Last Updated on by Dan S
Originally Published June 23, 2022.
Economic uncertainty continues to impact consumer behavior in 2025. Inflation rates hover around 2.9 percent, while interest rates remain elevated at 4.25 percent. Consumer sentiment has declined sharply in response to tariff-related news, with many consumers making changes in their spending habits and experiencing a sharp decline in discretionary spending intentions across all income groups. These factors can lead to your Shopify sales dropping as consumers tighten their wallets. In this quick guide, we will cover some simple methods you can undertake as a store owner to reduce the impact and hopefully come out the other side unscathed.
3 easy methods to recession proofing your store
Below are some simple methods you can use for your business to help in recession proofing your store.
Create Discounts
Creating discounts can give the impression of a deal. 70% of consumers admit that a discount offer has pushed them to make a purchase they didn’t plan. Savvy customers still like to shop during economic uncertainty when there is the potential for a saving. You obviously make less margin as merchant when you discount but a handful of discounted sales is better than no sales.
- Limited-time discounts are the number one thing that gets consumers to buy, with 62% saying they’re the top driver for completing a purchase. Consider flash sales and countdown timers to create urgency.
- Use tiered discount strategies like “10% off $50 or 15% off $100” to encourage larger cart sizes while protecting margins.
- Implement exit-intent promotions with targeted offers to capture shoppers before they abandon their carts.
Deploy cross-sells and upsells
One of the easiest steps you can take is to simply sell more to those who are still buying. This helps make up for the customers that stop. Then when sales pickup again, you make even more!
- Use AI-powered product recommendations to personalize upsell and cross-sell suggestions based on customer behavior and purchase history.
- Implement post-purchase upsells during checkout to increase average order value without disrupting the buying experience.
- Create product bundles that combine complementary items at a slight discount to encourage larger purchases.
By activating SellUp on your store, you can take advantage of a 24/7 sales assistant who can cross-sell and upsell to your customers. From On Page and Action Offers to Dynamic Cart and Post Purchase Offers, you can sell much more without any additional ad spend, even whilst you sleep.
Cross promote and partner
Partnering with other Shopify stores can be a match made in heaven. An example would be a store that sells garden furniture and toys partnering with a store that sells outdoor bbq’s and pizza ovens. They are both in the same category to some extent but they don’t sell competing products. By doing a newsletter promoting an offer for each other, you could acquire some new customers with no spend.
- Use cross-store partnership apps like Carro to co-sell products across merchant storefronts and expand your reach.
- Offer customer loyalty incentives and alternative payment options like buy-now-pay-later to inspire customers to buy from your brand.
- Leverage affiliate and creator partnerships where partners earn commission on sales, eliminating upfront advertising costs.
4. Stock Essentials + Affordable Products
Some products are known to be recession-proof, including toiletries, health and first aid items, home goods, and groceries – items that continue to experience demand despite economic downturn. Many shoppers are approaching the holidays with caution and practicality, with a stronger focus on essentials.
- Use Shopify’s demand forecasting tools to keep lean inventory focused on high-converting SKUs only.
- 58% of consumers are willing to pay more for eco-friendly products, with Millennials (60%) and Gen Z (58%) as key drivers. Consider sustainability-focused products to attract conscious consumers.
Conclusion
Luckily, economic downturns don’t hang around forever. They can sometimes be minor slumps in the economy or something more impactful. Consumer spending growth is likely to weaken to 3.7% in 2025, though consumption is still showing resilience as unemployment remains low and consumers buy ahead of tariff-related price increases. The great news is that by doing the above, your store can come out even stronger the other side.
- Consumer spending has risen in 2025, but the gap between lower- and higher-income households remains pronounced. Focus on value propositions that resonate across different income segments.
- Consider leveraging subscription models – they can maintain strong retention during downturns while providing predictable revenue.
- Focus on acquisition channels that are less affected by economic fluctuations, such as search engine marketing or email marketing.
Smart Tech Integration
Throughout your store strategy, take advantage of current Shopify features to maximize efficiency:
- Smart inventory management with demand insights to reduce overhead costs
- Apply discounts to already fulfilled items for more accurate financial attribution and reporting
- Choose who gets automatic discounts – everyone, specific segments, or specific customers – to offer more tailored promotions
- Built-in analytics and multi-store reporting for better decision-making during uncertain times
Continue evolving with your customers—and remember, every economic climate brings new opportunities when you’re equipped with data, technology, and creative thinking.
