Economy
10 April
Ecommerce prices are in deflation, paced by electronics, home goods
Inflation cooled for groceries and personal care items in March, according to the Adobe Digital Price Index.

Inflation cooled for groceries and personal care items in March, according to the Adobe Digital Price Index.
As inflation slows down across the economy, online prices continued to fall for the seventh straight month in March.
While some discretionary categories are seeing relief, consumers may continue to feel the price increases. That’s because ecommerce inflation is remaining stubborn on the way down in key categories like grocery, pet products and apparel.
The Adobe Digital Price Index showed the following data for March:
Here's a breakdown of prices in key categories:
The DPI showed marked price drops in key discretionary categories. This offers signs that consumers won’t see as much sticker shock when they face a choice about a product that goes beyond a basic need.
Electronics, which is the largest ecommerce category, saw prices fall 12.9% year-over-year, and decline 1.3% month-over month. This shows continued staying power for electronics price deflation, even after the sharp discounts of the holiday season.
Toy prices fell 6.6% year-over-year, and 1.2% month-over-month.
Home goods prices also fell. Furniture and bedding prices were down 0.9% year-over-year, and fell 0.3% month-over-month. That’s the second straight month that prices feel on an annual basis, following a 33-month string of price increases. Appliances and home/garden products each fell 4.9% year-over-year.
Demand for furniture remained high despite the price increases. Adobe previously noted that February 2023 saw a 12.9% year-over-year increase in spending for home furnishings, following a 10.2% year-over-year increase in 2022.
“Consumers have become increasingly comfortable buying furniture online, after a pandemic where many wanted to spruce up their living spaces and had no choice but to tap ecommerce,” Adobe notes.
In all, 10 of the 18 categories tracked by Adobe showed price decreases for the year.
Yet consumers are still facing tough choices. Key categories that reflect the products consumers need for day-to-day life are still showing inflation, even as the price increases cool.
Grocery prices were up 10.3%, and rose 0.4% month-over-month. This is the latest slowdown in the category, falling off from an annual peak of 14.3% in September. Yet, as with the Consumer Price Index, it remains true that consumers are paying more for food. Still, the price increases aren't stopping online grocery from picking up. This category surged to 26.7% year-over-year growth in February, following 10.2% annualized growth in 2022. What became a necessity during the pandemic is now a choice consumers are making for convenience.
Personal care items saw prices rise 4.4% year-over-year, while falling 1.5% on a monthly basis. This carries on price increases in the category for a 16th straight month, but was also a smaller increase than February, when prices rose 6.1%.
Apparel prices rose 6.6% year-over-year, and 1.8% month-over-month. This is an increase from February, but Adobe noted that there has been cooling overall in the category in recent months. A year ago, apparel prices were up 16.7% in February 2022.
Pet product prices rose 11.2% on an annual basis, and 1.9% month-over-month.
The bottom line: Inflation remains a mixed bag in ecommerce, but overall there are plenty of signs that prices are trending down from their peak. With prices for essentials still going up, brands and retailers must be mindful that consumers will be weighing discretionary purchases carefully, even as lower prices help to take some of the edge off of the decision. It's important to zoom out and remember that inflation hasn't completely curbed demand, especially in top ecommerce categories. All signs indicate that consumers are still shopping, so a strong brand and execution can help light the way to sales.
Dealboard has funding and M&A updates from ecommerce aggregators and forecasting software.
Hunter is joining ABG's portfolio. (Courtesy photo)
This week, the aggregator space is active with M&A, IKEA is ready to roll out newly-purchased warehouse management software and Authentic Brands Group acquired a boot icon. Plus, there’s new investment to report for YouTube influencer Emma Chamberlain’s coffee brand and retail forecasting.
Here’s a look at the latest deals:
Chamberlain Coffee, the consumer brand founded by YouTube influencer Emma Chamberlain, raised $7 million in new funding.
The financing included backing from existing investors including Blazar Capital, Chamberlain and United Talent Agency. New investors include Volition Capital, Electric Feel Ventures, L.A. Libations and Noah Bremen, founder of PLTFRM.
