Shipping to the US? Avoid costly surprises. Here’s how.

• The U.S. has removed the $800 de minimis threshold.
• Australian exporters must now carefully choose shipping lanes based on compliance requirements. These include accurate product classification, prepaid duties, and clear upfront transparency.

For years, shipping to the U.S. was a simple game of trade-offs. You picked your lane. Postal if you wanted affordability. Express if you wanted fast. Hybrid if you wanted to have a balance between both.

It worked. Margins were predictable, customers were happy, and the world spun comfortably on $800 of duty-free grace. Then the grace period ended.

In August 2025, the U.S. removed the $800 de minimis threshold, ending duty-free entry for parcels under that amount. The effect was immediate and brutal: suddenly, every box, bottle, and beauty kit needed an HS code, prepaid duties, and transparent pricing before it even left Australia.

The free ride was over. Now, compliance sits in the driver’s seat.

Postal lanes used to be the no-brainer: low fees, slow delivery, predictable profits. But under the new rules, predictable comes with an asterisk. Third-party customs handling means your parcel might glide through or get caught in a fog of unpaid duties that show up later, quietly slicing your margins.

Example: A $50 beauty kit to send to California. Before, you would get a $10 margin. Now, add duty (~$3) and state tax (~$4.25). You’re down to $2.75 and that’s if nothing else goes wrong.

Tip: Low-cost shipping is still possible, but not without transparency. Build duty and tax estimates into your checkout or watch your profits vanish in the fine print.

Express shipping is the espresso shot of logistics. It’s fast, reliable and addictive. Carriers like DHL and FedEx handle customs with military precision. But the bill for that speed can sting if you haven’t priced duties and taxes correctly.

Example: A $200 apparel order to New York will get you $40 as margin. Now, with the removal of the $800 de minimis threshold, you are left with duty (~$24) and state tax (~$17.75) that chew most of that up. The package gets delivered on time but your profit doesn’t.

Tip: Speed only wins if it’s sustainable. Use landed cost data before you ship so you know exactly how much ‘fast’ really costs.

Hybrid shipping was supposed to be the golden mean: some orders postal, some express, depending on need.

In theory, balance.
In practice, confusion.

When duties and taxes vary across carriers, customers notice. One order arrives with fees paid, the next without — cue refund requests and angry emails.

Example: Take a $100 subscription box to Texas. Before: $18 margin. After: $6 duty + $8.25 tax = a margin cut more than half. Multiply that inconsistency across hundreds of shipments and you’ve got a finance headache with a side of customer churn.

Tip: Consistency beats cleverness. Apply the same compliance logic across every shipping lane, every time.

Compliance used to be something your accountant worried about. Now it’s part of how customers judge you. 

Hidden costs feel like broken promises.
Transparent pricing feels like respect.
And in a market flooded with choice, respect is the one currency you can’t automate.

So before you choose your next shipping lane, ask yourself:

• Are duties and taxes clear at checkout?
• Are your HS codes consistent across SKUs?
• Are margins predictable after customs and state taxes?
• Are you treating compliance as a cost or as a trust signal?

The exporters who win this new game won’t be the cheapest or the fastest. They’ll be the ones who make clarity part of the customer experience.

The end of the $800 de minimis rule didn’t break ecommerce, it exposed it. It showed who understands their supply chain and who’s been coasting on luck.

The smart move now isn’t to panic; it’s to plan. Automate where it matters, calculate before you commit, and show your customers the full story up front. Because in 2025, “no surprises” is the best delivery promise you can make.

Avalara Cross-Border connects your product catalogue, shipping systems, and tax data to automate landed cost calculation and electronic customs filing across 13,000+ U.S. jurisdictions. It turns compliance from a manual drain into an automated advantage.

Ready to simplify your shipping compliance?

Schedule your quick 20-minute AvaTax Cross-Border readiness check with Avalara. See firsthand how we can help you maintain compliance, protect margins, and keep customers satisfied.

What was the $800 de minimis threshold?

It allowed parcels under US$800 to enter the U.S. duty free. Its removal means all shipments must now include accurate HS codes, prepaid duties, and full customs data.

Why is compliance now so important in shipping?

Hidden costs emerge without compliance, harming profitability and customer trust. Compliance ensures predictable costs and better customer experiences.

How does Avalara simplify shipping compliance?

Avalara AvaTax Cross-Border automates product classification, calculates duties and taxes in real-time, and ensures compliance is consistently applied across all shipping methods.

What are the risks of ignoring shipping compliance?

Ignoring compliance leads to unexpected costs, negative customer experiences, operational confusion, and reduced profitability.

What is a shipping lane?

A shipping lane is the route or method used by exporters to deliver products from the origin to the destination. Choosing the right lane — postal, express, or hybrid — depends on factors like cost, delivery speed, and compliance requirements.