Low e-commerce inflation rates benefit consumers
25 May 2012 - 13:17 by Simon Crisp
A report published by the Centre of Economics and Business Research (CEBR), has found that people who shop online will be less impacted by high inflation rates on the high street.
E-commerce prices have risen at a rate of 2.2 per cent within the last half decade, which is far lower than the 6.4 per cent growth rate measured at bricks and mortar retailers.
Meanwhile, the current 3 per cent inflation rate on the high street, which is down from a 3.5 high recorded last month, is significantly above the 0.3 per cent inflation rate experienced via safe shopping online.
CERB spokesperson, Shehan Mohamed, said that, depending on the types of products you purchase, you can get a much better deal online when inflation is taken into consideration.
Everything from food and clothing to household electronics and furniture are subject to this less severe inflation, thanks to e-commerce affordability.
The report cites the significant amounts of competition as being the main reason that the online market space is able to beat the kind of inflation that impacts the high street.
Online retailers realise that there is twice the likelihood that people will part with cash for household items when using e-commerce, which means that prices need to be as appealing as possible, so that they don't look elsewhere.
Of course the report identifies potential issues with the lower inflation rates only being available online, since those consumers who do not have access to e-commerce or do not understand how to harness it, will be left out in the cold.
Close to ten per cent of all goods sales made in the UK now originate from e-commerce sites, which means that there are still plenty of shoppers who do not yet know about the true benefits of buying online.