From Revenge Spending to Revenge Saving: How On-Demand Print and Dropshipping Brands Can Win Now

The Post-Pandemic Consumer: A Moving Target

If you run an on-demand printing or dropshipping business today, you are building in one of the most volatile consumer environments in modern retail. The pandemic compressed years of change into months, exposing weak retail models and accelerating others. E-commerce shot into what McKinsey calls “hyperdrive,” and yet, five years later, physical retail traffic in many categories is now running ahead of 2019 levels.

During reopening, “revenge spending” became the buzzword. Consumers, freed from lockdowns and fueled by stimulus checks, rushed back to discretionary categories. Analysts pointed to Hermès’ flagship store in Guangzhou, which reportedly recorded about $2.7 million in sales on its first reopening day, as the emblem of pent-up luxury demand. In the United States, department stores saw roughly a 21% month-over-month surge in sales after early stimulus checks, reflecting a similar splurge mindset.

Today, that story is evolving. Research from banks and behavioral economists shows a parallel trend: “revenge saving.” Younger consumers in particular are deliberately building larger cash cushions and retirement contributions after seeing how fragile their finances felt during the crisis. Analysts tracking personal-saving data have noted that the U.S. saving rate recently ticked up from about 3.5% to 4.5%, and surveys cited by Vericast report that 71% of Americans plan to prioritize emergency savings and financial flexibility this year.

For founders in print-on-demand and dropshipping, this shift from revenge spending toward revenge saving and value-conscious behavior is not bad news. It simply means you cannot rely on impulse splurges alone. You must build businesses that serve emotional needs, deliver real value, and use personalization and data to turn one-off buyers into long-term customers.

This article breaks down the consumer psychology behind the shift, then turns it into a practical playbook for on-demand printing and dropshipping brands.

What Revenge Spending Really Was – And Why It Faded

Revenge spending, sometimes called revenge shopping or revenge buying, describes the surge in discretionary consumption that follows a period of forced restraint. Corporate finance analysts and consumer researchers converge on the same definition: people spend aggressively on non-essential goods and experiences to “make up for lost time” after a shock such as lockdowns or travel bans.

Unlike panic buying, which concentrates on essentials like groceries and cleaning supplies, revenge buying centers on superfluous and luxury items. Think handbags, jewelry, trend-focused clothing, premium electronics, cosmetics, decorative goods, and aspirational travel. The term itself has roots in China dating back to the 1980s; it resurfaced dramatically when COVID-era restrictions lifted and luxury stores saw record-breaking days as shoppers queued to buy the status goods they had been denied.

In the United States, several dynamics aligned to create a revenge-spending window. Large waves of stimulus checks boosted disposable income, while spending during the height of the pandemic had shifted toward basic necessities. Analysts tracking retail sales noted that as restrictions eased and vaccinations expanded, discretionary categories such as apparel, home goods, travel, and electronics rebounded quickly. Summer 2020 saw strong growth in home furnishings, and later waves brought renewed demand for going-out apparel and travel-related products. McKinsey has reported that about 51% of consumers surveyed expressed an explicit desire to “splurge” as the world reopened, with higher-income millennials particularly eager to spend on apparel, footwear, travel, and experience-based categories.

From a behavioral standpoint, revenge spending was less about income growth and more about emotion. Research summarized by Corporate Finance Institute and others points to frustration, boredom, fear of missing out, and a desire to restore autonomy after restrictions on movement. Reactance theory helps explain the dynamic: when people feel their freedoms constrained, they are motivated to reassert them, sometimes in exaggerated ways, which can include extravagant spending on visible goods and experiences.

The upside of revenge spending for merchants was obvious. It created short-term spikes in sales, higher average transaction values, and rapid recovery for some discretionary and luxury segments that had been hammered during lockdowns. Travel, hospitality, and experiential brands saw double-digit rebounds in bookings and spending once restrictions eased. Retailers that were ready with refreshed assortments of going-out apparel, travel accessories, and lifestyle products capture disproportionate share of that spike.

But the revenge cycle always had a built-in expiration date. Economists and retail strategists consistently warned that the boost would be front-loaded and temporary. As pent-up demand was satisfied and stimulus support faded, the constraints that existed before COVID—wage stagnation for some segments, housing costs, student debt, and now higher interest rates—would reassert themselves.

