Between 2017 and 2022, e-commerce kept the inflation rate lower than it would have been otherwise in Italy. With much higher online consumer demand in 2020, the e-commerce effect was even more significant, bringing the average inflation rate to less than 0.20 percent. Additionally, prices on e-commerce sites showed a milder increase compared to equivalent ones offline, bringing the price gap to roughly nine percentage points as of March 2023.
From facts to perceptions
Consumers’ perceptions align with price trends. In Italy, over one in two shoppers opted for e-commerce, thinking it was more convenient than other retail channels. 70 percent of consumers between 25 and 30 years old had this opinion, the highest percentage among all generations. In turn, only 53 percent of respondents aged over 60 believed e-commerce helped them save money.
From perceptions to companies’ action
Italian companies selling online have been affected by inflation, eroding their sale margins in most cases. Nearly one in three online retailers managed to keep prices stable but had to reduce discounts. The implemented measures show some similarities with what French retailers put in place. However, in France over 80 percent of merchants decided to increase online prices.
Average inflation rate with and without e-commerce impact in Italy from 2017 to 2022
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Annual average inflation rate with the effect of the spread of e-commerce
Annual average inflation rate without the effect of the spread of e-commerce
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The European House – Ambrosetti . (July 5, 2023). Average inflation rate with and without e-commerce impact in Italy from 2017 to 2022 [Graph]. In Statista. Retrieved July 27, 2024, from https://www.statista.com/statistics/1413592/e-commerce-impact-on-average-inflation-rate-italy/
The European House – Ambrosetti . "Average inflation rate with and without e-commerce impact in Italy from 2017 to 2022." Chart. July 5, 2023. Statista. Accessed July 27, 2024. https://www.statista.com/statistics/1413592/e-commerce-impact-on-average-inflation-rate-italy/
The European House – Ambrosetti . (2023). Average inflation rate with and without e-commerce impact in Italy from 2017 to 2022. Statista. Statista Inc.. Accessed: July 27, 2024. https://www.statista.com/statistics/1413592/e-commerce-impact-on-average-inflation-rate-italy/
The European House – Ambrosetti . "Average Inflation Rate with and without E-commerce Impact in Italy from 2017 to 2022." Statista, Statista Inc., 5 Jul 2023, https://www.statista.com/statistics/1413592/e-commerce-impact-on-average-inflation-rate-italy/
The European House – Ambrosetti , Average inflation rate with and without e-commerce impact in Italy from 2017 to 2022 Statista, https://www.statista.com/statistics/1413592/e-commerce-impact-on-average-inflation-rate-italy/ (last visited July 27, 2024)
Average inflation rate with and without e-commerce impact in Italy from 2017 to 2022 [Graph], The European House – Ambrosetti , July 5, 2023. [Online]. Available: https://www.statista.com/statistics/1413592/e-commerce-impact-on-average-inflation-rate-italy/
