What the end of De Minimis Rule Means for Small, Creative Businesses

The recent elimination of the U.S. de minimis exemption, a rule that once allowed low-value international shipments (under $800) to enter the country duty-free, marks a significant turning point for the global creative economy. This policy change directly impacts the livelihoods of thousands of small, independent businesses—from the individual solo artisan to the family-run shop.

This new reality introduces a series of challenges, from surprise fees for buyers to a complete disruption of international shipping for sellers.

What to Expect as a U.S. Buyer

Surprise Fees and Tariffs

The most significant change for buyers is the sudden appearance of customs fees and tariffs on low-value international purchases. A package that was once duty-free may now require an extra payment to be released from customs. This can lead to frustration, unexpected costs, and a higher risk of returned packages.

How this will work is still being defined. Until postal services establish effective systems, it's unclear if packages will be charged with a percentage fee according to the country of origin (e.g., 15% for EU countries) or a flat-rate fee, which in some cases could be as high as $80 regardless of the item’s value.

Shipping Delays

With every package now requiring formal customs processing, shipping times will increase. What once took days to clear may now take weeks, as customs offices are inundated with a massive volume of small packages that were previously exempt. Packages will likely remain in customs for an extended period, which, based on prior experience with holiday seasons, could be weeks.

Product Shortages

As international postal services (like Deutsche Post, Canada Post, etc.) temporarily suspend certain shipping options to the U.S. until new systems are in place, expect a significant reduction in available products. This disruption could last for weeks or even months.

Price Increases

Theoretically, "shop local" is healthy for a country's economy, but it's a complex matter. Its success or failure depends on many factors, with the "cost to shop local" being one of the most important. Many businesses have set up operations in other countries for a reason: they found it was more affordable. If running a local business means a higher operating and materials cost, then it is the most logical outcome to raise prices. Unfortunately, "shop local" doesn't always mean "shop cheaper."

What to Expect as a Non-U.S. Seller

Temporary Income Shortage

The suspension of key shipping services and the overall chaos will create an unpredictable gap in your U.S. income. This is the most critical immediate issue and will likely last until new shipping and customs processes are fully established.

Administrative Chaos

Prepare for an increase in buyer inquiries, confused customer messages, and a higher volume of returns or refused packages due to unexpected customs fees. You will also need to re-evaluate your shipping declarations and paperwork to comply with the new rules. It is a good idea to dedicate a portion of your budget for potential refunds.

Shift to Localization

Major marketplaces (like Etsy) are already prioritizing local sellers in search results. While this is a long-term strategy for their business, it means your store may be re-indexed and promoted to a new, local customer base. This will require a shift in your marketing strategy, a need to re-work your listings, and an order volume decline until localization makes up for the potential loss of U.S. orders.

What to Expect as a U.S. Seller

Higher Import Costs

If your business relies on imported materials (such as paper, silver findings, or other raw goods), even low-cost shipments will now be subject to duties and fees. This will force you to either absorb the cost, impacting your profit margins, or raise your prices.

What Can We Do?

While we have little control over global policy, we can control our response. This is a moment for every maker to be proactive and resilient.

The Financial Survival Plan

This is a time of great uncertainty, and it’s natural to feel anxious. With shipping services suspending U.S. shipments until they prepare an upfront duty fee collecting system, we are all in a state of flux. Some countries—including Greece—do not ship directly to the U.S. but via other shipping services from other countries, and many of these services have paused U.S. shipments.

There is a lot of fog, and no one can see clearly yet. Many non-U.S. Etsy shops are already excluding the U.S. from their shipping profiles until the situation clears. This not only means fewer handmade items are available for U.S. buyers but also that non-U.S. shops are facing potential financial challenges.

If you are a non-U.S. small shop owner and this is your day job, you might want to take some notes on the following: Now is the time for a critical financial review. Put down all your expenses, both personal and business, and make a plan.