That is exactly what has played out. Analysts looking at personal consumption data show that the growth in discretionary spending, which surged to around 6% during the height of the revenge-spending binge, has cooled closer to mid-single-digit levels. At the same time, credit card balances and delinquencies have risen, and a “culture of austerity” is emerging, especially among younger consumers. Movements like “No Buy 2025” are simply visible expressions of a broader counterreaction: revenge saving.

For on-demand printing and dropshipping founders, the lesson is clear. Treat revenge spending as a historical catalyst that reset expectations for experience, speed, and personalization, but do not build a model that depends on recurring splurge waves. The game now is about capturing value-conscious buyers for the long term.

The Rise of Revenge Saving and the Value-First Shopper

Revenge saving turns the emotional script of revenge spending on its head. Instead of “I deserve to treat myself now,” the mindset becomes “I deserve to feel safe and in control.” Articles from community banks and financial analysts describe Millennials and Gen Z intentionally and aggressively boosting savings as a form of empowerment. This is not panic saving driven purely by fear; it is deliberate, values-based behavior that prioritizes freedom, flexibility, and resilience over visible consumption.

The structural pressures driving this shift are significant. Younger adults face high student debt burdens, an expensive housing market, and a job landscape shaped by gig work and automation. That makes liquid savings more attractive than illiquid assets. Social media has also normalized frugality; trends around no-spend months, sinking funds, and budgeting challenges turn saving into something shareable and gamified. Instead of posting new purchases, people post screenshots of growing emergency funds.

Macro data supports this mindset shift. Vericast cites a Vanguard survey showing that more than two-thirds of Americans intend to prioritize emergency savings. The Bureau of Economic Analysis has reported a recent uptrend in the personal saving rate, and retirement plan providers note record-high contribution rates, approaching recommended savings levels when employer matches are included. At the same time, retail analysts see high prices and elevated credit card balances pushing consumers toward underconsumption and careful trade-offs.

The result is bifurcated spending. Placer.ai’s analysis of store traffic shows strong growth at the value end—discount and dollar stores, value grocers, off-price apparel—alongside healthy performance in select luxury and premium experiences. Mid-market players without a clear value story are being squeezed. Visits to home furnishings and electronics chains remain well below 2019 levels, while off-price apparel stores record roughly 30% visit growth since before the pandemic and luxury apparel visits run above pre-COVID benchmarks. In dining, quick-service and fine dining perform better than mid-priced casual chains, which struggle unless they sharpen their value proposition.

Revenge saving does not mean people stop buying. It means they become more intentional, demanding either clear savings or clear “worth it” experiences. Research from First Insight and others emphasizes that price now dominates many purchase decisions, but framed as “value for money,” not just absolute cheapness. Consumers will drive across town or make two stops if they believe the second location offers a stronger value story or a unique item that feels worth the effort.

For on-demand printing and dropshipping brands, this polarization has two implications. You either position yourself at the value end with sharp prices, reliable quality, and straightforward designs, or you lean into premium experiences anchored in personalization, story, and brand. Sitting vaguely in the middle—generic designs at middling prices, slow shipping, and no distinct experience—is the most dangerous place to be.

The New Retail Infrastructure: Digital by Default, Hybrid by Design

COVID did not create e-commerce, omnichannel, or direct-to-consumer models; it compressed their adoption by years. McKinsey estimates that a decade’s worth of digital penetration was pulled forward in roughly 100 days. Card data showed nearly a 20% increase in online spending since early 2020, and the majority of consumers who tried online shopping became regular users.

At the same time, physical stores did not disappear. E-commerce’s share of U.S. retail sales surged to around 16% in 2020 and has essentially plateaued at that level, rather than taking over completely. Retailers like Walmart, Target, and IKEA have doubled down on smaller neighborhood formats, while Amazon’s efforts to build a large-scale physical presence have been less effective than expected. Analysts now agree that the winning model is neither online-only nor store-only; it is a fully integrated omnichannel system.

