Research reveals impact of inflation on Amazon’s spending and pricing – WWD


The latest consumer and pricing research from Jungle Scout reveals that inflation has a big impact on prices and consumer habits. The company, which provides services to sellers and brands on Amazon, said in the report that “77% of consumers say their spending has been affected by inflation,” while 72% of respondents are making less. “fun” or impulse purchases.

Other key findings from the report include that 59% of respondents buy from cheaper brands, while 52% only buy discounted or sale products. Jungle Scout also found that 51% of consumers surveyed have switched to buying generic brands, while 42% of respondents cut costs by going without certain products. The research also showed that 38% of respondents said their online spending decreased from the first to the second quarter.

Looking at Amazon price trends, Jungle Scout researchers said the median price of products was up across all categories examined, and increases ranged from 2% (boys’ clothing) to 11% ( for beauty products).

Amazon price analysis by Jungle Scout.

Courtesy image.

For context, the report’s authors described inflation this year as “rapid and severe” and noted that in June inflation hit 9.1% – “the biggest jump in a year on the other since 1981”.

“Amid this, 38% of consumers say their household income is unstable and 34% depend on financial assistance or unemployment benefits,” Jungle Scout noted, adding that for 13% of consumers, “the Their household income actually declined in the first half.”

“This 41-year high rate of inflation means higher costs in everything from raw materials and supplies to labor and shipping rates,” the company said. “As consumers and brands find themselves with dollars that no longer stretch as far, many e-commerce businesses are faced with the difficult task of reducing inventory and/or charging more for products in order to maintain their profit margins. The results are higher prices, less stock available and more hesitant buyers.

The report’s authors also noted that economic sanctions resulting from Russia’s invasion of Ukraine have also driven up costs while creating shortages.

“In China, COVID-19 lockdowns have slowed production of many supplies and products, further compounding supply chain disruptions that began at the start of the pandemic,” Jungle Scout said. “Interest rates have risen to fight inflation, and consumers are paying more for mortgages, auto loans and credit cards, on top of already rising energy and utility costs. All these factors converge in a significant change in buying habits.


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