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Reading: Supply Chain Crisis Hits Home, With 2 Billion Out-Of-Stock Messages In October
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Supply Chain Crisis Hits Home, With 2 Billion Out-Of-Stock Messages In October
The Tycoon Herald > Business > Supply Chain Crisis Hits Home, With 2 Billion Out-Of-Stock Messages In October
Business

Supply Chain Crisis Hits Home, With 2 Billion Out-Of-Stock Messages In October

Tycoon Herald
By Tycoon Herald 4 Min Read Published November 9, 2021
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Container ships waiting to be unloaded offshore at tje Port of Los Angeles Oct. 13, 2021. (Allen J. … [+] Schaben / Los Angeles Times via Getty Images)

Los Angeles Times via Getty Images

U.S. consumers received over 2 billion out-of-stock messages in October while shopping online, according to the latest holiday shopping data from the Adobe Digital Economy Index.

“Consumers are beginning to understand the real impact of the supply chain challenges” with the dramatic increase in out-of-stock notices from online retailers, Taylor Schreiner, director of Adobe Digital Insights said.

Out-of-stock messages were up 250% in October compared to January 2020. Out-of-stock messages were up 325% compared to October 2019.

Electronics had the highest number of out-of-stocks, followed by jewelry, apparel, home and garden, and pet products.

Despite the high number of out-of-stocks in October, online consumers still managed to spend $72.4 billion in October, 8 % more than a year earlier. So far for the year, online shoppers have spent $680 billion through the end of October, up 9% over the same period in 2020, and up 57% over 2019.

Adobe has predicted that online spending during the holiday months of November and December will hit a record $207 billion this year.

Earlier holiday deals by retailers , and warnings about possible shortages appear to have led to a jump in toy sales in October. Toy sales were up 50% in October compared to September. Sales of video games were up 20% compared to the previous month.

Consumers, Schreiner said, “have begun to adjust their holiday strategy accordingly, with parents shopping for toys earlier.”

Sales of gifts cards were up 20% in October, compared to September, a possible sign that consumers are choosing to give gift cards when a holiday gift is out of stock.

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The top selling toys thus far include pop fidget toys, Got2Glow Fairy Finder by WowWee, and toys based on the children’s animated show Bluey.

Among the top electronics purchases were Oculus Quest 2 virtual reality headset, soundbars, televisions, PlayStation 5, Nintendo Switch, Xbox series 5.

While retailers are offering holiday discounts earlier than ever, the discounts for the most part are smaller than usual, according to the Adobe data. Discounts for electronics averaged 8.7% as of November 6, compared to 13.2% at the same time last year. Discounts for appliances averaged 4.6% compared to 10.2 % a year ago.

Prices for tools and home improvement are up 1,2% this year, compared to a 6.8% discount last year.

Toys, however, are showing discount rates that are double what they were last year, 15.9% currently, compared to 7.5% a year ago.

The Adobe Digital Economy Index is based on Adobe Analytics data reflecting over one trillion visits to U.S. online retailers, 100 million merchandise items and 18 product categories.

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