Inflation Hits Amazon's Apparel Sales Hardest

Amazon-focused data firm Jungle Scout has released a new report detailing the impact of inflation on the e-commerce giant.

Amazon, which recently said it is not exiting the private label market, has seen sales decrease in several categories over the past year, with electronics and apparel seeing the largest drop offs. From July 2021 to July 2022, women’s apparel saw sales drop 42% compared to 2021, and men’s apparel saw a sales decrease of 32% while boys’ and girls’ apparel also fell. 

Electronics dropped 25%, and grocery sales decreased by 10% in the same period. Across the board, all categories tracked by Jungle Scout saw median product prices increase.

“This 41-year high inflation rate means higher costs across the board, from raw materials and supplies to labor and shipping rates,” wrote Jungle Scout’s LeeAnn Whittemore. “As both consumers and brands are left with dollars that no longer stretch as far, many e-commerce businesses are facing the tough call of reducing inventory and/or charging more for products to maintain profit margins. The results are higher prices, less available stock, and more hesitant shoppers.”

Jungle Scout found that 77% of consumers said their spending has been impacted by inflation and 72% are making fewer “fun” or impulse purchases. When it comes to buying items online, 38% said their online spending decreased from Q1 to Q2 2022. A similar number, 32%, said their overall spending decreased from Q1 to Q2 2022.

“Even as inflationary pressures begin to ease, inflation will remain one of the most influential factors in every e-commerce brand’s strategy,” added Whittemore.

The full report from Jungle Scout can be found here.