Inflation Driving Higher Online Spending, but Not Deterring Demand: Adobe
U.S. consumers spent $1.7 trillion online during two years of the COVID-19 pandemic (March 2020-February 2022), $609 billion more than in the two preceding years combined, reported Adobe Tuesday. Demand remained strong in 2021 with $885 billion in online spend,…
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up 8.9% year over year, it said: “As the digital economy shifts to more personalized customer experiences, Adobe expects the annual online spend in the U.S. to surpass $1 trillion for the first time in 2022.” Of the $1.7 trillion spent by consumers, $32 billion was due to higher prices, said Adobe. Online inflation, first observed in June 2020, has persisted for 21 consecutive months, it said. “The impact was most notable in 2021, where $22 billion of e-commerce growth was driven by higher prices compared to just $4.7 billion in 2020.” In the first two months of 2022, $3.8 billion in e-commerce growth was driven by higher prices, said Adobe. But inflation didn't deter demand, it said. Online spending in January and February topped $138 billion, up 13.8% from the first two months of 2021, it said: “Adobe expects consumers could pay as much as $27 billion more online for the same amount of goods due to inflation.”