Online prices decreased 1.9% year over year in November, reflecting the largest decrease in prices in the past 2.5 years, according to data from the Adobe Digital Price Index.
The lower prices in November also reflect a 3.2% decrease from October, marking the third consecutive month in which online prices decreased.
Discounts during the Cyber 5 period of Thanksgiving through Cyber Monday helped drive the lower prices, according to Adobe Analytics. Specifically, online toy prices decreased 7.7% year over year and 4.2% month over month. Online prices in the sporting goods category decreased 5.7% year over year and 4.3% month over month.
Adobe uses the Fisher Price Index to track ecommerce prices, as well as its data based on 1 trillion visits to retail sites and over 100 million SKUs in 18 product categories.
On a year-over-year basis, nine categories registered online price increases and nine categories registered decreases.
Standout categories including electronics, with online prices decreasing 13.4% year over year, which is the largest year-over-year drop since 2014. This is notable, according to Adobe, because the electronics category comprises a large share of online sales.
“Price movements in electronics have a significant impact on overall inflation online,” Adobe said in a release.
Computer prices also decreased 18% year over year, which again was the largest online price decrease since 2014. This is the 23rd consecutive month online prices decreased in the computer category.
Online prices increase in non-promotional categories, but at a slower rate
15 of the 18 categories Adobe tracks had month-over-month price decreases, again driven by the Cyber 5 sales.
However, online prices in categories that are not typically gifts, such as grocery, are still increasing. Grocery prices increased 13.7% year over year in November and increased 0.3% from October.
But, this 13.7% increase is a slowdown in growth from August, September and October, when online grocery prices increased more than 14% year over year in each month, according to Adobe.
The two other categories that incurred price increases on a month-over-month basis were non-prescription drugs, and medical equipment and supplies.
Inflation is cooling down in other non-promotional categories, such as pet products, according to Adobe. Online pet product prices were up 11% year over year in November, but down 0.2% month over month.
“While the November drop in online prices was driven by major discounting on days including Cyber Monday and Black Friday, we also see signs of overall ecommerce inflation cooling,” said Patrick Brown, vice president of growth marketing and insights at Adobe, in a release. “In categories such as groceries and personal care, which are not promotional in nature, we are seeing price increases come down from their heights in late summer and early fall.”
Inflation is still top-of-mind for online holiday shoppers, especially over the Cyber 5 weekend, according to a Digital Commerce 360 and Bizrate Insights survey of 1,095 online shoppers. Half of shoppers said high prices and 46% of shoppers said inflation impacted their Cyber 5 shopping. These were the top two responses.
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