Consumer research from NielsenIQ and AdRoll highlights how hybrid behaviors have become embedded. Shoppers increasingly use “click, collect, complete” journeys, ordering routine items online for pickup and then finishing their trips in store. By 2021, about a quarter of U.S. grocery shoppers used some form of click-and-collect, and a large share of non-users reported openness to trying it. Curbside and in-store pickup, once emergency measures, are now baseline conveniences. At the same time, consumers are willing to pay significantly more for products that can be delivered quickly, and same-day delivery in many categories has become a competitive benchmark.

This matters for on-demand printing and dropshipping because it raises the bar on convenience and fulfillment. Consumers now assume that digital ordering, fast shipping, and flexible pickup or delivery options are standard. Departments like apparel, beauty, home decor, and personal care—core categories for print-on-demand and dropshipping—are precisely the ones where shoppers blend online browsing with in-person validation. They might discover a design on social media, compare alternatives on an Amazon-like marketplace, and expect clear delivery windows and hassle-free returns.

Under the surface, the infrastructure enabling this behavior relies on deep data integration. Post-COVID consumers expect shopping to feel seamless across channels, supported by connected back-end systems that treat them as recognizable individuals. Massive data collection and artificial intelligence now drive personalization, dynamic websites, and even in-store experiences via apps. Omnichannel order management systems allow inventory to be pooled across stores and fulfillment centers, reducing stockouts and enabling flexible delivery options.

Print-on-demand manufacturing and flexible dropship networks fit naturally into this landscape. On-demand, local, and small-batch production—highlighted in fashion industry analysis as the future of manufacturing—are precisely the strengths of modern POD providers. Brands that harness this infrastructure, rather than fighting it, can run asset-light operations while offering product variety and customization that traditional stock-heavy retailers struggle to match.

What All This Means for On-Demand Printing and Dropshipping Brands

The combination of revenge spending, revenge saving, hybrid shopping, and data-driven personalization has created a new baseline for how consumers evaluate brands. For a founder in POD or dropshipping, three themes matter most: choosing the right customer to serve, aligning your offer with emotion and value, and leveraging personalization as your main competitive lever.

Choosing the Customer You Want to Win

The post-pandemic consumer is not a single persona. Research from Ernst & Young, cited in marketing analyses, describes segments that range from “cautiously extravagant” shoppers eager to splurge once safe, to those cutting spending aggressively because of unemployment or uncertainty. Other studies underline that Generation Z and younger millennials are digitally native, less brand-loyal, and more comfortable sharing data if they see value and protection.

Practical segmentation for a POD or dropship brand starts with a decision. Do you primarily want to serve value-conscious revenge savers who still buy selectively, or splurge-oriented shoppers who are willing to pay for expressive, premium experiences? Both segments exist side by side. Placer.ai shows discount and off-price concepts gaining visits, while luxury apparel and fine dining also grow. The middle is shrinking.

If your designs are playful, trend-driven, and tied to events such as concerts, sports, and travel, you can lean toward the cautiously extravagant. These shoppers resonate with “treat yourself” messaging, curated collections, and time-bound offers, as described in guidance for revenge-spending campaigns. However, they still expect value for money and may quickly move on if they do not feel understood.

If your designs focus on evergreen themes, minimalist aesthetics, or everyday essentials, you may build your proposition around durability, fair prices, and a strong values story. That appeals to revenge savers who are willing to spend but only when it clearly supports their goals or identity. In practice, many successful POD brands straddle both segments by offering a value-driven core range and a limited set of premium, personalized drops that feel like special treats.

Calibrating Product Mix Around Emotion

Revenge spending patterns and ongoing consumer research show recurring category themes. Discretionary surges cluster around apparel, accessories, beauty, travel, and home improvement or decor. The “homebody economy” that McKinsey describes—investments in home theaters, gyms, and studios—revealed a lasting willingness to spend on the spaces people live in, even as they reallocated more time and money back to out-of-home experiences.

For on-demand printing, that translates into several emotional use cases. People want to be seen again, so statement apparel and accessories for socializing, travel, and events matter. People still spend heavily on their spaces, so wall art, throw pillows, blankets, and other decor with meaningful designs remain strong. People are revaluing experiences, so merch tied to milestones, trips, weddings, and communities becomes a way to commemorate and share identity.

