2025 Creator’s Guide to Managing Tariff & Shipping Risks

This post was guest authored by Brandon Rollins of Fulfillrite. Thank you, Brandon, for sharing your expertise!

If you’re thinking about launching a Kickstarter campaign this year, you have to treat shipping like it’s part of the plan from the beginning. Between tariffs (taxes on imports) and the end of the de minimis loophole, costs to ship to the U.S. are going up fast. Meanwhile, in the EU & the UK, there are a lot of regulations to follow.

Shipping costs used to be fairly predictable. But that’s just not how it works anymore.

The creators who succeed this year will be the ones with good products, yes. But they’ll also be the ones who understand landed costs, the gritty mechanics of customs and duties, and how to manage risk.

The difference between profit and loss now comes down to three strategic levers:

• Where you source
• How you ship
• How well you plan for the unexpected

You don’t need to be perfect. This isn’t about obsessing over every decimal point. It’s about staying one step ahead so you’re not caught off guard when the bill comes due.

Key Takeaways

1. Shipping is tougher in 2025. New tariffs, the end of the U.S. de minimis exemption, and stricter EU and UK VAT rules make costs less predictable and compliance more complex.
2. Always calculate full landed costs. Include manufacturing, freight, tariffs, VAT, brokerage, and delivery to understand the true cost of delivering your product to backers.
3. Confirm HS codes early. Misclassification can lead to delays, surprise fees, or higher duties, so verify codes with a customs broker or 3PL before launch.
4. Plan multiple cost scenarios. Consider optimistic, realistic, and pessimistic models, and explore nearshoring or regional fulfillment to reduce risk if tariffs rise unexpectedly.
5. Use DDP and experienced 3PL partners. Paying duties upfront and partnering with logistics experts ensures smoother delivery and fewer backer complaints.

Why Is Kickstarter Shipping Difficult In 2025?

The year 2025 has been a year of big headlines and lots of surprises. But for Kickstarter creators, there are essentially just three major changes worth paying attention to:

1. Tariffs are becoming more common. International trade was either free or inexpensive prior to this year. Tariffs are making it expensive for the first time in decades.
2. The de minimis customs exemption is gone. Small packages under $800 used to be able to go into the U.S. without tariff customs charges. As of August 29, 2025, this is no longer true.
3. Europe is changing VAT rules. This is increasing the complexity of compliance when it comes to international shipping.

Taken together these three factors combine into a fourth one: shipping is becoming less predictable. And that’s because you can’t budget for variables you don’t understand. Tariff rates and European regulations are both in flux.

For creators, it means adjusting to a world where “make it in China, freight it to the U.S. & Europe, ship to backers” might not be the best path forward anymore.

Top 3 Things You Need To Know About Tariffs

Tariffs are taxes on imports, and like any tax, they’re complicated.

Tariff rates vary based on type of product and country origin. So if you want to calculate them, you need to be able to know which rate applies to you, how it will affect your costs, and how to keep track of rate changes.

Here are three specific things you need to know to do that.

1. Tariff rates depend on your product’s HS code.

Your product’s Harmonized System code is arguably the most important number when it comes to assessing tariffs.

HS codes work like a taxonomy. The first six digits are internationally standardized, but countries add 2-4 more digits for specific classifications. A “wireless speaker” might be 8518.22.00 in the US but 8518.22.0010 for Bluetooth-specific models.

The catch: your prototype might classify differently than your final product. Adding a battery, changing materials, or including software can shift you into a different tariff category entirely. A plastic case might be duty-free, but add electronics and suddenly you’re paying 15%.

Country-specific quirks matter too. The EU treats power banks as batteries (high duties), while the US classifies them as electronic accessories (lower duties).

This is one of those areas where a good freight and customs broker can help a lot. Taking the time to find one can save you a lot of trouble. And if you just need quick and simple estimates earlier on in the process, you can use SimplyDuty to estimate taxes and figure out what the situation is like for your HS code. This is true for both U.S. tariffs and EU regulations.

2. Tariffs will increase your landed costs.

Landed cost isn’t just manufacturing plus shipping. It’s manufacturing + freight + tariffs/duties + VAT + brokerage + shipping to customer (postage + supplies + 3PL fees).

The best way to calculate this is by creating a spreadsheet to collect all this information and add and multiply as needed.

• Manufacturing costs come from your manufacturing.
• Freight, tariffs/duties, VAT, and brokerage can all be provided by a freight broker.
• Shipping costs can be provided by your 3PLs (third-party logistics providers) or by adding up the cost of supplies and postage (if you self-ship).

There is no shortcut for calculating landed cost quickly. And it wouldn’t be desirable to take a shortcut if there were. Taking the time to gather this information and do the math will help you make sure your campaign is financially viable and will help you spot areas for potential savings.

