For years, the U.S. de minimis exemption helped ecommerce brands ship low value orders to American customers without the import duties that usually applied. That made direct to consumer shipping across the border simpler and, in many cases, less expensive. The rules changed on August 29, 2025, when the $800 de minimis exemption was generally ended for goods entering the United States.
For ecommerce brands, this means cross border orders now need closer attention to duties, customs, shipping costs, and delivery planning. If your business ships from Canada or other countries to U.S. customers, it is worth reviewing your current logistics strategy before these added costs affect your margins.
Here is what the end of de minimis means for ecommerce businesses and what you can do about it.
What Was the De Minimis Exception?
The de minimis exemption allowed certain low value shipments entering the United States to clear without the usual duties and with a simpler customs process.
The threshold had been set at $800, which made the rule particularly useful for ecommerce. A retailer could sell a relatively inexpensive product to a customer in the U.S., ship it directly from another country, and often avoid the import costs associated with a traditional commercial shipment.
That model worked especially well for brands using direct to consumer fulfilment.
The problem for retailers is that the cost advantage depended heavily on the exemption remaining available.
What Changed With the End of De Minimis?
As of August 29, 2025, the U.S. ended duty free de minimis treatment for qualifying low value shipments from all countries. Goods valued at $800 or less may now be subject to applicable duties, taxes, and fees. Non postal shipments also require the appropriate customs entry process through ACE.
With further changes since then, ecommerce brands should not assume that a small order will automatically avoid import costs.
The Important Point for Ecommerce Brands
A low value order is no longer automatically a low cost import.
That means the way you calculate landed cost needs to include the expenses associated with bringing the product into the United States.
Why Does This Matter for Ecommerce?
The change can affect a brand long before a package reaches the customer’s door.
A business that previously shipped individual orders from Canada, Asia, Europe, or another international market may now face additional import costs and customs requirements.
That can affect:
- Product margins
- Shipping prices
- Delivery times
- Customer expectations
- Returns
- Order fulfilment
- Inventory planning
- Cross border logistics
For products with a small selling price, these costs can be particularly noticeable.
A $30 product and a $300 product do not have the same room to absorb additional import expenses.
How Will the End of De Minimis Affect Shipping Costs?
There is no single additional cost that applies to every ecommerce shipment.
The final amount can depend on the product classification, country of origin, customs value, applicable duty rates, taxes, fees, and method of entry.
That is why simply adding a standard percentage to your shipping price may not give you an accurate picture.
For ecommerce brands, the better approach is to calculate the expected landed cost for each major product category.
Look at Landed Cost, Not Just Shipping Cost
Your shipping quote is only one part of the expense.
A useful calculation should consider:
Product cost + transportation + duties + taxes + customs fees + handling = landed cost
Once you know that number, you can decide whether the current fulfilment model still makes financial sense.
What Does This Mean for Canadian Ecommerce Brands?
Canadian ecommerce brands selling to U.S. customers need to take a closer look at their cross border shipping costs. A low value parcel is no longer automatically exempt just because it is under $800.
The country of origin also matters, since shipping a product from Canada does not necessarily make it Canadian origin. Proper product classification and documentation are now important. For businesses in Toronto, Mississauga, Oakville, Brampton, and across Ontario, it may be time to review if direct shipping is still the right option.
Should Ecommerce Brands Move Inventory Into the U.S.?
For some ecommerce brands, keeping inventory closer to U.S. customers may be worth considering. Instead of shipping every order across the border, businesses can move stock in larger shipments and fulfil orders domestically.
This can help with:
- Faster delivery
- Fewer cross border shipments
- Simpler customs handling
- Better inventory planning
Run the Numbers First
The right choice depends on your U.S. order volume. A few orders each week may not justify the added storage costs. For brands shipping hundreds or thousands of orders monthly, U.S. fulfilment could offer a more practical approach. Compare the costs before making the move.
What Should Ecommerce Brands Do About Customs?
Customs now needs to be part of your shipping plan. Before sending orders to the U.S., make sure you know:
- Product classification
- Country of origin
- Customs value
- Duties and fees
- Required paperwork
- Importer responsibilities
- Who covers the import costs
If your team does not handle customs regularly, a customs broker or logistics company can help keep things on track.
