Etsy and eBay In Big Trouble with De Minimis Gone

As of August 29, 2025, the U.S. has officially ended its nearly century‑old “de minimis” policy.

This means no more duty‑free entry for packages under $800 from any country. The move expands on a policy shift in May that already excluded China and Hong Kong.

This drastic change is affecting any retailer shipping from outside North America. Temu and Shein were hit first—now eBay and Etsy sellers are facing the fallout.

Handling Costs, Not Duties, Are the Major Issue

Last fiscal year, 1.36 billion packages—totaling $64.6 billion—entered under de minimis, with 73% from China and the rest from other countries.

Here's what's changing:

  • Postal carriers like Japan Post and Australia Post are pausing U.S. deliveries while they sort out the new rules.
  • Tariffs now range between 10%–50% depending on origin—plus flat handling fees of $80–$200 during a six‑month transition.
  • Sellers on Etsy, eBay, and other platforms are scrambling—some raising U.S. prices, others halting shipping to the U.S. altogether.

The actual duties are relatively minor, often falling between 10% and 50% based on the country of origin. The bigger issue? Handling costs—customs brokerage, processing fees, and administrative overheads that can easily outstrip the value of low-cost goods.

In countries with little or no de minimis threshold, brokerage fees have long been a sticking point. For reference, here's a breakdown of UPS customs brokerage fees charged to Canadian customers:

Sample customs brokerage charges from UPS for packages going to Canada. Brokerage and handling charges have long been charged to customers in many other countries.

Whether these handling costs will be reduced or waived in the future remains to be seen.

eBay and Etsy Sellers Hit Particularly Hard

Unlike Amazon, which typically stores and ships inventory from within the U.S., most eBay and Etsy sellers fulfill their own orders. That means cross-border shipments are now directly affected by this policy shift.

For U.S.-based sellers, the impact is negligible. But for those abroad, it's a different story.

Many artists, hobbyists, and niche brand owners depend on affordable international shipping to stay competitive. Without de minimis, they now face:

  • Decisions about absorbing tariffs, raising prices, or cutting off U.S. customers.
  • Increased complexity around customs documentation, HTS codes, and tariffs.
  • Potential backlash from customers receiving surprise fees on delivery.
  • A need to shift to logistics providers with stronger customs infrastructure.

At the time of writing, Etsy and eBay stocks are down roughly 8% to 10% for the week, reflecting investor concerns.

Nearly 50% of eBay and Etsy Sales Come from Overseas

Both eBay and Etsy have a significant share of cross-border commerce, though precise figures for U.S. buyer reliance on overseas sellers aren't public.

On Etsy, about 45% of all transactions are international, and roughly 28% of sellers ship outside their home country. Meanwhile, 74% of Etsy’s Gross Merchandise Sales (GMS) come from U.S. buyers, indicating that a large number of international sellers are targeting the U.S. as their primary market. 

eBay shows a similar pattern. Around 48% of eBay’s total transaction volume happens in the U.S., and nearly half of the platform’s revenue comes from international selling, which includes both foreign buyers and sellers. This suggests a robust cross-border seller base catering to U.S. consumers. 

Strategies for Cross-Border Sellers

Sellers have two main paths forward—one short-term, one long-term.

Short-term: Use Delivered Duty Paid (DDP) shipping. This means tariffs and fees are paid upfront, preventing surprise charges for customers and reducing friction at the border.

Long-term: Store and fulfill inventory within the U.S. This avoids tariffs and handling fees entirely while also cutting down shipping times and customs delays.

Conclusion

Ending the de minimis rule brings an end to 86 years of frictionless, low-cost importing. Platforms like Etsy and eBay must adapt quickly. For international sellers, it's time to recalibrate shipping strategies, pricing models, and customer communication—or risk losing a key market.

Dave Bryant

Dave Bryant has been importing from China for over 10 years and has started numerous product brands. He sold his multi-million dollar ecommerce business in 2016 and create another 7-figure business within 18 months. He's also a former Amazon warehouse employee of one week.

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