Adobe analytics notifies that online sales revenue generation increased to 9%. It accounts for almost $204.5 billion. With the covid, people tend to buy gifts online rather than the stores.
Even with the increase in price, 1 trillion shoppers bought things online. There was a hike in price from apparel to groceries. The price of goods rose 0.8% with the demand. Online sales lead to inflation over the year in prices by 3.5%.
Lead Analyst at Adobe Digital Insight, Viven Pandya, says, “It’s definitely a key contributor to the growth, but it’s not the totality of the growth”. He also explains that inflation is one of the factors.
More and more consumers are buying goods online. The categories of goods involving jewelry boosted the sales growth.
It was the “out of stock” feature that cut the uptake. It was the fault of retailers. There were problems in the supply chain. Shipment of merchandise delayed. The sale also suffered.
Lululemon and Abercrombie & Fitch recorded low revenue in the fourth quarter. The reason is the same. Urban outfitters also struggled to accumulate home goods in stock. It used air freight to bring apparel.
From Nov 1 to Dec. 31, 2021, 6-billion out-of-stock messages were up on retailer websites. It was more than 10% from last year. And 253% from 2019. These are some shocking figures in online sales.
Out-of-stock messages open sales for other retailers. Shoppers can always open another site. Supply chain issues lead to a 2% shrink in the salesforce.
The discounts on goods were less this year. The retailers facing higher prices increased the price. In comparison, electronics will be 8 percent compared to 21% in 2020.
Sporting goods were down by 6%. Shoppers enjoyed a discount of 14% last year. It was a good year for online sales.