3. You need good, up-to-date sources of information on tariffs because rates are subject to change.

Tariff rates change often so you need to keep an eye on the news.

Set up Google alerts for your product categories plus terms like “tariff,” “HS code,” and “trade policy.”

The 30 minutes you spend doing this will help you stay current and might help you save a bunch in fees too.

Calculating Shipping Costs Before Launching

Before you launch your Kickstarter, you need to be able to calculate shipping costs. To help you build your shipping cost model, here are three smart things you can do:

1. Use landed cost calculators.

Use SimplyDuty to get a quick estimate of your shipping costs. Just enter your product’s HS code, where it’s coming from, and where it’s going. It’ll show you the expected duty rate and taxes for that country.

It’s not perfect, but it’s good enough to catch major cost issues before they surprise you. Save your results in a spreadsheet so you can use them to plan your campaign pricing.

For postage estimates, check carrier tools like USPS Retail Postage Calculator, Pirate Ship, or Easyship. These give you real-world rates based on box size, weight, and destination.

2. Use the right HS code.

Don’t guess your HS code. Changes in materials, design, or software can shift your product into a higher-duty category.

Tariff rules aren’t the same everywhere. Something that clears duty-free in the U.S. might face a 10–20% tax in the EU. If Europe is a major market for you, check your HS code using the EU TARIC database or ask your 3PL provider to confirm how it’s typically classified. Better to catch a mismatch now than after hundreds of packages get stopped at the border.

It takes time and a bit of money, but it’s cheaper than dealing with misclassified bulk shipments later.

3. Make backup plans.

Don’t try to predict the future. Plan for multiple different outcomes.

Map out three shipping cost scenarios: optimistic, realistic, and pessimistic. Most creators only plan for the best case—and that’s a recipe for stress.

Use the optimistic version to check feasibility. Use the realistic model to price your campaign. And use the worst-case plan to prep for problems.

If your costs go up 30%, can you still deliver? Know the answer before you launch.

Tips For Tariff-Friendly Sourcing & Manufacturing

Where you manufacture determines how much you’ll pay in tariffs, as well as how long lead times will be. It’s tempting to go with the manufacturer that provides the lowest cost per unit. But when you factor in other elements, that can often be a mistake. Here are three things to consider:

1. Find the lowest price place to manufacture.

And I don’t just mean that in terms of manufacturing cost alone. Landed cost is king. That is, the total cost of a product including the manufacturing, freight, tariffs, shipping, and anything else required to bring the product to the buyer.

Nearshoring means manufacturing closer to your target markets—Mexico for U.S. sales, Eastern Europe for EU sales. Unit costs run higher than China, but you save on tariffs and shipping time, while also reducing political risk.

Mexico offers USMCA advantages for US-bound shipments. Likewise, Eastern European manufacturing (Poland, Czech Republic, Hungary) gives you EU market access without external tariffs.

You might not always be able to find an alternate place to manufacture, but it is at least worth looking instead of defaulting to China.

Offshoring to Asia still makes sense for high-volume, price-sensitive products where tariff costs won’t kill your margins. Vietnam and India offer alternatives to China with lower political risk, though supplier networks aren’t as mature.

Onshoring (manufacturing in your target market) eliminates tariffs entirely but doubles or triples your manufacturing costs. It only works for premium products where U.S. customers will pay for “Made in USA” positioning.

The point is: run the math on total landed costs, not just manufacturing costs. A $10 Chinese product with 25% tariffs costs the same as a $12.50 Mexican product with zero tariffs, but the Mexican option ships faster and won’t cost as much in freight.

2. Design for tariff cost reduction.

The way you design and package your product can make a big difference in what you pay.

• Swap materials: Plastic housings might ship duty-free, while aluminum ones get taxed 15%.
• Ship parts separately: Send high-duty components (like electronics) apart from low-duty ones (like casings) and assemble at your fulfillment center.
• Check where parts come from: Products with enough local content (e.g. 60% from Mexico) can qualify for lower rates under trade agreements like USMCA.
• Deliver software digitally: Instead of loading it onto the hardware, let users download it. This might cut your duties.
• Use smaller boxes: Dimensional weight pricing means a 6x6x4 box can cost 40% more to ship than a tighter 4x4x3, even if both weigh the same.

It’s hard to provide highly specific advice since tariff rates vary so much between HS codes. But the point is: don’t be afraid to optimize what you use to make your products to reduce tariff costs.

3. Distribute inventory into different regions.

If you’re sending hundreds or thousands of rewards around the world, it’s often cheaper (and faster) to ship bulk inventory to local fulfillment centers in each region.

