ESW Survey Finds that Consumers Want Brands to Offer Free Shipping, Loyalty Rewards, and Clear Communication on Price Increases in Exchange for Tariff Surge Pricing

Six in ten U.S. consumers will not absorb more than a 10% increase in pricing due to tariffs, according to new data from ESW, the worldwide leader in ecommerce. The survey, “Impact of Tariffs on Purchasing Decisions,” also reveals that, aside from discounts or promo codes, consumers want free shipping, loyalty rewards, and transparent communication about price increases in exchange for higher tariff-induced costs.

“Market volatility and increased costs due to tariffs are causing U.S. shoppers to change their spending habits,” said Eric Eichmann, Chief Executive Officer, ESW. “Our data finds that younger, Gen Z consumers are far more likely than older Boomers to feel unprepared for price hikes, and have already curtailed their spending in anticipation.

As global retailers and brands strategize to offset these new developments, they must prepare to offer more perceived value, price transparency, and flexibility in order to retain brand equity and loyalty.”

Other key findings include:

• Most consumers will reduce spending once tariffs take effect: 70% of all consumers say that they will reduce overall spending once tariffs go into effect. Millennials top the list of those planning spending cutbacks, with 78% indicating a reduction. At 54%, Boomers are the most likely generation to stop buying certain imported goods.
• Gen Z is spending now to save later: 58% of Gen Z shoppers have pulled forward their purchases of high priced items such as iPhones, computers, and champagne in advance of potential tariff increases. Overall, 45% of consumers have pulled forward spending on electronics and 37% are stocking up on groceries.
• Discretionary items will be hit hardest: 68% of consumers plan to cut back on electronics because of tariff increases, 61% are reducing purchases of apparel and accessories, and 51% will spend less on home goods.
• Pet supplies remain a high priority: 33% of consumers will continue to pay for pet supplies regardless of tariff increases, second only to groceries.
• BNPL favored by Millennials in exchange for surge pricing: Millennial consumers are 36% more likely than other generations to prefer that brands offer buy now, pay later options, even if it means paying higher prices.

The U.S. findings mirror global shifts revealed in ESW’s broader Global Voices Survey of more than 18,000 respondents across 18 countries, which finds:

• Consumers perceive online shopping as less expensive than shopping in-store: Of those spending more online this year, nearly 40% say they feel shopping online is less expensive than shopping in-store. Nearly 49% of shoppers who will spend more, plan to do so because there are more purchase options online.
• Luxury brands benefit from global shoppers: Brands and retailers that are available to international shoppers continue to reap rewards, which is driven by a convergence of technological advancements, economic dynamics, broader product selections, and changing consumer behaviors. Twenty-five percent of consumers who purchase luxury goods did so from outside their home countries, with 21.2% of consumers saying that they purchase from these brands–such as Burberry, Bulgari, or Dior–both domestically and internationally.
• Consumers are finding the same product less expensively internationally. Nearly 46% of online shoppers purchasing items outside their home country do so because the total cost, including taxes and shipping, was lower than prices for that item domestically.
• Shoppers will not spend more for sustainable products. Despite two-thirds of consumers admitting that they are trying to be more sustainable in their day-to-day lives, nearly 53% (52.9%) will not spend more for eco-friendly products. However, half (51%) of all consumers do say they consider the environmental impact of items when they are shopping, such as carbon emissions, dye water contamination, and microplastics. Furthermore, 54% of shoppers also consider ethical production when shopping, such as safe working conditions and fairly paid workers.
• Nearly one in three shoppers (32%) intends to spend less online in 2025: Of those shoppers planning to cut back, 58% cited saving money as the primary driver. Concern about the current economic climate was cited as the second highest reason for cutting back at 36%, with the high cost of essentials, such as food, ranked third (32%).

Methodology

The U.S. study, “Impact of Tariffs on Purchasing Decisions,” includes data from a nationally representative sample of 1,008 adult consumers collected in April 2025. The Global Voices survey included 18,448 participants across 18 countries, fielded between October 20 and November 1, 2024.

Go to ESW to learn more.

About ESW

ESW makes worldwide ecommerce powerful and simple. We offer the world’s best-loved brands solutions that reduce cross-border complexity and create moments that matter between them and their shoppers. We focus on localizing the online shopping experience to increase conversions and loyalty while also taking on the complications of doing business in international markets. We do it through frictionless checkouts, fast, reliable shipping and returns and by reducing compliance and regulatory risk. All while coming alongside our clients with market insights and strategies designed for long-term growth and profitability. ESW is the only cross-border commerce solution that is MACH certified.

With offices in New York, Dublin, Madrid and Singapore, ESW helps the world’s premier and most ambitious brands achieve growth and profitability in more than 200 global markets. That’s worldwide ecommerce made powerful, made simple.

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