• Cut Completely: Identify and eliminate non-essential expenses. This applies to both business and personal expenses. Can you pause a subscription, switch from a paid marketing service to free social media promotion, or downgrade your web hosting plan? Do you really need all these streaming services?

• Swap for Cheaper Alternatives: Find more affordable solutions for expenses you can’t cut. Can you use more economical shipping materials? Can you source your raw materials from a local supplier instead of importing them? Can you switch your gym subscription to a more affordable one, even if it means investing more time to get there?

• Smart Budgeting on Everything: Take a hard look at your overall budget. This includes everything from your marketing spend to your personal and family expenses. Every dollar saved is a dollar that can support you through the disruption for as long as it lasts. Can you do a weekly meal plan for your family and prepare ahead with a specific budget? Can you find cheaper alternatives on selected items, like detergents, cleaning products, or hygiene products? Can you openly discuss this with your partner, spouse, and kids? Can you invest your extra free time to do something valuable for you, your family, or your mental health (e.g., exercise, a free online course, reading, a new hobby!)?

The Emergency Plan

In a worst-case scenario, what is your backup? This could mean taking on a part-time job, diversifying your income streams, or even considering a more drastic change to weather the storm, like moving to a location with a lower cost of living.

A Note on Buyer Communication

While marketplaces may be communicating with buyers, a simple announcement on your shop can help manage expectations and show your customers you are on top of the situation. This will reduce confusion, negative reviews, and lost sales.

Sample Announcement (feel free to revise and use as you prefer)

"A note for our U.S. customers: Due to recent changes in U.S. customs policy, some international packages may now be subject to additional fees or tariffs upon delivery. This is a new, global policy that affects all international sellers. Please be aware that your package may be delayed in customs and may require an additional payment to be released. We understand this is frustrating and we are doing everything we can to navigate this new situation. Thank you for your patience and for supporting small businesses!"

The de minimis rule change is a significant hurdle, but it is not the end. The handmade community is built on a foundation of creativity and resilience. It is not the end of the world, and things might run smoothly in a few days—who knows? It's better to face this challenge with an open mind and without panic and fear.

(August 31, Post Updated below)

Some Tips to manage your NON-US Etsy Shop:

If you have excluded US from your shipping profiles - or if you charge an outrageous shipping cost to discourage orders from the US (basically excluding the US but indirectly, both ways work), expect a drastic drop on your sales, views (and income).

It's not exactly a "punishment": You just give different signals to the algorithm and it has to adapt. It will take a few weeks. So, don't panic!

You might want to stop optimizing your listings for US buyers.

Yes, this whole thing could come to a positive end (I highly doubt), yes, some sellers can (and should) use a DDP Courier Service - it makes absolute sense if you sell for example 18k gold jewelry, but for lower budget items, it probably won't work. 

Of course, you can use it if you want, and if someone is willing to pay such amount just for the shipping, you might want to reconsider your prices for the future: people ARE willing to pay greatly for what you make (cue the confetti!)

What does "US buyers listing optimizing" mean?

• Don't put sizes in inches, but cm/mm
• Don't put weight in pounds, but gr/kg

Work on some of your tags, titles and descriptions. US Etsy buyers love noise, exaggerating, loud statements and drama. 

You could rework some of your listings to resonate better with your regional buyers.

Etsy is actively pushing localization the past few months, now more aggressively than ever

I briefly mentioned it above, but here is what to notice (apart from the tanked sales - that's only half of the story!)

You will notice favorites and a slow yet steady shift to orders from other countries.

How to tell? Usually, I can tell by just the names of the people that favorite my items. For the orders it's more obvious. 

My guess is that this "shift" will take from 2 to 4 full weeks for well established shops, a bit longer (maybe 6 weeks) for smaller/newer shops.

DON'T GIVE UP and don't panic. Things will be slow for a while, too slow maybe, budget will be more tight than ever. You just need to keep going for as long as it lasts.

It will be a challenging time, but it will not last forever! Just make sure to hang on until then, okay?