In their own words: How inflation is impacting buyer behavior in 2025
Has your ecommerce brand raised prices on consumer items in response to new tariff-related costs? If so, you’re far from alone: About three-quarters of businesses surveyed said that they had raised prices on their goods or services in response to increased tariff rates.
In some cases, those price hikes can be substantial. Joseph Rosenblatt, founder of PepperMate, a brand known for high-quality pepper grinders and spice blends, says that his brand has increased prices twice in line with high supply chain costs: “I've raised prices significantly on PepperMate grinders this year - from $24.99 to $34.99 for our core models in March, then again to $39.99 in August. That's nearly a 60% increase over 8 months.”
How customer behavior is shifting
So how are consumers responding to increased prices, and what can you do to ensure your brand stays a competitive option? We talked with merchants to learn more. Here’s what they said:
Sales cycles are getting longer
Rosenblatt says that in light of the price increases, “the most striking change was customers started treating our pepper mills like kitchen appliances, rather than impulse purchases.” He found that the average time between first website visit and purchase had jumped from three to 11 days, with customers asking more questions about the warranty and product quality before committing to a purchase.
Ben Kuhl, the owner of Shelf Expression, a custom shelving company, has had a similar experience The brand has a showroom in Charlotte, North Carolina, and Kuhl says that for customers who’ve made a visit, “our sales cycle has stretched from 2-3 site visits to 4–6, with more customers requesting discounts. Our shelves are high-ticket, premium pieces typically bought by top 20% earners, yet even they are now more price-conscious and research-driven.”
Fewer new customers, but no drop in repeats
An increased price tag may serve as a deterrent to new customers: After raising the prices of some of their puzzle products by 10%, Alfred Christ, sales manager at ROCKR, said that new sales conversion dropped by around 6% over the following two months. However, he says, “our returning customers, who know the durability and artistry of our puzzles, continued buying at nearly the same pace.”
Shoppers are seeking value
However, both new and returning customers are looking for ways to get more out of their dollars. That includes waiting for promotions, choosing discounted bundles, or switching to cheaper products to help them maximize the impact of their spending.
“The most common trend I've seen with consumer purchases is that the price increase may encourage them to switch to a less expensive version of the product rather than prevent them from making a purchase,” says Lou Haverty, owner of the ecommerce business Tank Retailer, which sells to both businesses and consumers.
At ROCKR, “we also noticed a small shift toward customers taking advantage of seasonal sales, such as our Summer Creativity Event, or bundling multiple kits to maximize value,” adds Christ.
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Save your spotTips for staying competitive
As our merchant stories illustrate, customers are curbing their spending as costs increase. But by putting a plan in place to deliver an optimal customer experience at every stage of the buying cycle, you’ll be able to retain your shoppers for the long term, and build a sustainable business.
To do that effectively:
- Build a great returns policy: By leveraging Loop’s returns management tools, you can build a seamless returns experience that will help your customers feel more comfortable about making a purchase they may be on the fence about. Our self-service returns portal provides a hassle-free experience for customers, whether they’re requesting a refund or seeking an exchange. They can even take advantage of multiple return options including in-store drop-off and mail-in returns, making the ecommerce logistics experience as convenient as possible.
- Showcase products at lower price points: When shoppers are more concerned with spending, they’re more likely to choose affordable alternatives to their preferred products. Rather than risk them bouncing from your site, provide recommendations for more basic alternatives to your premium products, which may lack some of the features of the original product but be available for significantly less.
- Offer value bundle discounts: Encourage shoppers to increase their AOV by incentivizing purchases beyond a certain price threshold, or offering deals on specific product bundles. For example, by offering free shipping on all purchases above $50, you’ll be able to encourage shoppers to add more items to their cart to hit that goal.
- Communicate consistently: To keep your customers engaged, it’s important to stay in regular contact with them – both before and after the sale. Use email and SMS marketing to promote special campaigns and discounts, including personalized offers based on items the shopper has viewed or purchased in the past. Once they make a purchase, provide ongoing communication around order confirmation and delivery estimates, ensuring that the shopper has access to current shipping data with real-time orders and returns tracking updates.
Costs may be creeping up, but by creating a welcoming environment for your customers, you’ll be able to stay the course and build loyalty at every turn.
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