The key is to design assortments around these emotional jobs rather than around generic “product categories.” Instead of thinking “I sell T-shirts and mugs,” think “I help remote workers feel part of a team again with custom gear,” or “I help new parents decorate a nursery that reflects their values,” or “I give superfans a way to celebrate their favorite artist’s tour.” Retailers and analysts emphasize that consumers prioritize experiences and self-expression; POD and dropshipping can deliver those in physical form.

Pricing and Value Perception in a Bifurcated World

Across studies, one pattern is constant: value perception is as important as actual price. Value-oriented formats now drive visit growth, and consumers increasingly cross-shop grocery, superstores, and wholesale clubs in single trips to maximize savings and assortment. At the same time, premium segments that tell a clear story about quality or status continue to perform.

For a POD or dropship brand, this means your pricing strategy and presentation must make your value obvious. If you choose a value positioning, highlight the benefit in concrete terms: consistent quality, fair pricing without bloated markups, and designs that do not go out of style. Reinforce this through bundles, simple volume discounts, and transparent shipping costs.

If you choose a premium positioning, you must deliver beyond the product. Research on revenge shopping from fulfillment providers stresses that luxury positioning extends to unboxing: packaging, inserts, and even filler materials need to match the perceived sophistication of the item. Embossed boxes, thoughtfully designed thank-you cards, and high-quality packaging materials are not decoration; they are part of the value the customer feels they are paying for.

In both cases, vague mid-market pricing without a distinct value story forces customers to work too hard to justify the purchase. Remember that 40% of shoppers in one Accenture-cited study abandoned websites because too many options caused analysis paralysis. Clear price-to-value framing—either “smart choice” or “special treat”—reduces friction and aligns with how today’s consumers are budgeting their revenge saving and occasional splurges.

Personalization: Your Most Powerful Lever

If there is one strategic theme every serious retail analyst agrees on, it is this: personalization is no longer a nice-to-have. McKinsey’s research shows that 71% of consumers now expect personalized interactions and that 72% expect brands to recognize them as individuals. About three-quarters of customers feel frustrated when personalization is lacking, and weak personalization has been linked to permanent loss of loyalty in a world where switching brands is easier than ever.

The upside is just as striking. Companies that excel at personalization generate around 40% more revenue from their personalization efforts than their peers, and moving to top-quartile personalization could unlock over $1 trillion in value across U.S. industries. Personalized communication is now a key factor for more than three-quarters of consumers when considering and repurchasing from a brand.

For fashion and apparel in particular, personalization is both essential and difficult. Forbes has highlighted five core challenges: collecting the right data, keeping it fresh in a fast-changing category, dealing with unique or one-of-a-kind inventory, recognizing the limits of algorithms for style decisions, and going beyond generic recommendations. Yet the same analysis shows that brands which solve these challenges—often by combining human judgment with AI—can deliver experiences that feel closer to working with a stylist than clicking around a catalog.

On-demand fashion and decor are especially well suited to personalization because the supply chain is inherently flexible. Manufacturing is already moving toward on-demand, local, small-batch production, and AI-driven fit and style tools can reduce returns by substantial percentages while tripling repeat customer rates for some brands.

For a POD or dropship founder, personalization does not require enterprise-level tools from day one. It means thinking about the entire journey—before, during, and after the purchase—and using data you already have to make each interaction more relevant.

Here is a concise way to think about it:

In my work with e-commerce founders, the highest-performing POD brands are rarely those with the largest design catalogs. They are the ones that help each customer see exactly what is relevant and meaningful to them, reduce decision fatigue, and then keep the relationship going with tailored communication.

Operating Model: Inventory-Light, Data-Heavy

On-demand printing and dropshipping already give you an inventory advantage in a world where overproduction and returns have become major pain points. Fashion industry analysis notes that smaller, faster production cycles and AI fit tools can cut returns substantially and reduce waste. On-demand manufacturing means you produce only what is ordered, aligning neatly with both sustainability and revenge-saving mindsets.

However, the strength of on-demand can become a weakness if you treat it as an excuse not to plan. Revenge spending was a short, sharp spike, and guidance from retail experts emphasizes the risk of misreading such surges as permanent. Overexpanding stores, locking in large production runs, or betting heavily on single product categories based on temporary demand often lead to hangovers once consumer behavior normalizes.

