In July, prices in online stores in the United States decreased by 2% compared to June and by 1% compared to July 2021. This is the first online price cut in the US in 25 months. Such data are provided in the price index compiled by the company Adobe.
In different product categories – and there are 18 of them in the index – price changes in July were not the same. Thus, electronics prices fell in July by 9.3% compared to July 2021, returning to pre-pandemic levels. Prices for computers, according to Adobe, fell by 10.22% over the year, for toys – by 8.22%, for books – by 3.49%, for jewelry – by 3.1%. Sports goods (by 1.93%) and clothing (by 1.02%) also fell in price. Prices in key categories of electronics and apparel are falling as online retailers have restocked and consumers are limiting spending, Adobe experts said. And as Adobe VP Patrick Brown points out, “This is at least a little bit of a relief for consumers in the face of a steady increase in food prices in both physical and online stores.”
In the remaining 11 categories, online prices increased in July. The most significant growth was in the category of groceries – by 13.4%. Prices for pet products also increased markedly – by 12.61%, and this is a record price increase for the category, tools and repair goods – by 10.84%, as well as medical equipment and drugs – by 6.86%.
Adobe estimates that consumers spent $73.7 billion online in July. This is $400 million less than in June, but 20.9% more than a year earlier. The record for online sales in July was the week of Prime Day sales, organized annually by Amazon. Consumers spent $22.4 billion on online shopping this week alone, up 6.1% from a year earlier.