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AMZN, EBAY, CPNG: Online Shopping Sees Biggest Slowdown in a Decade as Tariffs Hit

AMZN, EBAY, CPNG: Online Shopping Sees Biggest Slowdown in a Decade as Tariffs Hit

A new survey has found that online shopping is experiencing its biggest slowdown in more than a decade as tariffs impact the e-commerce sector.

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The finding is bad news for leading e-commerce companies such as Amazon (AMZN), eBay (EBAY), and Coupang (CPNG), among many others. The survey from privately held Alix Partners concludes that e-commerce is experiencing its most disruptive period in more than 10 years as online shopping activity nosedives due to U.S. President Donald Trump’s tariff policies.

According to the survey, online purchases for home delivery experienced double-digit percentage, year-over-year declines across major categories, including office supplies, sporting goods, home furnishings, and large electronics, each of which has fallen by 10 percentage points or more. Groceries ordered online for delivery was a notable exception to the negative trend, said Alix Partners.

‘Widespread Pullback’

“This marks the first widespread pullback in online category growth in over a decade,” said Alix Partners, a consulting firm, in a news release. Tariffs are blamed for the decline, with 34% of consumers saying they delayed purchases due to uncertainty over prices, and 66% saying they will seek domestic options if overseas prices increase by 10% or more.

Twenty-eight per cent (28%) of consumers said they pulled ahead purchases earlier in the year to avoid extra import costs caused by President Trump’s tariffs. At the same time, the survey found only a minority (20%) of consumers are now actively looking to “Buy American” because of the tariffs. The online survey was conducted by Alix Partners between May 31 and June 3 of this year.

Is AMZN Stock a Buy?

AMZN stock has a consensus Strong Buy rating among 48 Wall Street analysts. That rating is based on 47 Buy and one Hold recommendations assigned in the last three months. The average Amazon price target of $242.98 implies 10.75% upside from current levels.

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