09/09/2025
The era of minimum shipping is over, but e-commerce brands still have options.
With the $800 duty-free threshold officially ending on August 29th, we've seen unprecedented demand for Foreign Trade Zone (FTZ) warehousing space. ShipBob added two new FTZ-designated facilities this year, located on the East and West Coasts.
FTZs allow brands to:
✅ Import inventory without prepaying duties
✅ Defer duty payments until the goods are actually shipped to customers
✅ Maintain healthy cash flow during this transition
✅ Continue efficient fulfillment operations
We've seen increased demand from apparel and beauty brands that previously relied on minimum shipping. These companies can leverage FTZ space to spread duty payments over time, rather than paying all duties upfront, thus avoiding a significant cash flow hit.
