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?
In an era of one-click purchases and next-day delivery, a shoppers patience can be just as influential as their budget.
A survey by the Michigan Economic Development Corporation found 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.
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But 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 isn’t the only hurdle. The survey found 30% of shoppers have stopped an order with a local business because of product availability or wait times.
Miller said consumers have become accustomed to the speed and convenience offered by major retailers.
They [consumers] tend to be very intolerant of low product availability or unduly long wait times, he said. A lot of that dynamic we attribute to the Amazon effect and 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.
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.
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.
Shopping small is often associated with higher prices, but Barger said consumers shouldn’t automatically assume that buying local will always cost more.
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Some produce she purchased locally was about the same price as what she 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 she found more difficult or expensive to buy locally.
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.
Want to shop local? Start small
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.
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.
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.
For holiday shoppers, another opportunity to test the local approach is Small Business Saturday, held the Saturday after Thanksgiving.
The bottom line: Shopping local can take a little more planning, but it doesn’t necessarily mean paying more.