For example, you might send a pallet to the U.S. and another to the EU. This can reduce cross-border shipping costs, simplify customs paperwork, and speed up delivery times.

It also gives you a backup plan. If one region gets delayed, due to strikes, port slowdowns, or new import rules, you still have options elsewhere.

You don’t need to split inventory perfectly. Just look at where your backers are and plan accordingly. Even sending items to a Canadian warehouse can work out to be less expensive than shipping to a U.S. warehouse and then having them fill Canadian orders.

How To Keep Shipping & Fulfillment Costs Low

The difference between profitable fulfillment and hemorrhaging money comes down to three decisions: how you handle customs, who manages shipping, and where you store inventory.

If you want to do this well, here are three things you need to make a decision on:

1. Figure out who pays for customs: you or the customer.

With DDP (Delivered Duty Paid), you pay all duties and taxes upfront. It costs more—15–25% extra per shipment—but customers get smooth delivery with no surprise fees. Fewer complaints, fewer returns.

With DDU (Delivered Duty Unpaid), customers get hit with unexpected charges at the door. It looks cheaper on paper, but the support headaches usually aren’t worth it—especially for consumers.

DAP (Delivered at Place) is the middle ground. You cover shipping; they pay taxes on arrival. It works OK for high-ticket items, less so for everyday products.

For anything under $200, DDP usually saves you money in the long run.

2. Choose the right 3PLs.

The right logistics partners can make shipping your Kickstarter rewards a lot less stressful. They know how to handle customs, often offer better shipping rates, and can take care of the more complicated steps so you don’t have to.

Look for providers that automate customs forms, help with VAT and tax setup, and double-check your HS codes before you ship. Bonus if they can process returns and connect directly to your pledge manager or eCommerce setup.

You might work with one 3PL or several—either way, compare how each one charges. Some use per-shipment pricing, others charge monthly or take a percentage of order value. Run a few test scenarios to see what fits your campaign best.

Make sure any 3PLs you choose to work with know how to handle Kickstarter campaigns. Not all are equipped to handle the massive order volume that comes along with crowdfunding campaigns.

And one more thing: a great EU or UK based fulfillment center can make it far easier to comply with European regulations, particularly around VAT & EORI. Keep this in mind when you choose partners.

3. Decide how to split inventory across regions.

Shipping from one location works, up until it doesn’t. If most of your orders are headed to the U.S., EU, or Australia, storing inventory in those regions can cut shipping costs and delivery times.

A rough breakdown that fits many campaigns: 50% U.S., 35% EU, 15% AU. But adjust based on where your backers are actually located.

Local fulfillment can reduce shipping costs massively and eliminate customs hassles for most orders. If you’re sending 500+ units to a region, it probably makes financial sense to have some inventory locally.

That said, don’t try this on your first campaign unless you have sufficient order volume. Start simple and go regional only when your volume justifies the added complexity.

How To Mitigate Risks Around Tariff Changes

U.S. tariff rates have changed 18 times in the year 2025 as of mid-August. Kickstarter campaigns, by way of comparison, take about a year to go from funded to fulfilled.

That means you have a good chance of launching your campaign when the tariff rates say one thing, and fulfilling it when they say another.

The most business-savvy creators plan for different scenarios to make sure they come out on top even if the tariff rates change.

Here’s a hypothetical showing how a thoughtful campaigner like you could be ready for three wildly different future worlds.

World A: Tariffs Hold Steady

As a baseline scenario, you assumed tariff rates remain stable throughout manufacturing and fulfillment. So you priced your campaign based on today’s rates plus a 5-10% buffer for normal cost fluctuations like fuel surcharges on shipping and normal annual rate hikes by UPS, FedEx, and others.

In this scenario, you kept an eye on trade news, but they didn’t change much. You paid attention to speculation, but you didn’t take it too seriously. You knew that most tariff changes take 60-90 days to implement, so you had a backup plan in mind for manufacturers or suppliers if you needed it—and you didn’t, thank goodness. You stayed focused on execution rather than recalculating costs based on political headlines.

All the same, you built your campaign timeline with enough buffer to absorb normal delays. You knew that if tariffs stayed stable but your supplier faced a two-week delay, that extra little bit of operational flexibility would have helped you keep your promises without forking over tons of money for expediting shipping. But in this scenario, you ended up making a pretty penny in the end and backers still got what they wanted on-time and for a good price.

World B: Tariffs Increase Moderately

You knew it was possible that tariffs could go up, but not by enough to sink you. So you had a contingency plan that allowed you to absorb 25% tariff increases while still leaving your business profitable.

You took comfort in knowing that you’ve considered alternative sourcing regions. Thankfully, you already researched suppliers in Mexico, Vietnam, and Eastern Europe. If you needed them, you would have been able to manufacture your product there instead of China. Ultimately, you never needed your backup manufacturer, and you ended up making them in China and paying the extra cost.

