Tariffs Force Online Retailers to Raise Prices as Costs Increase

Tariffs Affecting Online Retailers: Survey Findings



A recent survey conducted by Omnisend among 170 U.S.-based eCommerce business owners has revealed alarming statistics regarding the impact of tariffs on the online retail landscape. The study shows that 54% of online retailers have had to make significant operational changes directly attributed to rising tariffs. This finding is a red flag for the eCommerce sector, indicating that smaller businesses are feeling the strain more than their larger counterparts.

Key Findings of the Survey



Out of the retailers surveyed, 39% reported that they have increased their retail prices. Here's a closer look at the price adjustments made by these retailers:
  • - 27% raised prices by up to 5%
  • - 52% raised prices by 5-10%
  • - About 20% raised prices by more than 10%

Currently, the increase in import costs has left many eCommerce businesses in a position where they cannot absorb these rising expenses. Consequently, they have had to adjust their pricing, find new suppliers, or reduce their offerings to maintain profit margins.

“What we're seeing here is the reality of doing business in 2025,” stated Marty Bauer, an eCommerce expert at Omnisend. “Tariffs are compounding against already rising costs for shipping, labor, and marketing, catching retailers in a vice grip.” This has put many companies in a not-so-enviable position, especially since they don’t have the comfort of larger retail giants who can better withstand financial fluctuations.


Anticipated Shopper Reactions to Cost Increases



Additionally, the survey examined what retailers might do if there were another 10% increase in costs, which could arise from new tariffs or major supply chain disruptions. The responses illustrated a stark reality:
  • - 46% would respond by raising product prices
  • - 16% would increase shipping fees
  • - 16% would cut back on discounts
  • - 10% would reduce the variety of products offered
  • - Only 5% would consider cutting staff

In total, about 78% of retailers indicated they would prefer to pass costs directly to consumers rather than drastically alter their operations or workforce, emphasizing the fragile state of online retail today.

Shoppers Adjust Behavior with Rising Prices



The implications are significant for consumers as well. When prices begin to fluctuate continuously, customers tend to become more price-sensitive, making choices based on value rather than brand loyalty. Bauer notes, “When prices keep moving, shoppers change how they buy. They search for the best value, putting smaller retailers at a competitive disadvantage.” As small businesses find necessity in raising prices to survive, the risk of losing customers becomes a tangible threat.

Conclusion and Future Outlook



In conclusion, the data presented by Omnisend not only showcases the immediate challenges faced by online retailers due to tariffs but also underlines an ongoing trend that could reshape consumer behavior and retailer strategies in the coming months. As eCommerce continues to evolve amidst increasing operational costs, retailers are urged to be adaptable. Retailers may find the key to survival lies in balancing price adjustments, customer loyalty, and innovative supply chain management.

The full methodology of the study involved an online survey of 170 eCommerce business owners and employees in November 2025. Respondents were carefully chosen from companies ranging in size from small firms with fewer than 50 employees to mid-sized businesses with up to 100 employees. Data referenced remains pivotal in highlighting the evolving terrain of eCommerce dynamics amid increasing tariff pressures.

Topics Consumer Products & Retail)

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