Prices are rising online, but that hasn’t deterred consumers this holiday season, according to a new report from Adobe Digital Insights.
While most consumers probably first noticed inflation a year ago when gas prices started to rise, overall prices have also risen online for the past 19 consecutive months, according to Adobe’s Digital Price Index.
Online prices rose 3.1% year-on-year in December, following a record 3.5% increase in November, Adobe said on Wednesday in a new report that tracks 18 categories among 1 trillion site visits. American retail outlets.
“Since we tracked this, online prices have fallen 5% per year, and to have two years of 3% inflation is quite shocking to consumers,” said Taylor Schreiner, senior director of Adobe Digital Insights.
Although this is a “new phenomenon”, it is largely due to the supply chain, he said.
Adobe also reported Wednesday that consumers spent $204.5 billion online over the holiday season. This is an increase of 8.6% compared to the previous year, slightly lower than forecast. It was a big year of not finding what you wanted.
Shoppers saw 6 billion out-of-stock messages online in November and December, but retailers did a good job of recommending something else, Schreiner said, especially in toys. Out of stock posts were up 10% from last year’s holiday season and were 2.5 times higher than in 2019.
“If your running shoes are out of stock, you go somewhere else. But when adults buy toys, they can be redirected,” he said. Toys was also one of the few categories to offer bigger discounts during the season compared to before the holidays.
Other trends Adobe noticed from its Holiday 2021 transaction analysis:
- Curbside pickup held up to accelerated 2020 levels. Consumers chose the option in 25% of online orders at retailers that offered it. “We don’t think consumers are going to give up on this when the pandemic recedes,” Schneider said.
- Mobile online sales accounted for 43% of transactions during the holidays, up slightly from 40% in 2020. But there were six days in the season when more than 50% of online sales arrived at retailers in from smartphones, up from one day in 2020. Schneider doesn’t think mobile will take over shopping in the US It could hit 60% in several years, but there’s just too much we buy that we want to see on a bigger screen, he said.
- Buy now and pay later is another trend that may be slowing, he said. Online orders placed with the emerging payment method increased 10% and sales increased 27% year-over-year, but slowed from 2020 growth rates.
“Overall, the holiday season has been good, despite headwinds that we’ve never seen before,” Schneider said. “Whatever else is happening in the broader economy, the consumer continues to move online.”
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