Are sellers experiencing a "price increase wave"? The U.S. online market continues to experience inflation

According to the latest Digital Economy Index report released by Adobe, U.S. e-commerce prices continue to inflate. Compared with July 2020, online commodity prices rose by 3.1% in July 2021, exceeding the 2.3% year-on-year increase in June. From 2015 to 2019, the price of online goods fell by an average of 3.9% per year.

"Online inflation remains high and shows no signs of slowing down," Adobe concluded in its July report. Adobe believes that increased online shopping, surging demand and supply chain shortages will make online price increases the new normal. "Even if supply chain issues are resolved, growing demand is still likely to reduce discounts as sellers look to maintain profits."

Of the 18 product categories tracked by Adobe DEI, prices rose in nine categories in July, after falling every year in the past; only office supplies saw a price drop compared to the average level from 2015 to 2019.

Computers and electronic products are traditional categories of e-commerce. Before 2019, computer prices fell by an average of 9.24% per year. However, in July this year, computer prices only fell by 6.97%. The changes in electronic products were even greater. Before 2019, electronic product prices fell by an average of 9.06% per year, while the prices of this category only fell by 2.04% in July.

During the pandemic, the demand for pet products increased, and the prices of this category of products saw a huge increase. In July, the price of pet products increased by 1.37%, while before 2019, the average price would fall by 1.12% per year. Personal care products, which had an average annual price decline of 1.23% before 2019, rose by the same amount (1.23%) in July. Clothing prices once again showed double-digit growth, up 15.26% from July 2020.

"As the real estate market continues to heat up and consumers spend more time at home, online inflation continues in categories such as furniture/bedding, home/garden, tools/home improvement, and appliances." Adobe predicts that these categories will continue to be drivers of online inflation if demand remains high.

USA

E-commerce

Inflation