Online commerce is experiencing an unprecedented slowdown. This phenomenon is largely due to tariff policies, notably inspired by former President Trump’s trade initiatives. According to a recent survey by Alix Partners, online shopping activity has declined significantly, forcing companies to review their delivery and return policies to limit costs. Hardly affected sectors include office supplies, sporting goods, and consumer goods such as cosmetics and large electronics. While e-commerce had been experiencing continuous growth, this decline is the first observed in more than a decade and is forcing industry players to quickly adapt to the new business reality.
The causes behind the slowdown in e-commerce
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The causes of this decline in the e-commerce sector are complex and interconnected. One of the main factors identified is the trade war triggered by tariffs. These tariffs have caused growing economic uncertainty, forcing many consumers to postpone purchases, as AlixPartners’ survey shows. Approximately 34% of consumers choose to delay purchases due to price fluctuations. This trend translates into an increased willingness to buy local products if the prices of imported products increase by 10% or more. Discover how e-commerce is facing its biggest slowdown in over a decade, with an in-depth look at the tariffs disrupting e-commerce and impacting sellers and consumers. Impact on different sectors Various sectors are feeling the impact of this slowdown. For example, office supplies and sporting goods are seeing significant sales declines, of 13% and 12% respectively. These declines are particularly pronounced in the cosmetics, furniture, home goods, and bulky electronics categories. E-retailers such as Amazon, La Redoute, and Boulanger are feeling this pressure—a first for online retailers in a decade. Category
Office Supplies
13% Sporting Goods 12% Cosmetics10%
| Furniture | 10% |
|---|---|
| Bulk Electronics | 10% |
| Furthermore, delivery and return costs are increasing, with a rising proportion of returned orders. This trend is forcing retailers to adjust their business strategies and reduce their operational costs where possible. https://www.youtube.com/watch?v=rjFd_pBxHRY | Consumer Reactions to These Changes |
| Consumer reactions to tariff increases and supply chain slowdowns are mixed. While some are postponing purchases or turning to domestic options, others are choosing to maintain their usual shopping habits. Approximately 20% of respondents express a growing preference for “Made in America” products. This phenomenon, often referred to as reshoring, reflects a consumer desire to support the local economy, leading to a shift away from traditional shopping channels. | Discover how e-commerce is facing its biggest slowdown in over a decade, disrupted by rising tariffs. This in-depth survey examines the impacts on e-commerce and the challenges businesses face. |
| The Impact of Return and Delivery Policies | Return and delivery policies are also evolving. Companies like Cdiscount and Sephora are adapting their offerings, increasing the threshold for free delivery or introducing subscriptions. These changes aim to offset the rising costs of the “final stretch” of delivery. At the same time, |
| 66% | of consumers say they are willing to seek domestic alternatives if import prices become prohibitive. |
Increasing thresholds for free delivery
Emphasizing in-store pickup to reduce costs
Challenges for online retailers The e-commerce landscape is constantly evolving, forcing retailers like Fnac, Vente-privee, and Zalando to innovate. Rising tariffs are forcing them to reconsider their sourcing and pricing strategies. Faced with the pressure of a changing market, they must readjust their priorities to remain competitive. One of the major challenges is reducing delivery costs without sacrificing customer service quality. This strengthens intraregional and local solutions such as AliExpress or Showroomprive. https://www.youtube.com/watch?v=YlJkB2vl8o0
Retailers are exploring various strategies to overcome these challenges. There is a trend toward strengthening local partners, for example, through collaborations with brands that manufacture locally, thus facilitating better inventory management and delivery times. Similarly, adaptations to logistics platforms allow for the optimization of internal processes, resulting in a reduction of excessive return costs.
Stimulating national collaborations Optimizing logistics tools Reducing unnecessary returns
- The future of e-commerce by 2025
- 2025 is shaping up to be a pivotal year for e-commerce, forcing market players to learn from recent upheavals. The emergence of new consumer trends, often influenced by global economic policies, requires significant adjustments. To continue to thrive, giants like Amazon must rethink their retail strategy and adopt a more flexible approach to demand and supply.
- A thorough analysis of market trends suggests that sustainability is becoming increasingly central to purchasing decisions. Concern for the environment, coupled with changing consumer preferences, means companies must remain vigilant to green expectations. Year
Revenue (in billions)
Trend
175.3
Increase
- 2024
- 192.5
- Stable
2025
168.0
Decrease
| Looking ahead, experts predict that current trends will continue to influence the sector due to business resilience and growing consumer commitment to sustainability and technological innovation. | ||
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