If you sell on Amazon or run a Shopify store, there’s one international shipping rule that can make a surprising difference to your bottom line: the de minimis threshold.
Most e-commerce entrepreneurs focus on product sourcing, marketing, and platform optimization, but how your products move across borders and what rules apply can have just as much impact on profitability and customer experience.
The de minimis value isn’t just another customs term. For cross-border e-commerce, it’s the difference between paying hefty duties and taxes or getting your shipments through smoothly and cost-free.
Below, we’ll explore 10 things every Amazon and Shopify seller should understand about de minimis, with examples, insights, and actionable tips for using this rule to your advantage.
1. What "de minimis" actually means in e-commerce
In the context of global trade, the term de minimis literally means “about minimal things” in Latin. In e-commerce, it refers to the minimum shipment value below which a country’s customs authority will not charge import duties or taxes.
Think of it as a free pass for low-value shipments. If your order’s declared value is below the set limit for that country, it’s allowed to enter without duty payments and often with simpler customs processing.
For example:
- USA: If you ship a $750 order from Canada to a US customer, it enters duty-free under the $800 threshold.
- Australia: The limit is AUD 1,000, meaning anything below that usually clears without duties.
However, there’s a key point for sellers: the de minimis value applies per shipment and is based on the declared customs value, which typically includes the product price + shipping + insurance (CIF value).
Why this matters for Amazon and Shopify sellers:
- If your international orders are mostly under the de minimis limit, you can promise no surprise customs charges to customers, a powerful selling point.
- If your orders often exceed it, you might need to adjust product bundles, pricing, or fulfillment strategy.
2. De minimis thresholds vary by country
A common misconception is that the de minimis value is the same everywhere; it’s not. Each country sets its own threshold, and the differences can be huge.
Here are some examples as of 2025:
| Country | De Minimis Threshold | Currency | Notes |
|---|---|---|---|
|
United States |
$800 |
USD |
High threshold – favorable for cross-border e-commerce |
|
Australia |
AUD 1,000 |
AUD |
One of the most generous in the Asia-Pacific region |
|
Canada |
CAD 40 (duties), CAD 150 (taxes) |
CAD |
Complex — different for duties vs. taxes |
|
United Kingdom |
£135 |
GBP |
Primarily a VAT threshold |
|
Singapore |
SGD 400 |
SGD |
Relatively high — boosts online shopping imports |
|
New Zealand |
NZD 1,000 |
NZD |
Applies to most goods but excludes certain products |
Why variation matters:
- Market entry strategy: A $500 product may ship tax-free to the US but incur duties in the UK.
- Pricing decisions: You might need different pricing for the same product in different countries to account for taxes.
- Fulfillment choices: Countries with very low thresholds might be better served by stocking inventory locally to avoid constant duty charges.
Tip for Shopify sellers: Maintain a spreadsheet or use an e-commerce tax calculator app to track thresholds for your top 10 to 15 international markets.
3. Amazon FBA and de minimis rules don't always align
Amazon’s Fulfillment by Amazon (FBA) program is designed for speed and convenience, but its operational model can mean that de minimis doesn’t always work in your favor.
Why? Because de minimis applies to shipments entering a country from abroad. Once your goods are in a local Amazon fulfillment center, customer orders are considered domestic, and customs rules no longer apply.
This means:
- When you ship inventory to an overseas FBA warehouse, you (the seller) are the importer of record. Duties and taxes are based on the shipment as a whole, not on individual customer orders.
- If your shipment is valued over the local de minimis threshold (which is almost always the case for wholesale FBA replenishment), you’ll pay duties upfront.
Example:
A US seller sends $5,000 worth of goods to Amazon’s UK fulfillment center. The UK’s de minimis is £135, far below your shipment value, so you’ll pay import VAT and possibly duties before your inventory is even available for sale.
Tip: If you want to take advantage of de minimis in FBA selling, consider direct shipping some products to customers overseas instead of only stocking locally.
4. Shopify stores have more flexibility to use de minimis
One major advantage Shopify sellers have over Amazon FBA sellers is fulfillment flexibility. Since you control your own logistics setup, you can design your shipping strategy to take full advantage of de minimis thresholds.
Possible strategies:
- Direct-to-consumer cross-border shipping: Send orders directly from your home country in packages that stay under the threshold.
- Order splitting: For large customer orders, break them into multiple shipments sent on different days to keep each under the limit.
- Strategic warehousing: Use 3PL providers with warehouses in multiple regions, routing orders from locations that minimize duties.
Shopify also offers integrations with duty-calculation apps, allowing you to show all-inclusive pricing at checkout. This transparency can boost conversion rates and reduce customer complaints about surprise fees.
