#USA #Chicago #ShipBob #De Minimis Defense #Foreign-Trade Zone

ShipBob's De Minimis Defense Program: An Essential Resource for Merchants

In a strategic move to enhance the capabilities of its merchants, ShipBob has officially announced its De Minimis Defense Program, aimed at easing the burden on SMB and mid-market omnichannel merchants affected by recent duty-free changes. This program is critical as regulations regarding duty-free de minimis imports are set to change, impacting many merchants just ahead of the busy holiday shopping season.

Understanding the De Minimis Defense Program

The changes, which will take effect after 12:01 AM Eastern Daylight Time on August 29, 2025, are due to an Executive Order that suspends the duty-free importing of goods under certain monetary thresholds. This poses new challenges for merchants, particularly those who have relied on low or no duties for their import operations. To counteract these challenges, the De Minimis Defense Program is designed to provide a rapid response to ensure that merchants can keep their operations running smoothly.

ShipBob’s offerings within this program include:

• - Fast Onboarding: Merchants can switch their operations to ShipBob’s platform within a week, utilizing over 60 fulfillment centers globally.
• - Travel Incentives: To familiarize merchants with the fulfillment network, ShipBob is covering travel costs for visits to their U.S. hubs.
• - Implementation Discounts: A significant reduction of up to 75% on implementation fees eases the transition.
• - Inventory Placement Savings: Discounts on inventory placement for first inbound orders of up to 50% are available.
• - Access to Partners: Merchants are provided discounted access to partners offering services like tariff mitigation, which are critical in navigating the new landscape.
• - Reduced Fulfillment Rates: Buyers can benefit from competitive shipping rates due to ShipBob's scale, which sees over 100 million orders shipped annually.

Bi-Coastal Warehouses: A Game Changer

To further bolster the De Minimis Defense Program, ShipBob has expanded its offerings to include Foreign-Trade Zone (FTZ) warehouses located on both coasts of the United States. These FTZ warehouses, situated strategically in California and Pennsylvania, provide unique advantages for merchants:

• - Duty Benefits: Merchants can defer duties and even eliminate them in certain cases, transforming the cost structure from 'pay duty on arrival' to 'pay duty on sale.' This shift allows businesses to secure their profit margins better and improve cash flow.
• - Enhanced Flexibility: Unlike bonded customs warehouses, FTZs offer indefinite storage capacities, giving merchants the agility they need in dynamic marketplaces.

As merchants gear up for what promises to be an exceptionally busy season, especially in categories like apparel and beauty, leveraging FTZ benefits becomes increasingly vital. For those looking to establish a robust U.S.-based fulfillment network, ShipBob's new program offers a promising avenue to secure supply chains amidst regulatory changes.

Conclusion

ShipBob's proactive approach through the De Minimis Defense Program positions it as a vital partner for merchants facing unprecedented duty changes. With significant support aimed at mitigating compliance pressures and enhancing operational efficiency, merchants are well-equipped to navigate these challenges and future-proof their businesses. Interested parties can apply for the program and explore the available resources on ShipBob's website.

As ecommerce continues to evolve, programs like these exemplify how partnerships can help businesses adapt and succeed in an ever-shifting landscape.