A recent report by Adobe shows that e-commerce is experiencing many of the same pricing pressures in the broader economy due to supply chain problems, higher shipping and labor costs.
Online prices rose 1.9% in October from a year earlier and 0.9% from the previous month. It marks the 17th straight month of increases after more than six years of declines in the Adobe Digital Price Index.
This year among the 18 product categories tracked by Adobe, all but one (books) saw higher prices online when indexed to a historical average (2015 to 2019). This was particularly notable in categories that see an uptick in spend during the holiday shopping season, such as electronics and apparel.
“After 17 consecutive months of online inflation, we are entering a new normal in the digital economy. As e-commerce takes on a greater share of overall retail, the pricing trends have become a more important indicator of net impact to consumers”, says says Vivek Pandya, lead analyst of Adobe Digital Insights.
Also, last month consumers saw over 2 billion out-of-stock messages online, according to the Adobe report. Ongoing supply-chain disruptions and strong demand will probably keep pushing prices up.
The silver lining is that online price increases remain far below overall inflation, which rose 6.2% last month in the US, the fastest annual pace since 1990, notes Bloomberg.
Adobe analyzes 1 trillion visits to retail sites and over 100 million products.
More Amazon news
Amazon debuts its self-driving delivery robot Scout
Latest development in Amazon’s logistics business The new self-driving delivery robot is the latest development in Amazon’s growing logistics business and the cutest last-mile solution yet According to CNBC, Amazon is launching a new self-driving delivery...
Amazon’s new ad strategy: Free samples from Amazon
Free samples based on what it knows about you “It’s like Amazon’s product recommendations, but real, so you can try, smell, feel and taste the latest products” Amazon is sending shoppers free samples of products as part of the company’s push into advertising, reports...
Amazon Alexa vs Google assistant
CES 2019: Amazon vs Google Amazon and Google showed at CES 2019 that they’re going to be in every aspect of our lives. Products that are in cars, home appliances, TVs, alarm clocks and more all have Amazon Alexa and/or Google Assistant built-in. At CES 2019, the...