You also find yourself glad you padded fulfillment estimates a bit too. The extra cash lets you cover the moderate tariff increases without emergency fundraising. You didn’t take home quite as much as you hoped, but you still made a modest profit and avoided being liable for expenses you couldn’t cover.

World C: Tariffs Spike Massively

It was worse than you thought. Tariffs went up by 50% on China, and you couldn’t absorb it. It was pretty bad in Vietnam and Mexico too, meaning your backup suppliers weren’t cost-effective either. So you ended up going with China anyway.

You ended up splitting your inventory and sending part of it to 3PLs in Europe, Australia, southeast Asia, and the U.S. So you only ended up having to pay tariffs on the portion that went to the U.S.

Splitting your inventory between all these locations did drive up freight and fulfillment fees a bit, but the math worked out in your favor compared to U.S. tariffs.

Your U.S. backers, thankfully, had access to the news too, so when you collected shipping after the campaign, they were not shocked when they had to pay extra to cover tariffs. Other campaigns were doing it, too, so they blamed the government and not you. Your clear and straightforward communication helped here as well.

There are lots of ways to source and ship. Being flexible will help you take advantage of opportunities and avoid threats.

The thought experiment above shows that it’s possible to ship a campaign even in the face of serious tariff-related uncertainty. Having backup plans, particularly around how you handle manufacturing and inventory, can help you mitigate the worst of the surprises.

And as for truly unavoidable tariff charges, U.S. backers are well aware that changes are happening fast these days. So while some will grumble, most will appreciate that you’re doing your best. Still: you need to be proactive and transparent about how you plan to handle changes as they happen.

Pre-Launch Checklist & Templates

There is a lot of information above, so this checklist has been made to help you make sure the most important things get done. Use it to avoid common traps and expensive mistakes.

Pre-Launch Actions

Before you launch a campaign, here are a few things you can do to reduce your risks.

• Research and confirm HS codes
• Get tariff rate quotes from freight forwarders
• Calculate landed costs for US, EU, & other major markets
• Identify backup suppliers in different countries
• Reach out to international 3PL providers
• Draft backer communication templates for shipping updates and potential delays

Live Campaign Actions

While your campaign is running, here is what you need to do to stay on track.

• Monitor trade policy news for tariff changes affecting your products
• Update shipping cost calculations if trade policies change
• Communicate any shipping timeline changes to backers within 48 hours
• Track actual pledge patterns and adjust inventory planning

Post-Campaign Actions

• Confirm final HS codes and tariff rates before placing manufacturing orders
• Finalize your choice of freight broker
• Provide backers updates every 2–3 weeks

Additional Resources

• Harmonized Tariff Schedule Database for HS code lookups
• SimplyDuty for tariff calculations
• CBP CROSS Rulings for binding US tariff rulings
• EU TARIC Database for VAT and duty rates in Europe
• Freightos for freight cost estimates
• ThomasNet for finding manufacturers

FAQ

Why is shipping harder for Kickstarter creators in 2025?

Because three things changed at once: tariffs are more common, the U.S. ended the de minimis $800 exemption, and Europe/UK tightened VAT rules. Costs are higher, and compliance is more complicated.

What exactly are tariffs?

Tariffs are import taxes, charged based on your product’s HS code (a classification number) and country of origin. Rates vary widely, and small design changes can shift you into a different tariff category.

How do I figure out my HS code?

Check the Harmonized Tariff Schedule (HTS) in the U.S. or the EU TARIC database. A customs broker or your 3PL can confirm. Never guess, since misclassification can cause big delays and surprise fees.

What is a “landed cost”?

It’s the true total cost of your product: manufacturing + freight + tariffs/duties + VAT + brokerage + shipping supplies + last-mile postage. Landed cost determines whether your campaign will make or lose money.

How can I estimate tariffs before launch?

Use tools like SimplyDuty for quick estimates. Then confirm with a freight forwarder or customs broker before you set campaign prices.

Should I manufacture in China or look elsewhere?

It depends on your product. China is still cost-effective for some categories, but tariffs can wipe out savings. Nearshoring (Mexico, Eastern Europe) may reduce risk and speed up delivery. Always compare landed costs, not just unit prices.

What’s the best way to handle customs fees for backers?

Delivered Duty Paid (DDP) is usually the safest for consumer products under $200. You pay duties up front so backers aren’t surprised with bills on delivery. It costs more on paper but avoids angry emails and refunds.

Do I need to split inventory across regions?

If your backer base is global and you’re shipping thousands of units, it might make sense. Local 3PLs in the U.S., EU, or Australia can cut costs and speed up delivery.