E-Commerce Struggles Amidst the Weight of Trump Tariffs

The e-commerce scene in the U.S. has undergone significant shifts due to tariffs imposed during the Trump era. A recent survey by Alix Partners reveals that 34% of consumers are holding off on purchases until they feel more secure about the market.

This survey, which included responses from 1,000 American shoppers, indicates a notable drop in online buying across nearly all sectors—groceries being the sole exception—marking a first since this research began in 2012.Big-ticket items have also seen a downturn; online sales for categories like sports equipment, furniture, and large electronics have plummeted by double digits over the past year.

According to Alix Partners, “The impacts of geopolitical tensions, rising oil prices, economic instability, and trade disruptions are palpable for shippers and consumers alike.”

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Tariffs are top-of-mind for manny shoppers; around 30% reported making their online purchases sooner than intended within the last six months to avoid potential tariff hikes. Additionally, about 22% admitted to cutting back or postponing orders from overseas due to these concerns. Retailers aren’t immune either; among 100 executives surveyed by Alix Partners, a staggering 72% stated that e-commerce hasn’t been profitable lately while 76% noted an increase in delivery costs per package over the past year.

To tackle these rising expenses, retailers are diversifying their shipping options—40% have redirected some of their package volumes away from major carriers like FedEx or UPS recently. Furthermore, around 15% plan to introduce in-store pickup options as a strategy to minimize delivery fees. Notably, approximately 85% identified lowering overall order costs as their primary goal for last-mile delivery improvements.