We got some good news in July regarding the ongoing inflation situation in the United States - consumer prices declined for the first time in four years in June. However, inflation’s impact on prices remains a top concern, with e-commerce giants like Amazon highlighting the cautiousness and deal-seeking behavior of consumers.
While this is a positive sign in the Federal Reserve’s battle against inflation, prices remain elevated. Comparing the most recent consumer price index reading in June 2024 to February 2020, consumer prices remain 21% higher than pre-pandemic levels. The impact of higher prices remains a major concern to consumers, according to the Federal Reserve’s annual Survey of Household Economics and Decision Making (SHED), which reported that 35% of respondents indicated inflation as their main financial worry.
With higher prices impacting purchasing power, consumers are seeking deals wherever they can, with one avenue being online shopping.
Amazon’s North America segment net sales rise to $90 billion
Recently, Amazon reported that its overall net sales for Q2 2024 totaled nearly $148 billion, a 10% increase over Q2 2023, with the North America segment contributing $90 billion – a 9% increase over Q2 2023.
Net sales growth for the North America segment has gradually slowed throughout 2024 dipping below 10% year-over-year in Q2 2024 for the first time since Q1 2022.