E-commerce spending in US dips for first time in 2 years: Report

Source:China Sport ShowRelease time:24-Aug-2022Clicks:

Article From：Fibre2Fashion

In July 2022, online prices decreased 1 per cent year-on-year —after increasing 0.3 per cent year-on-year in June and 2 per cent year-on-year in May—and dropped 2 per cent on a monthly basis. July is the first month where e-commerce entered deflation, after 25 consecutive months of persistent inflation online. During the month, consumers in the US spent $73.7 billion online, $400 million less than the prior month ($74.1 billion).

On a year-on-year basis however, e-commerce spend in July grew 20.9 per cent, with Prime Day driving record online sales for the retail industry overall, according to an Adobe Analytics report. Online spending in July also decreased compared to May ($78.8 billion) and April ($77.8 billion). E-commerce demand remains resilient on a year-to-date basis, with consumers spending $525.4 billion online in 2022 so far, growing 9.2 per cent year-on-year.

Prices for apparel fell 1 per cent year-on-year (down 6.3 per cent month-on-month), marking the second consecutive month where prices fell after dropping 0.1 per cent year-on-year in June. Apparel prices had increased for 14 consecutive months since April 2021, with prices having spiked in recent months (up 9 per cent year-on-year in May, 12.3 per cent year-on-year in April, and 16.3 per cent year-on-year in March).

“Wavering consumer confidence and a pullback in spending, coupled with oversupply for some retailers, is driving prices down in major online categories like electronics and apparel,” said Patrick Brown, vice president of growth marketing and insights, Adobe. “It provides a bit of relief for consumers, as the cost of food continues to rise both online and in stores.”

The DPI (digital price index), powered by data analytics solutions provider Adobe Analytics, provides the most comprehensive view into how much consumers pay for goods online, as e-commerce expands to new categories and as brands focus on making the digital economy personal.