Coffee & Commerce #52: The End of De Minimis, Brands’ Tariff Engineering & France’s $47.11-mn fine to Shein

Good afternoon,

Here’s the headlines for this week: 11 July 2025

ECOMMERCE

The "One Big Beautiful Bill Act" signed by President Trump will eliminate the de minimis exemption, which currently allows imports under $800 to enter the U.S. duty-free. This change will take effect on July 1, 2027, impacting e-commerce retailers and consumers by potentially increasing costs for low-value imported goods.
The removal of the de minimis threshold aims to level the playing field for domestic retailers who have been disadvantaged by the influx of duty-free low-cost imports.
This policy shift is expected to have significant implications for international sellers and may lead to adjustments in global ecommerce strategies.

Before Amazon Prime Day, cybersecurity experts identified over 120,000 fake Amazon-themed websites designed to deceive shoppers through phishing and malware.
These fraudulent sites aim to steal login credentials, trick users into downloading malware, or facilitate fraudulent purchases.
Consumers are advised to verify website URLs, avoid clicking on suspicious links, and use secure payment methods to protect themselves.

To mitigate the impact of increased tariffs, brands are turning to tariff engineering, modifying product features to classify them under lower-duty categories.
This includes altering materials, dimensions, or adding features to reduce import taxes.
Examples include Columbia Sportswear designing shirts with small zippered pockets to reduce duties and Converse adding felt to soles to classify sneakers as slippers, thereby lowering tariffs.

French authorities have fined e-commerce giant Shein €40 million (~$47.11 million) for deceptive practices, including misleading price reductions and false environmental claims.
The investigation revealed that Shein raised prices before applying discounts, giving a false impression of savings to consumers.
The Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) found that 11% of advertised discounts were actually price increases, and 57% of cases involved misleading promotions.

The Australian Competition and Consumer Commission (ACCC) has issued warnings about fraudulent online "ghost stores" that impersonate local businesses, often using platforms like Shopify and advertising on Meta's services.
These stores lure consumers with fake closing-down sales and often fail to deliver purchased goods, prompting the ACCC to urge stronger action from hosting platforms.
The ACCC received at least 360 complaints about 60 sites since early 2025, with issues ranging from counterfeit products and undelivered orders to refusal or partial refunds.

Meta has streamlined its advertising process by centralizing ad creation and management across WhatsApp, Facebook, and Instagram through its Ads Manager platform.
This move aims to simplify campaign management for businesses and enhance cross-platform marketing efficiency.
Additionally, Meta introduced new messaging ad options in WhatsApp, expanding advertising opportunities for businesses.

OpenAI has introduced a custom AI consulting service, offering tailored versions of its GPT-4o model to enterprise clients, with contracts starting at $10 million.
Early clients include the U.S. Department of Defense and Southeast Asian tech company Grab, indicating a strategic move into enterprise AI solutions.
OpenAI embeds forward-deployed engineers within client organizations to adapt the technology to specific use cases, competing directly with firms like Palantir and Accenture.

President Trump says a deal is nearly done for an American company to buy TikTok's U.S. operations, and negotiations with China will resume early next week for potential approval.
Although Congress passed, and the Supreme Court upheld, a law requiring TikTok's U.S. ban unless sold, Trump has repeatedly delayed enforcement via executive orders.
While the buyer remains unnamed, concerns linger over whether the deal meets U.S. requirements, especially around the algorithm. Trump insists the deal is financially beneficial to both nations.

Dutch ecommerce platform Bol.com is allowing sellers from outside the European Union to join its marketplace for the first time, starting with 100 international merchants this year.
The platform emphasizes strict quality control, requiring all products to be stocked within Europe to ensure compliance and customer satisfaction.
This strategic move aims to expand Bol.com's product assortment and maintain its competitive edge against global players like Amazon.