For an asset-light POD or dropshipping operation, the equivalent risk is overcommitting to narrow niches or untested designs without a learning loop. The better approach, aligned with advice from Fit Small Business and others, is to stay agile. Treat every design or product line as a test. Launch limited collections, monitor sell-through and returns closely, and be ready to phase out underperformers quickly. Use data from multiple channels—your store, marketplaces, and social platforms—to understand which customer segments and emotional jobs your products are actually serving.

Operationally, modern order management systems enable small brands to act like larger ones. Research on revenge shopping logistics highlights the value of pooling inventory across stores and fulfillment centers so that online orders do not instantly empty store shelves. While you may not own warehouses or physical locations, you can still orchestrate multiple print providers or dropship partners behind a unified storefront. Choosing partners that support multiple geographies, reliable tracking, and standardized packaging allows you to present a consistent experience while flexibly routing orders.

Fraud prevention is another underestimated operational piece during high-value spikes. When revenge shopping pushed average order values up, retailers that had invested in AI-driven fraud detection could approve legitimate luxury orders faster and decline fewer good customers. For a POD or dropship brand, standard fraud tools from your platform or payment processor may be sufficient early on, but as you add higher-ticket items—such as bundled wall art sets or premium embroidered apparel—monitor your chargebacks and false declines. Payment friction is a fast way to lose impulsive revenge spenders and cautious revenge savers alike.

Finally, remember that logistics and packaging are now part of your brand. Consumers who are willing to pay for fast delivery and premium experiences expect packaging that reinforces the story you tell online. Studies of luxury revenge shopping emphasize that sending an expensive, status-signaling product in a plain, low-quality box undermines the perceived value. For print-on-demand, you can negotiate branded packaging options with your provider or supplement standard mailers with cost-effective but thoughtful touches: a well-designed insert, consistent branding stickers, or a simple thank-you message that speaks directly to the customer’s motivation for buying.

Pros and Cons of the Moment for POD and Dropship Founders

The post-pandemic environment is challenging, but it also plays to many strengths of on-demand models. On the positive side, you are naturally aligned with several durable trends that researchers highlight: asset-light operations, on-demand manufacturing, digital-first experiences, and the ability to personalize at scale. You can adapt assortments quickly to follow shifts from revenge spending to revenge saving, and you can target micro-segments without retooling factories or filling warehouses.

You also benefit from the fact that consumers have become more sophisticated omnichannel shoppers. Gen Z and younger millennials, projected to make up a large share of global consumers and carrying tens of billions of dollars in buying power, are comfortable mixing online and offline, comparing prices, reading reviews, and expecting tech-rich experiences. They are open to renting or sharing instead of owning in some categories and prioritize brands that align with their values. An on-demand apparel or decor brand that reflects those values, offers inclusive representation, and remembers a customer’s preferences has a head start.

On the risk side, you face a value-obsessed shopper with more options than ever. Ultra-cheap digital marketplaces now generate massive global sales, adding pressure on pricing and discovery. Retail Dive notes that platforms like Shein and Temu together accounted for more than $100 billion in global sales in 2024, with a meaningful portion taken from legacy retailers. That same dynamic affects smaller brands that rely on generic designs or slow shipping. You cannot win a race to the bottom on price against platforms whose scale is orders of magnitude larger.

You also face a more cautious consumer budget. With personal saving rates rising and big-ticket categories like home furnishings and electronics still below pre-pandemic baselines, shoppers are selective about where they spend discretionary dollars. Many have tried new brands during the pandemic and are still willing to switch if they find a better fit. That is a threat if you offer a forgettable experience, and an opportunity if you consistently deliver relevant, personalized value.

The path forward is to accept that volatility is now normal, and to build your brand around adaptability and customer-centricity rather than any single product trend.

A Practical Roadmap for the Next 12 Months

If you are building or scaling an on-demand printing or dropshipping business now, you do not need a decade-long transformation plan. You need a focused, practical roadmap for the coming year that reflects what we know from revenge spending, revenge saving, and post-pandemic retail research.

Start by clarifying who you are for and why you exist. Use a simple exercise: write a one-sentence statement describing the emotional job your store fulfills for its ideal customer. It might be helping people celebrate their identities, helping teams feel connected remotely, or helping homeowners create spaces that feel like them. Everything else—designs, marketing, packaging, pricing—should be coherent with that statement.

