While holiday discounts pushed online prices down in November 2021 from the previous month, year-over-year growth hit new highs.
According to Adobe Digital Economy Index (DEI) data for the month of november 2021, online prices hit a record high 3.5% year-over-year increase, even though they fell 2% month-over-month (MoM) due to vacation discounts. This is the biggest year-over-year increase since Adobe began tracking the digital economy in 2014, and it marks the 18the consecutive month of online inflation year-over-year.
Clothing was a standout category with prices rising 17.3% year-on-year and down just 0.4% month-on-month, hitting a record high inflation. One in four dollars is now spent online in the United States, according to Adobe.
In November 2021, 11 of the 18 categories tracked by Adobe’s Digital Price Index saw their prices increase year-on-year. Clothing prices increased faster than any other category, while price declines were seen in seven categories: electronics, personal care products, office supplies, jewelry, books, toys and computers. Based on the MoM, all but four categories (groceries, pet products, tools / home improvement, and medical equipment / supplies) saw their prices drop with the arrival of vacation discounts.
- Clothes: Prices are up 17.3% yoy and down 0.4% mo. Since 2014, just three months (August 2016, January 2020, February 2020) have seen clothing prices increase online 9% or more year-on-year. For the past eight consecutive months, the category’s online prices have increased more than 9% year-on-year each month.
- Grocery stores: Prices are up 3.9% yoy and 0.6% mo. Online prices have increased on an annual basis for 22 months, in line with the Consumer Price Index, which captures the prices that consumers pay for groceries in physical stores.
- Electronic: Prices are down 0.4% YoY and down 4.0% MoM. Historically (2015-2019), prices were down 9.06% year-on-year on average for the category, which includes game consoles, mobile devices, TVs and portable devices. On Cyber Monday 2021, consumers paid more for electronics than in previous years, with price drops of around 12% from 27%.
- Appliances: Prices are up 4% yoy and down 2.7% mo. The category has experienced 19 consecutive months of online inflation on an annual basis.
- Toys: Prices are down 2.9% year-on-year and 3.6% month-on-month. On Cyber Monday 2021, toys were the only category where the price drops were larger than last season, in the order of 22% from 19%.
[Read more: Cyber Monday still biggest e-commerce day – but how big?]
“Persistent supply chain constraints and sustainable consumer demand have supported record inflation in e-commerce, with clothing seeing a high volume of out-of-stock messages online compared to other categories,” said Patrick Brown, vice president of Growth Marketing and Ideas. , Adobe. “With offline prices soaring in the Consumer Price Index, however, it is still cheaper to buy categories such as toys, computers and sporting goods online. “
The Adobe Digital Economy Index (DEI) uses the Fisher Price Index to track e-commerce prices. The Fisher Ideal Price Index uses the quantities of matched products purchased during the current period (month) and a previous period (previous month) to calculate price changes by category. Adobe’s analysis is weighted by the actual quantities of products purchased in the two consecutive months. Based on Adobe Analytics, Adobe DEI analyzes 1,000 billion visits to retail sites and over 100 million SKUs across 18 product categories.