing with overseas marketplaces

For sellers who already import in bulk and pay duties, this change can level the playing field. Overseas marketplaces that relied on duty-free direct shipping now face similar duties, which narrows their price advantage.

US sellers shipping abroad

The US change affects imports into the United States. If you export to customers in other countries, you face their rules instead. Several of them are also tightening low-value import rules, such as the EU’s new €3 per-item duty from July 1, 2026. See shipping internationally: customs, duties and paperwork.

What your landed cost now includes

Landed cost is the total cost of getting a product to your customer or warehouse. For imported goods, review each piece.

Duty rates depend on the product’s 10-digit HTS classification, its country of origin, and any tariff actions in force at the time of entry. These have changed often since 2025, so check current rates in the USITC Harmonized Tariff Schedule or with a broker before you price a product.

How small sellers are adjusting sourcing

There’s no single fix, but these approaches are common:

• Consolidate shipments. Import inventory in larger batches through formal or informal entry, then fulfill from a US warehouse or 3PL. Entry costs are spread across more units and US delivery is faster.
• Use US-based fulfillment for dropshipping. Many suppliers and dropshipping platforms now hold stock in US warehouses, so the import happens once in bulk rather than per order.
• Diversify supplier countries. Tariff actions differ by country of origin. Compare total landed cost, not just unit price, and remember that origin depends on where a product is substantially made, not where it ships from.
• Look at domestic suppliers and print on demand. US-made or US-printed products avoid import duties entirely for the finished good. See how print on demand works.
• Cut slow sellers. With higher landed costs, low-margin products that barely sold may no longer be worth carrying.

How to adjust pricing

Once you know your new landed cost, update prices product by product.

1. Recalculate gross margin for every imported product using the new landed cost.
2. Raise prices selectively on products with strong demand and weak price competition.
3. Rebalance shipping. If you offer free shipping, recheck your threshold. See how to offer free shipping without losing money.
4. Bundle products to raise order value and spread fixed costs.
5. Communicate clearly. Customers have seen tariff headlines. A short, honest note about price changes beats silent increases.
6. Review delivery promises. If clearance adds days, update your shipping times so customers aren’t surprised.

Where to start: a 6-step de minimis checklist

1. List every product you import, how it ships (mail, express courier or freight) and who acts as the importer.
2. Confirm HTS codes and country of origin for each product. Accurate data is now required for every entry.
3. Ask suppliers how they’re handling US entries, who files them and who pays duties and fees.
4. Recalculate landed cost and margin for each product.
5. Decide on a sourcing model: keep direct shipping, move to bulk import and US fulfillment, change supplier countries or switch to domestic sourcing.
6. Get a customs broker’s advice if you import regularly, especially before the July 1, 2027 statutory repeal.

Data tools can help track landed costs across suppliers. Our guide to supply chain analytics covers the basics.

Conclusion

The end of duty-free de minimis turned low-value imports from a near-free channel into a regular import process with duties, data requirements and entry costs. Small sellers who relied on cheap direct shipments from abroad feel it most. The fix is to know your true landed cost, shift toward consolidated imports or US-based fulfillment where it makes sense, and price products on today’s numbers. Watch for further changes, since US tariff policy has moved quickly, and lean on a customs broker when in doubt. For more guides, browse our top lists or the glossary.

This is not legal or tax advice.

Sources

• Federal Register: Indefinite suspension of the de minimis exemption for merchandise arriving through all modes other than mail (June 24, 2026) — interim final rule for non-postal imports of $800 or less
• CBP CSMS: Updated guidance on postal informal entry process (July 2026) — indefinite suspension for mail imports and new postal entry process from July 24, 2026
• CBP CSMS #66065494: De minimis suspension for all countries — end of duty-free de minimis for all countries from August 29, 2025
• CBP: E-commerce FAQs — how Section 321 and the $800 daily aggregate worked