An independent FedEx Corp. entrepreneur unloaded the packages from a delivery truck on Cyber Monday in New York, USA, on Monday, December 2, 2019.
Michael Nagle | Bloomberg | Getty Images
Online merchandise prices have now risen for an unprecedented 15 consecutive months, following that historic period of decline, according to a new report from Adobe Digital Insights.
Inflation affects categories including pet products, over-the-counter drugs, clothing, furniture and flower arrangements, the report says.
The rise in digital adhesive prices across the industry means that e-commerce transactions are poised to soon account for about $ 1 of every $ 5 spent by Americans, in addition to $ 1 of every $ 6 in 2017, Adobe said. Adobe Digital Insights ’economy index tracks more than 1 trillion visits to U.S. retail sites and more than 100 million products in 18 categories.
Last month, Adobe found that online prices have grown 3.1% year-over-year and up 0.1% from the previous month. From 2015 to 2019, online prices fell by an average of 3.9% annually. Adobe has been tracking its so-called digital economy index since 2014.
Price gains are happening over a period of time that usually sees prices fall, Adobe said in its report. Retailers tend to use heavy-duty promotions to get rid of excess merchandise at the end of the summer and to earn customer loyalty while completing their back-to-school shopping. Not this year.
“Categories that once had a smaller presence in e-commerce are becoming increasingly popular, with unprecedented price trends no longer holding back general inflation,” said Adobe Digital Insights chief analyst Vivek Pandya. “We’re entering new territory.”
Given this trend, Adobe predicts that – by November 1 this year – Americans will have spent more time online than they’ve heard on the web throughout 2019.
Consumers have already processed more than $ 541 billion on the Internet in the first eight months of 2021. It is up 9% from a year earlier and more than 58% from the same period in 2019, according to Adobe .
On Tuesday, the Department of Labor said prices for a variety of consumer goods had risen less than expected in August, offering a sign that inflation may begin to fall. However, these data do not include online pricing.
“Most of the recent U.S. inflation revolt has been driven primarily by supply chain bottlenecks and low inventory levels, but higher labor costs are often passed on to consumers and they are considered a precursor to broader inflation, ”said Jack, economist at the Kleinhenz National Retail Federation.