Business

US consumers will spend record $1 trillion online in 2022 – report

An Amazon worker tows a delivery truck full of packages during its annual Prime Day promotion in New York
FILE PHOTO: An Amazon delivery man pulls a delivery truck full of packages during its annual Prime Day promotion in New York City, the United States, on June 21, 2021. REUTERS/Brendan McDermid

March 15, 2022

(Reuters) – US consumer spending on e-commerce is expected to hit a record $1 trillion this year thanks to the pandemic-driven shift to online shopping, a report by Adobe Analytics showed on Tuesday.

The forecast represents a 13% jump from 2021 and follows total spending of $1.7 trillion over two years of the COVID-19 crisis as of March 2020.

“The pandemic was a momentous moment for e-commerce. It not only accelerated growth by nearly two years, but impacted the types of goods consumers are willing to buy online,” said Vivek Pandya, senior analyst at Adobe Digital Insights.

For 2022, the National Retail Federation (NRF) forecasts non-store and online sales to grow between 11% and 13% to a range of $1.17 trillion to $1.19 trillion.

The trade association expects total retail sales excluding auto dealerships, gas stations and restaurants to rise between 6% and 8%.

“We should see sustained growth this year as consumers are confident in continuing this expansion despite risks related to inflation, COVID-19 and geopolitical threats,” said Matthew Shay, NRF’s chief executive officer.

Online grocery spending has skyrocketed during the pandemic, rising 7.2% over the past year after more than doubling in 2020, Adobe said, as consumers preferred the security and convenience of home deliveries.

This was offset by modest growth in apparel, while electronics consolidated its position as the leading online shopping category.

“Ecommerce is being reshaped by grocery shopping, a category with minimal discounts compared to older categories like electronics and apparel,” said Patrick Brown, vice president of growth marketing and insights at Adobe.

The forecast was also supported by signs of resilient demand even as product prices rise.

After e-commerce sales of $32 billion last year, inflation would account for up to $27 billion in online spending in 2022, Adobe said.

(Reporting by Deborah Sophia in Bengaluru; Additional reporting by Praveen Paramasivam; Editing by Aditya Soni and Devika Syamnath)

https://www.oann.com/u-s-consumers-to-spend-record-1-trillion-online-in-2022-report/?utm_source=rss&utm_medium=rss&utm_campaign=u-s-consumers-to-spend-record-1-trillion-online-in-2022-report US consumers will spend record $1 trillion online in 2022 – report

DUSTIN JONES

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