Buyer’s Remorse: E-commerce Sees Largest Slump In More Than A Decade

For galore American shoppers, nan costs of convenience afforded by e-commerce platforms could beryllium getting conscionable a small excessively costly. According to a caller survey, online unit income saw their biggest wide diminution successful much than a decade, mostly driven by nan Trump administration’s tariff policies.

The survey, conducted by consulting patient AlixPartners, took nan somesthesia of 1,100 big U.S. consumers crossed generations and income brackets, arsenic good arsenic unit and proscription executives betwixt precocious May and early June.

The weight of tariffs

What they recovered is that much than one-third of respondents (37%) said President Donald Trump’s tariffs are influencing their online shopping habits. More specifically, 34% said they had delayed a acquisition owed to uncertainty complete prices, while 28% said they purchased thing sooner to debar other import costs.

Perhaps existent to Trump’s goal, however, 66% besides said they will activity home options if overseas prices increase, and 20% are looking to “buy American.”

“Elevated user consciousness of tariffs is intelligibly flowing done into buying decisions,” Chris Considine, a partner successful AlixPartners’ unit practice, said. “You tin spot really group are timing their purchases and nan conscious effort among a sizeable number to ‘Buy American.’”

Largest wide diminution successful much than a decade

In nan short term, though, retailers crossed industries are emotion nan squeeze. Between 2024 and 2025, e-commerce saw its largest year-over-year slump since AlixPartners started conducting its study successful 2012.

Office and location agency supplies were nan hardest hit, experiencing a 14% diminution successful sales. Next successful statement is sporting equipment astatine 12%, followed by cosmetics, furniture, location furnishings and ample electronics, which each declined by 10% each.

The only industries to travel retired unscathed were groceries, which saw nary year-over-year change, and car parts, which only dipped 2%.

The existent costs of fast, free shipping

For retailers, nan financial symptom of less income is exacerbated by a rising request for some fast, free shipping and historically lax return policies.

According to AlixPartners, 77% of study respondents said that free shipping “greatly impacts” their purchasing decisions. But astatine nan aforesaid time, astir 75% of shipping executives said per-package transportation costs person gone up complete nan past year.

As a result, much retailers are attempting to curb nan number of free deliveries they’re required to nonstop retired done measures specified arsenic higher minimum acquisition orders, memberships and stricter return policies.

“Shippers, carriers, consumers –– they’re each emotion nan effects of geopolitical unrest, spiking lipid prices, economical uncertainty and waste and acquisition turmoil,” AlixPartners wrote successful its report. “Consumer assurance is down –– and truthful are user self-reported bid volumes, crossed nan board.”