E-commerce consumers keep shopping, even as inflation drives up prices – FreightWaves

Inflation has pushed e-commerce income greater Prior to now yr, with The primary two months of 2022 notably impacted, Based mostly on evaluation from Adobe.

The agency said $3.8 billion of e-commerce gross sales progress in January and February of this yr was As a Outcome of Of greater prices. The U.S. Bureau of Labor Statistics’ Shopper Worth Index said e-commerce gross sales fell 3.7% in February from January, which noticed a 14.5% enhance from December. Neither quantity was adsimplyed for inflation.

Adobe (NASDAQ: ADBE), which launched The outcomes final week at its Adobe Summit, said on-line spending was $138 billion in January and February.

Inflation took its toll over the previous two yrs as properly. Adobe found that e-commerce totaled $1.7 trillion from March 2020 by way of February 2022, with $32 billion of that tied On to greater prices for items. The agency expects on-line commerce to surpass $1 trillion this yr, with about $27 billion attrihowevered to greater prices.

Grocery is a winner

Patrick Brown, Vice chairman of progress advertising and insights for Adobe, said e-commerce is current process a metamorphosis As a Outcome of of on-line grocery buying.

“E-commerce is being reshaped by grocery buying, a class with minimal discounting As in contrast with legacy packages like digitals and attire,” he said in A press launch. “It highlights a shift Inside the digital financial system, the place velocity and comfort Have gotten simply as important as value financial savings.”

The evaluation found that 41.8% of e-commerce was pushed by three packages: groceries, digitals and attire. Owing to the pandemic, groceries was The huge winner, surging 103% yr-over-yr in 2020 To Obtain $73.7 billion earlier than leaping one other 7.2% in 2021 To Obtain $79.2 billion. Groceries now make up 8.9% of the e-commerce market.

Consumers now spend A imply of $6.7 billion every month on groceries, up from $3.1 billion pre-pandemic. Adobe expects the class to prime $85 billion this yr.

Watch: The challenges on on-line grocery

Electronics reprimarys The Most very important e-commerce class, with 18.6% of The general e-commerce market and up 8% yr-over-yr in 2021. Consumers flocked to on-line digital buys when the pandemic started, spending $152.7 billion in 2020 — a 26.8% enhance over 2019 — and that hasn’t slowed, with People spending $13.6 billion every month on digitals right now. Adobe says digitals might prime $174 billion this yr.

Apparel reprimarys the third Hottest class on-line, although its progress has reprimaryed slower than groceries and digitals. The class primarytains a 14.3% share of e-commerce gross sales however noticed simply 8% yr-over-yr progress in 2021. Nonetheless, consumers are spending $10.2 billion Per thirty days on clothes.

Present chain impacts

The disruptions seen all by way of The supply chain over the previous two yrs have impacted e-commerce sellers. Adobe found that on-line retailers displayed 60 billion out-of-inventory messages between March 2020 and February 2022. The possibilities a buyer will see an out-of-inventory message At the second are 1 in 59 pages, up from 1 in 200 pages pre-pandemic.

Consumers …….

Source: https://www.freightwaves.com/news/e-commerce-consumers-keep-shopping-even-as-inflation-drives-up-prices