Tariffs, pricing caps, and shrinking ad budgets are creating a tougher landscape for ecommerce selling and advertising.
Ecommerce in the U.S. is on a sharp upward trajectory, with revenue projected to grow by $498.2 billion between 2025 and 2029. Over 273 million Americans (or more than 80% of the population) are active e-commerce users, and that number is projected to climb by another 45 million by 2029.
But while the market size is expanding, so are the challenges. Selling online is no longer just about listing a product.
It’s about standing out in a saturated marketplace, speaking to the right audience, and now, navigating growing political and economic pressures. New tariffs from President Trump are raising costs for sellers and squeezing margins, making it harder for brands to stay competitive without a clear strategy.
Tariff tensions: online sellers brace for a tougher e-commerce landscape
Online sellers are sounding the alarm over new tariffs rolled out by the current administration. Discussions across eBay and Amazon forums reveal mixed feelings, with some optimistic about opportunities and others expecting sharp downturns.
A recent EcommerceBytes article captured these mixed reactions, showcasing a split between sellers who view that tariffs could boost domestic resale and those who fear consumer pullback and declining sales.
Opportunists see inventory advantage
Some eBay sellers are confident they’ll benefit. One seller with “a couple semi trailers full of unlisted, untariffed items” said they’re well-positioned. Another emphasized the appeal of used goods, predicting secondhand shopping may surge as new imports dwindle.
Pessimists expect recession-like conditions from tariffs for ecommerce
Others aren’t so sure. Worries about a shrinking consumer wallet were common. “Recessions and bear markets are never good for anybody,” one wrote. Sellers of non-essential items fear they’ll be the first to feel the squeeze.
Disbelief over demand for vintage goods
Not everyone is sold on the idea that tariffs will shift consumer habits. One skeptical seller asked, “Why would Americans go antiquing when they’ll have less money to spend?” The concern: higher prices may stall discretionary purchases altogether.
Buy low, sell smart to survive new tariffs
Some sellers are leaning into long-term strategy. “Find those deals and wait until the market is prime,” advised one eBay seller hunting vintage guitars. Their view: fear creates opportunities to buy under market value and hold.
Filling the supply chain gaps left by rising costs
Others see opportunity from the supply chain of in-demand parts, especially if mainstream products become too expensive. One seller plans to focus on used OEM car and appliance parts from one’s garage or refurbished in local shops.
Source of supplies and raw materials
While inventory and consumer behavior dominated the discussion, few sellers addressed rising costs in shipping and office supplies. And while some trusted U.S.-based suppliers, none confirmed whether those suppliers relied on overseas parts or packaging.
A warning on returns fraud
Tariffs may also spark another headache: returns fraud. Fulfillment consultant Matthew Hertz predicts more buyers will exploit return windows to get “new” items refunded with worn ones, especially as new product prices climb.
Tariffs trigger ad budget cuts for ecommerce sellers
Fresh data reveals growing anxiety among U.S. advertisers over the financial strain of new tariffs. According to this Marketing Brew article, a February 2025 survey by the Interactive Advertising Bureau (IAB) found that 94% of advertising decision-makers expressed concern about the tariffs impact on ad spending, with 45% indicating they plan to cut their budgets as a result.
An EMARKETER article spotlighted the report’s insights, emphasizing that the IAB’s findings highlight how economic policy changes are rippling across digital platforms.
Among advertisers planning cuts, 41% will reduce spending on social media campaigns. Meanwhile, 24% say they’ll scale back on linear TV and gaming ads.
With rising costs driven by tariffs, advertisers must rethink their messaging and placement. Industry leaders anticipate a shift toward emphasizing value, affordability, and American-made products.
As budgets tighten, marketers will likely lean into storytelling that appeals to economic sensitivity. Locally sourced goods and long-term value may become central themes.
State of ecommerce selling and advertising in 2025
The e-commerce advertising landscape in 2025 is set to face new hurdles, driven by both the growing complexity of digital marketing and the looming effects of tariff increases. According to a DesignRush article, which features insights into the challenges and potential solutions for ecommerce sellers, advertisers are already reevaluating their strategies as new tariffs compound existing uncertainties.
Brands (must) prioritize long-term profitability over vanity metrics
In 2025, advertisers are moving away from short-term performance indicators like Return on Advertising Spend (ROAS) and focusing more on long-term profitability. With tightening margins and increased competition, companies are increasingly looking at metrics like incrementality and contribution margins to gauge success.
Shifting focus to new user acquisition
As brands face more pressure to grow, many are emphasizing the acquisition of cold audiences rather than overspending on warm audiences. Targeting new customers through smarter data collection and better tracking tools is becoming a priority for ecommerce businesses looking to expand their reach efficiently.
Expansion to new advertising platforms
Traditional advertising platforms are becoming increasingly saturated, prompting brands to explore alternative ad spaces. Platforms such as Reddit, Snapchat, and Twitter are gaining traction as advertisers search for fresh, untapped audiences with less competition.
The role of advanced tools in ecommerce advertising
With competition rising and digital media becoming more complex, brands are leveraging advanced tools to stay ahead. From AI-powered creative tools to Marketing Mix Modeling (MMM), these technologies help e-commerce companies optimize campaigns, increase efficiency, and drive long-term growth.
Pressure to spend smarter
The ongoing market uncertainty, particularly from political and tariff-related pressures, means brands must be smarter with their marketing budgets. As advertising costs rise, efficient allocation and smarter targeting will be key to maintaining growth and profitability.
Strategic adjustments for 2025 and beyond
In 2025, e-commerce sellers must rethink their marketing strategies to stay ahead of the competition. Key adjustments include:
Audience-first creative
Network Advertising Initiative"87 percent of consumers report being more likely to engage with ads that align with their interests."
Design ads with the target audience as the primary focus, rather than centering on the product itself. Tailoring messaging to specific customer segments will boost engagement and ad performance.
Reliable customer segmentation
Design ads with the target audience as the primary focus, rather than centering on the product itself. Tailoring messaging to specific customer segments will boost engagement and ad performance.
Social shopping integration
GlobalNewswire"49% of consumers think purchasing via social media is a quick and easy way to keep up with trends."
Take advantage of platforms like Meta and TikTok Shops to streamline the purchasing process and increase conversion rates. Social commerce is becoming a critical piece of the digital shopping experience.
Explore Amazon DSP
For sellers struggling with traditional Amazon PPC ads, Amazon DSP (Demand Side Platform) offers an additional strategy. It enables you to reach potential customers outside of Amazon and direct them to your product listings.
You can manage campaigns independently or partner with an Amazon agency to oversee everything from launch to monitoring, ensuring a targeted and efficient approach to attracting new shoppers.
Competitor targeting
Don’t overlook the power of competitor research. Identify direct competitors and target their customers with relevant ads. Many sellers fail to leverage this, either due to a misguided belief that their products are too unique or because they fear competitors will retaliate.
In reality, competitors will likely target you anyway, so it’s better to proactively engage with their audience and drive traffic to your products. Make sure you choose competitors who truly align with your product offering to maximize the relevance and effectiveness of your ads.
