The Demise of De Minimis Welcomed by Lighting Showrooms   

At face value, the end of the de minimis exemption affecting the shipment of goods valued under $800 did not seem as if it would have any effect on the lighting community. However, lighting showrooms and manufacturers have told Lighting News Now that the ruling – which went into effect on August 29 – has an upside.

“Ending de minimis removes a tariff loophole that rewarded non‑compliant parcel imports. It puts everyone back on fair footing, channels more volume through the vetted supply chain, and helps protect consumers from unsafe, counterfeit electrical goods. Net‑net, it’s healthy for the decorative lighting and ceiling fan category,” said Nathan Frampton, president of Fanimation.

When many hear of the de minimis exemption, they assume it only applies to online etailers such as Temu, Shein, and Alibaba — however, lighting showrooms say there are a whole host of overseas websites that offer lighting products direct to consumers at prices too low for them to price match.  

Noted Lori Huddleston-Morris, president and owner of Dunker Electric Supply in Decatur, Illinois, “We have lost sales to those sites. Customers come in with pictures of designs that we cannot find from a domestic company or for near a price that is advertised online at companies such as Mod Lighting and Amazon.”

Bob Warmbold, who operates two Accent Lighting showrooms in Oregon, added that he has lost sales due to customers buying knock-offs from online overseas sellers that are priced thousands of dollars less than the higher-end brands offered in his store.  In one example, he stated that while the customer had to wait longer for the fixture to arrive, the design looked very close to one he offers, although he mentioned there is no guarantee if the UL labels from these DTC purchases are legit.

“I know I have lost some [potential sales] because they thought they would buy the important pieces from me, but bought other pieces from some off-brand [seller] to ‘save money,’” said Kristine McKenna of Light Source Lighting in Plainfield, Illinois. “They ended up throwing away some of those other items due to missing parts, cheaply made, etc. So there was no money saved, and it cost them more frustration. Communication is key. We all know the game, and telling customers we know the game might save them time/money.”

Angela Mazy Fielden, co-owner of Simply Floors & Lighting in Gilmer, Texas, said the negative customer experiences from some online sellers has only bolstered her brick-and-mortar business.

“It feels like bad experiences – such as canceled or delayed orders and the unreliable pictures stolen from the real vendors – have driven a small percentage of internet customers to me,” she explained. “These are new opportunities with customers that were not originally showroom customers to begin with, but now [after a bad internet buying experience] they want to touch feel and hold to know what they are really getting,” she said. “Unreliable buying experiences have put a bad taste in their mouths and driven them to brick & mortar. The ones who are buying the good dupes are never going to buy from me to begin with, so I can’t view them as a lost sales opportunity.”

Lisa Brooke of Illuminations Lighting in Lincoln, Nebraska, has observed the same. “Most of our customers want quality and are pretty serious about supporting local business,” she said. “Sure, some who can’t afford us order from Amazon or wherever – and we may see them at some point because it didn’t work out like they thought – but that’s not really our clientele. A lot of our builders send their clients to us because they want quality products, and we have a lot of individuals as well — that’s who we’re here for.”

While the end to the de minimis exemption will not end the practice of customers bringing in screenshots of unbelievably low prices for what looks like similar products,  hopefully with the duty-free status eliminated, the price disparity will be reduced.