{"id":30092,"date":"2025-07-01T14:45:14","date_gmt":"2025-07-01T14:45:14","guid":{"rendered":"https:\/\/www.europesays.com\/us\/30092\/"},"modified":"2025-07-01T14:45:14","modified_gmt":"2025-07-01T14:45:14","slug":"online-retail-sees-biggest-slowdown-in-decade-tariffs-hit-e-commerce","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/30092\/","title":{"rendered":"Online retail sees biggest slowdown in decade, tariffs hit e-commerce"},"content":{"rendered":"

Packages ride on a conveyor belt during Cyber Monday at an Amazon fulfillment center on December 2, 2024 in Orlando, Florida.<\/p>\n

Miguel J. Rodriguez Carrillo | Getty Images<\/p>\n

The e-commerce sector is experiencing its most disruptive period in more than a decade as a result of President Trump’s trade war and tariffs policy, according to a new survey from Alix Partners. It finds steep declines in online shopping activity, and shipping and return policies being adjusted to cut costs for companies.<\/p>\n

Online purchases for home delivery experienced double-digit percentage, year-over-year declines across major categories, including office supplies, down by 13 percentage points; sporting goods, down 12 percentage points; and cosmetics, furniture, home furnishings, and large electronics, each falling by 10 percentage points, according to AlixPartners’ data.<\/p>\n

“This marks the first widespread pullback in online category growth in over a decade,” said Chris Considine, partner with the consulting firm’s retail practice.<\/p>\n

Grocery was a notable exceptions to the negative trend.<\/p>\n

Tariffs have been a catalyst for consumers to change their buying behavior, according to the AlixPartners data, which finds 34% of consumers saying they delayed purchases due to uncertainty over prices, and 66% saying they will seek domestic options if overseas prices increase by 10%. Twenty-eight percent of consumer survey respondents said they pulled ahead purchases to avoid extra import costs.<\/p>\n

The survey showed a sizeable minority (20%) looking to “Buy American.”<\/p>\n

“Tariffs are materially influencing consumer behavior, leading to both timing shifts and a potential reshoring of demand. Retailers may need to reassess sourcing and pricing strategies to remain competitive,” Considine said.<\/p>\n

The online home delivery survey was conducted by AlixPartners between May 31 and June 3 among consumers, retail and transportation companies.<\/p>\n

In addition to the tariffs impacting purchases, retailers are battling challenges with the cost of returns<\/a> and delivery. The survey shows a rise in the proportion of orders being returned, at a time when almost three-quarters of executives said per-package delivery costs have increased.<\/p>\n

Delivery and return policies are being tightened across the e-commerce sector, according to the survey, with greater emphasis on in-store pick up and returns. Consumer behavior remains heavily influenced by free shipping and next-day delivery, but almost half of retailers surveyed have increased the minimum order requirement to qualify for free shipping, or now require a membership.<\/p>\n

Most e-commerce executives surveyed by AlixPartners said cutting last-mile delivery costs was a priority over service improvements.<\/p>\n

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