Next, tighten your assortment around that emotional job. Review your current catalog and identify which products actually sell and which just create noise. Research shows that too much choice can cause paralysis and abandonment. Sunset designs that do not align with your core job or that underperform significantly. Then, design one or two new small-batch collections specifically for your primary segment, whether that is cautiously extravagant splurgers or disciplined revenge savers looking for occasional treats.

Then, implement at least one meaningful personalization feature end-to-end. That might be a style or interest quiz on your homepage that routes visitors into tailored collections, a post-purchase email that recommends complementary items based on their first purchase, or a simple on-site module that lets customers see designs on models or rooms that look more like them. The goal is not to have a perfect AI stack, but to start collecting and using first-party data in a way that customers can feel.

After that, strengthen your value story and experience. Review your pricing and shipping through the lens of a revenge saver. Is it clear why your items are worth the money compared with cheaper alternatives? Are you transparent about delivery times and returns? Does the unboxing experience match the price point? This is where you may decide to adjust shipping thresholds, invest in slightly better packaging, or create bundles that make the perceived value unmistakable.

Finally, make measurement and adaptation a habit rather than a project. Leading retailers now use analytics and test-and-learn approaches as an operating model, not as a one-off campaign. You can apply the same principle at your scale. Choose a few key metrics—such as repeat purchase rate, average order value for personalized vs non-personalized journeys, and time from click to delivery—and review them monthly. Use the insights to iterate on designs, personalization logic, and operational partners. This is how you build the reflexes that allow you to navigate whatever the next consumer wave brings, whether it is another bout of revenge spending, a deeper era of revenge saving, or something in between.

Brief FAQ

Is revenge spending “over,” or should I still plan for splurge waves?

Large, stimulus-fueled revenge-spending waves like 2021 and 2022 have faded, and analysts now talk more about value-consciousness and revenge saving. However, mini-surges still happen around reopenings, travel seasons, and cultural moments. The smart approach is to be ready to flex your assortment and marketing when you see strong leading indicators, such as a spike in searches or social buzz in your niche, without making long-term commitments based on temporary spikes.

Should a new POD brand lean value or premium?

Both strategies can work, but it is risky to aim for the middle. Traffic and spending data show strength at the value end of the market and in clearly differentiated premium experiences. Choose the lane that best fits your skills and audience. If you cannot compete on cost against marketplaces, focus on personalization, community, and design quality. If you have access to very efficient production and shipping, you can credibly build a “smart deal” brand, provided you still offer decent quality and clear communication.

Do I need a physical presence to succeed?

You do not need your own stores to win, but you should think in omnichannel terms. Consumer research shows that shoppers treat online and offline as one continuum. You can participate in that continuum through pop-ups, event merchandising, or partnerships with existing retailers or creators who have physical reach. Even without a physical presence, make sure your digital experience respects how people actually shop today: discovery across multiple channels, quick path to purchase, transparent fulfillment, and easy pathways to get help.

Closing

As a mentor to e-commerce founders, my consistent advice is this: stop waiting for the “old normal” to return. The mix of revenge spending, revenge saving, hybrid shopping, and personalization has created a new baseline that is here to stay. On-demand printing and dropshipping are structurally well positioned, but only brands that use data thoughtfully, design around real human motivations, and deliver sharp value will thrive. Build for resilience, not for spikes, and your business can grow through whatever the next wave of consumer behavior brings.

References

1. https://en.wikipedia.org/wiki/Revenge_buying
2. https://consumerresearcher.com/retailing-after-covid-19-whats-coming
3. https://www.adroll.com/blog/consumer-behavior-13-post-pandemic-trends-to-watch
4. https://www.firstinsight.com/greg-petro-forbes-blog/three-ways-the-pandemic-era-changed-retailing
5. https://fitsmallbusiness.com/what-is-revenge-spending/
6. https://www.north.com/blog/post-pandemic-retail-trends-that-are-here-to-stay
7. https://www.radial.com/insights/revenge-shopping
8. https://shanghaigarment.com/why-is-personalization-the-future-of-fashion/
9. https://www.ublocal.com/revenge-saving-how-millennials-and-gen-z-are-taking-control/
10. https://www.veesual.ai/blog/why-does-personalization-make-a-difference-in-fashion-e-commerce