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BuckheadFunds > Startups > Buy Now or Pay More Later? ‘Macroeconomic Uncertainty’ Has Shoppers Anxious

Buy Now or Pay More Later? ‘Macroeconomic Uncertainty’ Has Shoppers Anxious

News Room By News Room May 14, 2025 5 Min Read
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Buying something before you absolutely need it isn’t always affordable. But if there were ever a time to consider making an early investment, this would be it. President Donald Trump’s tariffs are beginning to nudge prices higher on products from high-end strollers to cheap smartphone chargers.

The Trump administration has suggested the tariffs are a negotiating tactic. Some could be eliminated as the US makes deals with other countries. That means US shoppers willing to wait out the current chaos could end up getting a better deal.

I have been wondering what to do here myself. As a new dad, my family will need a new car seat early next year, and these plastic buckets, which generally must be bought new, don’t come cheap—even under normal circumstances. For clues on how to navigate the dilemma of buying now or later, I have been collecting thoughts from experts in the online shopping industry.

One of the first lessons I learned doing this research was that if I decided to buy in advance, I wouldn’t be alone. “To some extent, we’ve seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact,” Amazon CEO Andy Jassy said on an earnings call last week. eBay also said it saw signs of what could be prebuying, though it didn’t specify which products people are stocking up on.

On the other hand, there are hints that most consumers have been holding out for now. This time of year tends to be relatively quiet for sales of iPhones and other Apple products, and that’s been true to date in 2025, CEO Tim Cook said on the company’s earning call last week. Mastercard’s earning comments also said that shoppers were spending the expected amount. And Etsy even saw a drop in the total value of merchandise sold as customers held back on gifts and trinkets.

So if other consumers are a guide, I could go either way with my car seat purchase. What about prices? As the impact of tariffs started to hit last week, Amazon’s Jassy said that prices on the platform hadn’t surged “appreciably” so far. He added that Amazon was “maniacally focused” on keeping prices down. It helps that Amazon has a global network of competing suppliers and merchants. For example, if one seller raises prices, another may hold theirs steady to gain market share, Jassy said. “Customers are going to have a better chance of finding variety on selection and on lower prices when they come here,” he added.

Jassy didn’t touch on illicit tactics, including tariff evasion, that could keep the prices of imported products artificially low. But several ecommerce strategists who help companies sell products on Amazon tell WIRED that factories and distributors in Asia are admitting to new attempts to skirt tariffs, including by underdeclaring the value of shipments to US customs officials. “It’s always been an unfair playing field, and now they are pushing the envelope even more,” says Dave Bryant, cofounder of EcomCrew.

Amazon spokesperson Jessica Martin says sellers “are required to follow all applicable laws and regulations when importing items for sale.”

The government losing out on tariff revenue isn’t great, but name a shopper that’s going to fret at the trade-off of more affordable prices, Bryant says. He and other strategists agree with Jassy that competitive items—think household goods or generic party favors—are unlikely to skyrocket in price on Amazon. More boutique offerings, though, could grow more expensive because of tariffs.

Read the full article here

News Room May 14, 2025 May 14, 2025
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