5. De minimis can reduce total landed costs
Your landed cost is the total price a buyer pays for a product, including:
- Product cost
- Shipping fees
- Insurance
- Import duties and taxes
- Brokerage or customs clearance fees
When your shipment qualifies for de minimis, you remove the duties and taxes portion entirely, often saving 10–25% (or more) of the final cost for the customer.
Why it matters:
- Customers are price-sensitive. Lower landed costs can give you a competitive edge over sellers who ship without considering de minimis.
- Lower prices can mean higher sales volume without cutting your actual product price.
Example:
If you sell a $300 jacket from the US to Australia (AUD 1,000 threshold), your customer pays no duty or GST. The same shipment to the UK (threshold £135) would incur VAT and potentially duties, raising the customer’s total cost by 20% or more.
6. Not all products qualify for de minimis exemptions
It’s important to know that de minimis exemptions aren’t universal. Certain product categories are excluded, meaning duties and taxes apply regardless of value.
Common exclusions include:
- Alcohol and tobacco
- Perfumes with high alcohol content
- Precious stones and high-value watches
- Certain agricultural products and seeds
- Regulated pharmaceuticals
Amazon sellers need to be extra cautious; not only must you check de minimis exclusions, but you must also make sure the item is allowed in Amazon’s fulfillment network for that country.
Shopify sellers should verify HS codes (Harmonized System codes) for their products to confirm eligibility before promising “duty-free” shipping.
7. De minimis can speed up customs clearance
Shipments below the de minimis threshold often move through expedited customs processing:
- Automated screening instead of manual inspection
- Reduced likelihood of random checks
- Faster handoff to last-mile carriers
For Amazon sellers, this can mean better customer reviews for international shipments. For Shopify sellers, it can become a selling point — you can market “Fast International Shipping” with confidence.
This speed advantage also reduces the risk of packages sitting in customs for days, which can sometimes happen with higher-value goods that require more paperwork.
8. Splitting orders can help you stay under the threshold (but be careful)
Some sellers try to “game” the system by splitting one large order into multiple smaller shipments to stay under the de minimis limit. While this can work, it comes with risks:
- Customs may spot multiple packages going to the same recipient and combine their value, charging duties anyway.
- Multiple shipments often mean higher shipping costs.
- Customers might get frustrated receiving their order in separate packages over several days.
Better approach: If you use this tactic, ensure shipments are sent from different warehouses or spaced out by several days to reduce the chance of consolidation.
9. Courier choice can affect de minimis benefits
Not all couriers treat de minimis shipments equally. Even if your order qualifies for duty-free entry, some carriers may still:
- Charge brokerage fees
- Require customs forms for certain goods
- Have slower processing times
For example:
- DHL Express is known for fast customs clearance and efficient handling of low-value shipments.
- UPS and FedEx have reliable international networks, but sometimes add administrative fees even for duty-free packages.
If you’re a Shopify seller, you can choose your courier. Amazon sellers using FBA are more limited, but you still have some control over direct international shipments.
10. De minimis rules can change so stay updated
De minimis thresholds are not fixed forever. Governments adjust them in response to political, economic, or trade concerns.
Examples:
- The US raised its threshold from $200 to $800 in 2016, massively benefiting e-commerce.
- Canada has debated raising its low threshold for years, but has kept it low to protect domestic retailers.
- Some EU countries have recently made changes to how VAT is applied to low-value shipments.
If you rely on de minimis benefits, staying updated is essential. Subscribe to trade newsletters, follow customs authority announcements, or work with a 3PL that provides compliance alerts.
Conclusion
For Amazon and Shopify sellers, understanding de minimis isn’t optional; it’s a competitive necessity.
Used strategically, de minimis can help you:
- Lower international selling costs
- Increase conversion rates by avoiding surprise fees
- Deliver faster and more reliably
- Build trust with customers worldwide
Whether you’re running high-volume Amazon FBA operations or a lean Shopify DTC store, mastering de minimis can give you a clear edge in global e-commerce.
Frequently asked questions
Q1: Can I split an order into multiple packages to stay under the threshold?
A1: Yes, but customs may combine shipments sent to the same recipient on the same day. Best to space them out or ship from different locations.
Q2: Does de minimis apply to digital products?
A2: No. It only applies to physical goods crossing borders.
Q3: What if my shipment value is slightly above the threshold?
A3: In most cases, duties/taxes are applied to the entire value, not just the excess.
Q4: Do returns get de minimis benefits?
A4: No. Returns follow different customs procedures and may still incur charges.
Q5: Are shipping and insurance included in the calculation?
A5: Yes, most countries use the CIF value (Cost + Insurance + Freight) to determine shipment value.
