Americans want to shop local. Price and delivery speed can get in the way

Shopping local can come with a feel-good payoff. But how much more are you willing to pay, and how much longer are you willing to wait for an order to arrive?

The Growing Desire to Shop Local

In an era of one-click purchases and next-day delivery, a shopper’s patience can be just as influential as their budget. A survey by the Michigan Economic Development Corporation found that 63% of shoppers are willing to pay at least up to 5% more for U.S.-made products, and 89% are more likely to shop at small businesses that source their products locally. This desire to support local economies is gaining momentum, reflecting a broader shift in consumer values.

However, that willingness has its limits. “Once you get beyond a 5% difference in pricing, we'll start to see consumers say, ‘You know what? I want to support U.S. businesses, but my pocketbook is just not fat enough’ to support paying substantially more than what I would otherwise,” said Jason Miller, a professor of supply chain management at Michigan State University. Price sensitivity remains a key factor in consumer decisions, even among those who prioritize local shopping.

Price isn't the only hurdle. The survey found that 30% of shoppers have stopped an order with a local business because of product availability or wait times. Consumers have become accustomed to the speed and convenience offered by major retailers, and deviations from that standard can lead to frustration and abandoned purchases. This expectation is often attributed to the “Amazon effect” and the fact that Gen-Z consumers have grown up expecting today or next-day delivery.

That expectation can put smaller retailers at a disadvantage. Offering two-day delivery, for instance, may require a business to keep inventory at multiple locations around the country, something that is much easier for a massive retailer than a neighborhood business. The logistical challenges of competing with large corporations often leave local businesses struggling to meet consumer demands.

The Local Shopping Experiment

What happens when you try to shop only local? Jennifer Barger, director of content at Consumers' Checkbook, put the idea to the test by spending a month shopping only at local retailers or websites. “I wanted to see if I could apply it not only to food, but to other things,” Barger said. Her experiment offered a firsthand look at the realities of supporting local businesses.

She quickly discovered that shopping local sometimes requires a problem-solving mindset. When Barger needed a new electric toothbrush, she was tempted to order one from Amazon. Instead, a local pharmacy ordered it for her. “You had to make a little bit more effort, but I felt way better about giving my money to them than giving it to a giant conglomerate,” she said. This highlights the trade-offs involved in prioritizing local shopping – a willingness to be flexible and resourceful is often required.

Shopping small is often associated with higher prices, but Barger’s experience showed that consumers shouldn't automatically assume that buying local will always cost more. “Some produce I purchased locally was about the same price as what I would have paid elsewhere, and in some cases it was cheaper. Other products were a different story. Toilet paper was significantly more expensive at a local general store than at a major chain. Fish, technology products and shoes were also among the items I found more difficult or expensive to buy locally,” she said. This underscores the importance of comparison shopping, even when prioritizing local businesses.

That means shoppers may still need to rely on major retailers such as Walmart or Target for certain staples. Plus, shopping locally does not necessarily mean buying domestically. Independent stores can also sell products sourced from outside the United States, complicating the definition of “local” in a globalized marketplace.

Practical Tips and Resources

For consumers interested in supporting local businesses, Barger recommends starting gradually. That could mean trying a neighborhood pharmacy or farmers market, then comparing the price, quality and convenience with what you normally buy elsewhere. This phased approach allows consumers to ease into local shopping without feeling overwhelmed or financially strained.

There are also resources in some states designed to help businesses source products closer to home. Miller said those programs can help companies identify regional suppliers, particularly when tariffs or other supply-chain disruptions make their existing suppliers more expensive. These initiatives aim to create a more resilient and localized supply chain, benefiting both businesses and consumers.

Barger also acknowledged that shopping locally was more practical for her because she lives within walking distance of a downtown area with several grocery options and was shopping only for herself and her husband. Families with children or consumers with fewer stores nearby could face additional challenges. Accessibility and convenience remain significant barriers for many potential local shoppers.

Small Business Saturday and Beyond

For holiday shoppers, another opportunity to test the local approach is Small Business Saturday, held the Saturday after Thanksgiving. This annual event encourages consumers to consciously support small businesses during the holiday season.

The bottom line: shopping local can take a little more planning, but it doesn't necessarily mean paying more. It requires a willingness to be flexible, research options, and understand the challenges faced by local businesses. By making informed choices and supporting our neighbors, we can contribute to a stronger and more vibrant community.

Marcus's Perspective: Supporting Local in Bocaraton

As residents of Bocaraton, we have a unique opportunity to support our local businesses. However, the challenge lies in balancing our desire to shop locally with the realities of pricing and convenience. While it's true that local businesses can offer a sense of community and support for our neighbors, we must also consider the practicalities of their operations.

It's encouraging to see that 89% of shoppers are willing to shop at small businesses that source locally. This shows a growing commitment to supporting local economies. But the 30% who have stopped orders due to availability or wait times highlight the need for local businesses to adapt and perhaps rethink their supply chain strategies. Addressing these logistical hurdles is crucial for local businesses to remain competitive.

For those of us in Bocaraton, starting small is a great way to begin. Try a neighborhood pharmacy or farmers market, and compare prices and quality. This not only supports local businesses but also helps us understand the challenges they face. By doing so, we can make informed decisions and support our community in meaningful ways. Consider exploring the Boca Raton Chamber of Commerce for a directory of local businesses.

As we approach the holiday season, Small Business Saturday offers a perfect opportunity to test the local approach. It's a chance to show our support for our neighbors and local businesses, while also ensuring that we are making the best choices for ourselves and our families. Let’s make a conscious effort to shop local and invest in the future of Bocaraton.