The U.S. government is introducing new tariffs that directly impact how dropshipping businesses operate. These changes may lead to increased costs, but there are ways to prepare and reduce the impact. This guide explains what the new tariffs mean, how they work, and what Zendrop is doing to help dropshippers adapt.
What is changing with the de minimis exemption?
For years, dropshipping businesses have benefited from the de minimis exemption. This rule allowed any international shipment valued under $800 to enter the U.S. without paying import duties. Since most dropshipping orders fall under that threshold, sellers were able to avoid additional costs.
This exemption is now being removed. Starting May 2, 2024, all shipments entering the U.S., including those under $800, will be subject to tariffs. This change affects nearly every dropshipping business that imports products from international suppliers.
How are the new tariffs applied?
The new tariff applies only to the cost of the product being imported, not the total cost of shipping or fulfillment. For example, if a product costs $5 and it costs $15 to ship to the customer, the tariff is calculated only on the $5.
Some goods may be subject to tariffs as high as 104 percent. That means a $5 product may now incur an additional $5.20 in import fees. While this adds to the cost, it is not as extreme as taxing the full $20 spent to fulfill the order.
There is also a proposed $25 minimum fee per shipment. For single-item dropshipping orders, this flat fee would significantly reduce profitability. Zendrop is actively working on solutions to make the impact of this as small as possible for sellers.
How Zendrop is helping dropshippers navigate new tariffs
In addition to tariff management, Zendrop offers access to suppliers with U.S.-based warehouses. Domestic fulfillment options allow sellers to avoid international shipping issues and reduce delays. Using third-party logistics (3PL) partners is becoming more important as global shipping costs and regulations continue to shift.
Dropshippers can also benefit from fulfillment automation tools that track orders, monitor changes in fees, and route shipments through the most cost-effective channels. These tools reduce manual work and allow sellers to focus on marketing and growth.
Steps dropshippers can take today
If you run a dropshipping business, now is the time to review your supplier relationships and shipping workflows. Choose suppliers with transparent pricing, warehouse networks in key regions, and the ability to scale with your business. A helpful resource is our list of top U.S.-based dropshipping suppliers who are equipped to handle shifts like these.
You should also consider fulfillment strategies that reduce customs risk and shipping time. Working with U.S.-based suppliers or using 3PL services can reduce reliance on international shipments and help protect your store from future disruptions.
Tariffs are changing, but dropshipping is not going away. Sellers who adapt quickly and make smart logistics decisions will be positioned to succeed in the new environment.
Final thoughts on dropshipping tariffs
The removal of the de minimis exemption is a major change for the dropshipping industry, but it is not the end. Zendrop is committed to helping merchants adapt and thrive. By rethinking your fulfillment strategy and using the tools available, you can continue to run a profitable business while meeting new regulatory requirements.
Frequently asked questions
Who is affected by the new tariffs?
All international sellers shipping to the U.S. are affected. Dropshippers sourcing from China or Hong Kong are most impacted, as these shipments no longer qualify for the $800 de minimis exemption.
Do tariffs apply to low-cost dropshipping orders?
Dropshippers use a broad range of apps, from Shopify to create online stores to Zendrop for product sourcing, Mailchimp for email marketing, and many more.
How much are the new tariffs?
Tariffs vary by product category and origin. For many products from China, the combined duty can exceed 50% of the product value. Some shipments also face a minimum $25 fee.
How will this affect shipping and fulfillment?
Expect more customs processing and potential delays. All packages must now be cleared, and accurate documentation is essential.
What can I do to reduce the impact?
Consider sourcing from other regions, using U.S.-based 3PLs, raising product prices slightly, or grouping shipments to share fees across multiple orders.
Are small orders still profitable?
Margins on low-cost items are tighter. Focus on higher-value products, optimize your pricing, and review your supplier strategy to stay competitive.
