Price Outranks Loyalty: How Tariffs Are Reshaping Consumer Behavior

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How Smarter Returns Can Win in the Age of Tariffs

Retailers are entering a new era—one where economic headwinds like inflation and tariffs aren’t just background noise. They’re rewriting the playbook for customer retention, global fulfillment, and returns. As the recent eMarketer article "Keep It” Policies and Resale: How Tariffs Are Redefining Returns rightly points out, brands are under pressure to reimagine the post-purchase experience as a profit lever, not just a cost center.

Our team at ReturnBear sees this shift playing out in real time, supported by the latest data from Wunderkind’s 2025 U.S. Tariffs: Consumer Impact Survey.

Tariffs Have Officially Gone Mainstream

91% of U.S. consumers are aware of rising tariffs. That’s not just passive awareness—63% are very aware and already changing their shopping habits in response. The impact? Price sensitivity is spiking, and brand loyalty is crumbling. Just 46% of consumers say they’d stick with a brand, even with proactive communication about rising prices.

If you’re still treating tariffs like a logistics-side issue, you’re missing the bigger picture. This is a customer-facing concern—and a strategic marketing opportunity.

“Keep It” Isn’t a Long-Term Strategy. It’s a Stopgap.

Yes, many brands are adopting “keep it” return policies for low-value items, hoping to cut losses on reverse shipping and inspection. But that’s a short-term fix that erodes resale revenue and opens the door to fraud. Without return validation or item recovery, brands are essentially giving away product in exchange for nothing.

At ReturnBear, we’ve taken a different path: risk-free, fraud-proof return verification at the point of drop-off. Customers get their refund instantly. Brands get peace of mind. And because the item is received and inspected before any restocking or refund decisions, there’s no guesswork or blind loss.

Cross-Border Brands: Tariffs Are Costing You Twice

The eMarketer piece hits on a crucial point: as tariffs go up, the real killer is double taxation. Brands pay to import an item into the U.S., try to claw it back via duty drawbacks when it is returned to the original country, then pay again when the same item is purchased by someone else in the U.S. 

Our solution? Forward fulfillment. Rather than shipping returns across borders, we keep returns local. If a U.K. customer returns a Canadian brand’s product, it’s processed in the U.K., not sent back overseas. That means the customer gets their refund right away, the item is verified that it can be resold, and it goes right back into inventory. When someone else buys it, it gets shipped locally. That means no return freight, no duties re-incurred, and less money spent dealing with the returned item overall.

Consumers Are Willing to Wait…..If the Price Is Right

56% of shoppers and 69% of Gen Z say they’ll wait longer for a product if it saves them money. This flips the script on the old “faster is better” narrative. What consumers really want is value clarity, especially in apparel and tech, where 46% and 41% of shoppers, respectively, are already concerned about rising prices. 

Customers may be seeking cheaper options in other countries, but they won’t purchase if they think they will be hit with high fees and return shipping costs if the purchase doesn’t work out. 

Returns and fulfillment should follow this logic. With our forward-deployed inventory model, brands can fulfill faster and more cost-effectively by stocking and restocking products within each market, rather than shipping everything from a single warehouse or HQ. By keeping these operating costs down, merchants can offset some of the pain of the tariffs and keep customers happy. 

Smarter Returns = Strategic Advantage

Let’s be blunt: most return programs were built in an era when customer expectations were lower and tariffs weren’t on the radar. That era is over.

Brands that modernize their return strategy can:

• Cut return costs by up to 60% through localized processing
  
  
• Prevent fraud with real-time, in-person verification
  
  
• Increase inventory recovery via local resale or restock
  
  
• Build customer trust with instant refunds and simple drop-offs
  
  

In a tariff-driven world, that’s not just operational hygiene, it’s a competitive edge.

Final Thought: This Is the New Loyalty Loop

Price now outranks loyalty. Transparency is non-negotiable. And brands can regain control of their narrative in the post-purchase experience, especially with returns.

If you’re a cross-border merchant or global brand rethinking your strategy, it’s time to ask: what if your returns were your secret growth lever?

At ReturnBear, we’re helping fashion, lifestyle, and DTC brands turn reverse logistics into a forward-thinking advantage. Let’s transform your returns from a liability into your next win.

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