More than half of U.S. small business online retailers have already made significant operational changes in response to tariffs, and many are passing higher costs directly to shoppers, according to new research from Omnisend.
In a survey of 170 small e-commerce owners, 54% said tariffs had materially impacted their business. Among them, 39% raised retail prices, 29% shifted suppliers and 19% reduced their product assortment.
Of the retailers that increased prices, the majority implemented substantial hikes:
- 27% raised prices up to 5%
- 52% raised prices 5%–10%
- Nearly 20% raised prices more than 10%
With import and operating costs climbing, many small merchants lack the margins to absorb further pressure, Omnisend noted.
“What we’re seeing here is the reality of doing business in 2025,” said Marty Bauer, e-commerce expert at Omnisend. “Tariffs are coming on top of already higher costs for shipping, labor, and marketing, and most online retailers don’t have the same cushion big-box chains do.
“When your margins are thin, even a small increase in costs forces tough choices, and that shows up as higher price tags, fewer ‘free shipping’ offers, and certain products quietly disappearing from the site.”
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The survey also asked how respondents would handle a sudden 10% jump in costs, such as a new tariff round or a major supply-chain disruption. Most said they would pass the increase straight through to customers:
- 46% would raise retail prices
- 16% would add or increase shipping fees
- 16% would cut discounts
- 10% would reduce product variety
- Only 5% would consider reducing headcount
In total, 78% would make shopping more expensive before turning to layoffs or deep operational cuts.
“When prices keep moving, shoppers change how they buy,” Bauer said. “Shoppers become more price-sensitive and switch to whoever offers the best value at that moment.
“That puts smaller retailers in a tough spot — they have to raise prices to stay alive, but every increase makes it harder to keep customers in a very competitive market.”
The findings are based on a November 2025 online survey of 170 U.S. e-commerce owners and employees at businesses ranging from fewer than 50 to up to 100 employees.
Respondents were asked how tariffs have affected their operations, what adjustments they’ve made, and how they would respond to a hypothetical 10% cost increase.
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