Online Shopping and How its Hurting Small Businesses

Carol Scott
Oct 18
2 min read

We all know that 2025 has been on a roller coaster since the clock struck midnight in 2024. Many small businesses and some major businesses have folded. Social media has gone from a place where almost anyone who was pursuing a vision, could build an audience that was loyal to their vision. Small businesses were hosting live selling events where consumers could purchase their products right then and there. The following, support and excitement was amazing to watch and participate in. And this was 5 years ago or more. My how times have changed. It seems like the wicked witch of the west, came in with her "I'll Get You My Pretty" and cast a horrible spell over everyone and everyone and everything associated with thriving for a successful business. Now don't get me wrong, everyone isn't suffering from the curse. Because it depends on what you're selling, the need of the product/services to the consumer and how it is marketed.

It also depends on how long the small business has been in business and how long they have had the consumers that support them. One thing is for sure the support from consumers to shop online has changed. So let me share a little information about Online shopping and how it's hurting small businesses.

I recently had a thought to cross my mind as to why the link in the bio suddenly wasn't as popular as it used to be. So, I took to google and did some research. Here is what I found. I didn't need to do any further investigation because this list summed it all up.

🚫 Barriers to Online Shopping

No physical interaction: Around 46% of shoppers say not being able to touch or feel products is a major drawback. For tactile or sensory-driven items (like stationery or home goods), this is especially important. (Blogger Response: I really don't support this reason, because technology is taking over and physical products cannot be supplied to every consumer to touch and feel)
Uncertainty about quality: About 45% worry the product won’t match the description or photos.
Complicated returns: 34% cite returns as a hassle—from paying shipping fees to waiting for refunds.
Shipping delays & costs: 32% dislike slow or expensive delivery.
Fraud & trust issues: Concerns about scams, stolen data, or counterfeit products still deter some shoppers.
Overwhelm & decision fatigue: Nearly 74% of shoppers abandon carts because they feel overwhelmed by too many options.
Hidden costs: Unexpected fees (taxes, shipping, handling) at checkout can cause people to drop off.

Based on this list, I can totally understand why many have resulted in being selective with whom they choose to shop with online. And sticking with familiar companies like Amazon, Targets, Walmart, etc. Which in the end is really hurting the small business, unless they become a part of the online marketplace of the companies listed above.

WHAT CAN BE DONE TO GET OVER THIS HUMP?

This is a fierce challenge and a whole other blog post or podcast discussion. In the meantime, hang tight small businesses, "This too shall pass"