The new funding follows the launch of a Ready-to-Drink (RTD) product and coffee pods. Previously, the brand raised a Series A in August 2022.
"Creating a uniquely inviting coffee brand has been my dream for so long now, and having key investors back us allows us to build Chamberlain Coffee in ways that feel fresh and exciting,” said Chamberlain, in a statement. “There are so many products I am eager to develop and projects I'm excited to get working on. With such an incredible team and group of investors I am more excited than ever to see what the future holds for Chamberlain Coffee."
Impact Analytics, a software company for retail supply chain and merchandise planning, raised new funding from Vistara Growth.
The new investment, the amount of which was not disclosed, comes after Impact raised funding in February 2021 and October 2022 from Argentum.
The funding will help Impact Analytics further develop its Impact Analytics SmartSuite product portfolio, which is designed to help optimize forecasting, merchandising and end-to-end lifecycle pricing. Rather than the traditional forecasting approach of basing decisions on the preceding year, Impact Analytics applies a model that includes 150 variables from internal and external sources, while combining recency and history. Clients include BJ's Wholesale Club, Dick's Sporting Goods, Puma and Tapestry.
Selva Ventures, a venture capital firm focused on consumer brands that promote healthier living, closed its second fund at $34 million, TechCrunch reported.
With the new funding, Selva will invest in brands across categories including health, wellness, beauty and personal care. The fund expects to write checks of $1-2 million in seed and Series A startups, while assisting in areas like finance, operations and retail partnerships.
Backers of the second fund include Unilever Ventures, PagsGroup and Obelysk.
Nautica and Forever 21 owner Authentic Brands Group acquired the intellectual property of Hunter, a 160-year-old British outdoor lifestyle brand known for its Wellington boots.
With the deal, ABG appointed longtime partners Batra Group and Marc Fisher to execute retail and ecommerce operations, as well as continue to expand the brand in the UK and U.S., respectively.
“At the intersection of fashion and outdoor, Hunter introduces another elevated global brand to Authentic’s diverse Lifestyle portfolio,” said Authentic CEO Jamie Salter, in a statement.
Terms of the deal were not disclosed.
The investment arm of IKEA parent Ingka Group acquired the warehouse management software platform Made4Net.
As a result of the deal, Made4Net’s software will be deployed across IKEA’s 482 stores and fulfillment centers. Made4Net will continue to operate as an independent subsidiary of Ingka, with a headquarters in New Jersey. CEO Duff Davidson will remain at the helm of the company.
“Our business currently requires a better fulfillment operations system with more accurate data that better supports handling for our customers,” said Tolga Öncu, head of retail at Ingka Group, in a statement. “Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to meet us.”
European ecommerce aggregator SellerX acquired Elevate Brands, a U.S.-based aggregator.
The combined companies will be known as SellerX Group. It will comprise a portfolio that includes 80 Amazon-native private label consumer brands in categories including sports and outdoors, home, mobile accessories, pets and consumables. The portfolio will span over 40,000 products.
With the deal, SellerX Co-CEOs Philipp Triebel and Malte Horeyseck will lead SellerX Group, while Elevate Brands cofounders Ryan Gnesin, Jeremy Bell and Robert Bell will remain in key leadership positions.
“This acquisition combines our know-how and diversified portfolios of strong brands with a market-leading technology platform and strong operational infrastructure,” said Triebel, in a statement. “By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry.”
Ecommerce aggregator Society Brands acquired Wolf Tactical, a tactical gear company.
Founded in 2017 by Tim Wu, Wolf Tactical makes products including DC belts, range belts to weighted vest and tactical backpacks.
"I started Wolf Tactical by myself as a side hustle with very limited knowledge of business and entrepreneurship. A combination of hard work and relentless learning allowed me to build it into a multi-million-dollar business," said Wu who will remain as brand president, in a statement. "With the help of Society Brands, I have access to untapped potential that I would not be able to achieve by myself.”