Do Not Forget the Customer Experience
Import costs can also affect how customers feel about their purchase. Someone ordering a $45 product may not be happy if an unexpected charge appears at delivery.
Be upfront about duties, taxes, and shipping costs during checkout. Clear pricing gives customers a better idea of what they will actually pay and can help avoid complaints, refused deliveries, and return issues.
Should Ecommerce Brands Change Their Shipping Strategy?
For many businesses, this is the right time to review the entire ecommerce shipping strategy rather than simply increase shipping prices.
You may find that different products need different approaches.
For example:
| Ecommerce situation | Possible approach |
| Low U.S. order volume | Continue cross border shipping and review landed costs |
| High U.S. order volume | Consider U.S. inventory or fulfilment |
| Small, low margin products | Recalculate whether direct shipping remains profitable |
| High value products | Review duties, insurance, customs and delivery carefully |
| Fast delivery promise | Consider inventory closer to U.S. customers |
| Frequent returns | Plan reverse logistics before changing fulfilment |
There is no universal answer. The right model depends on what you sell and where your customers are located.
How Can Ecommerce Brands Reduce the Impact?
The end of de minimis does not mean ecommerce businesses have to stop selling into the U.S.
It does mean the old fulfilment assumptions need to be revisited.
Review Your Product Margins
Start by identifying which products are most affected by import costs.
A product with a healthy margin may absorb the additional expense. A low margin product may need a different shipping or fulfilment model.
Look at Consolidated Shipments
Instead of moving individual orders across the border, some businesses may benefit from sending inventory in larger consolidated shipments and fulfilling orders locally.
This can reduce the number of individual cross border movements and create a more predictable delivery process.
Consider Regional Inventory
If the U.S. represents a significant share of your sales, keeping inventory closer to American customers may become more attractive.
For a Canadian ecommerce brand, this could mean using a U.S. warehouse or third party logistics provider rather than shipping every order from Canada.
Review Your Returns Process
Returns deserve attention too.
When a customer sends an item back across the border, the logistics and customs process can become complicated. A U.S. based returns location may make sense for brands with enough American sales volume to justify it.
How Go Logistics Can Help Ecommerce Brands
For Canadian ecommerce businesses, the end of de minimis also means taking a closer look at fulfilment and delivery. Go Logistics provides warehousing, fulfilment, sortation, distribution, final mile delivery, home delivery, and reverse logistics services across Canada.
Keeping these services connected can make it easier to manage orders, shipments, and returns from one logistics operation. Go Logistics also provides real time shipment visibility to help businesses keep track of deliveries.
If your ecommerce business operates in Toronto, Mississauga, Oakville, Brampton, or the GTA, now is a good time to review your logistics setup and cross border shipping costs. Contact Go Logistics to discuss your fulfilment and delivery needs.
Final Thoughts
The end of the de minimis exception changes how ecommerce brands need to approach U.S. shipping. Low value orders can now bring additional duties and import costs, making landed costs, customs, fulfilment, and inventory planning more important.
Before changing your prices or shipping model, look at your actual order data and identify where the added costs are coming from. For some businesses, direct cross border shipping may still make sense. Others may benefit from U.S. fulfilment or consolidated shipments.
The right approach depends on your products, customers, and shipping volumes.
FAQs
What is the de minimis exemption?
The U.S. de minimis exemption provided duty free treatment for certain low value imports. The exemption was suspended for applicable shipments from all countries effective August 29, 2025.
Is the $800 de minimis exemption still available in 2026?
Generally, no. The U.S. continues to suspend duty free de minimis treatment for shipments covered by the current rules, including qualifying low value shipments that previously entered under the exemption.
Does the end of de minimis affect Canadian ecommerce businesses?
Yes. Canadian brands shipping individual orders to U.S. customers need to account for applicable duties, taxes, fees, and customs requirements rather than relying on the former low value exemption.
Will ecommerce shipping to the U.S. become more expensive?
It can. The final cost depends on the product, country of origin, classification, applicable duties, taxes, fees, and shipping method.
