• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

3

Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

3

Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45

Why Adobe Says It’s Cheaper to Shop Online

By
Jonathan Chew
Jonathan Chew
Down Arrow Button Icon
By
Jonathan Chew
Jonathan Chew
Down Arrow Button Icon
April 15, 2016, 9:29 AM ET
Amazon.com Illustrations Ahead Of Earnings Figures
The Amazon.com Inc. Prime logo is displayed on computer screens for a photograph in Tiskilwa, Illinois, U.S., on Wednesday, April 23, 2014. Amazon.com Inc. is scheduled to release earnings figures on April 24. Photographer: Daniel Acker/Bloomberg via Getty ImagesPhotograph by Daniel Acker—Bloomberg via Getty Images

Convenience has been the primary reason for those who prefer shopping online to visiting brick-and-mortar stores. Now, add cheaper prices to the cart.

According to Adobe’s newly-conceived Digital Price Index, which tracked the movement of around 1.7 million online transactions, the prices of a range of items on the Web have fallen in comparison to the Consumer Price Index, the traditional measure of the price change for a basket of goods. The CPI usually follows fewer goods online, reported the New York Times, and also checks for price fluctuations based on periodic store visits.

Adobe’s new index focuses solely on online purchases, and its data indicates there’s a deflation of prices happening online, especially among electronics. The online prices of computers, for example, fell by a cumulative 12.8% from February 2015 to February 2016, said Adobe. In the same period, the CPI’s data reported a drop of 7.8%.

The drop in television prices are even more marked: between February 2015 and February 2016, Adobe’s DPI shows cumulative deflation of 20.3%, compared with a 15% drop according to the CPI. For appliances such as fridges, ovens and vacuums, online prices dropped 5.7% over the same period, compared with a 2.7% decline in the CPI.

A deeper look into dropping prices online could also help give insight as to why the current inflation rate has been hovering at 1%, and cannot find its way upwards. Austan Goolsbee, a former chairman of President Obama’s Council of Economic Advisers, and who helped Adobe develop its index, went as far as saying that the CPI could be underestimating deflation.

“Large parts of the economy, a fast-growing part, is now e-commerce-oriented,” Goolsbee told the Times. “And Amazon’s prices are much cheaper, and if everybody’s doing their shopping on Amazon (AMZN), then that should properly be taken into account in the inflation rate in a way it isn’t now.” It should be noted, however, that e-commerce retail sales last year accounted for 7.3% of total sales, according to the U.S. Census Bureau.

About the Author
By Jonathan Chew
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

SpaceX’s IPO could be largest in history. Here’s how it compares to previous record-holders
Startups & VentureSpaceX
SpaceX’s IPO could be largest in history. Here’s how it compares to previous record-holders
By Mia OsmonbekovJune 12, 2026
2 hours ago
Mortgage rates today, June 12, 2026
Personal Financemortgages
Mortgage rates today, June 12, 2026
By Glen Luke FlanaganJune 12, 2026
2 hours ago
Current refi mortgage rates report for June 12, 2026
Personal FinanceReal Estate
Current refi mortgage rates report for June 12, 2026
By Glen Luke FlanaganJune 12, 2026
2 hours ago
Current ARM mortgage rates report for June 12, 2026
Personal FinanceReal Estate
Current ARM mortgage rates report for June 12, 2026
By Glen Luke FlanaganJune 12, 2026
2 hours ago
The chaos at CBS News shows the limits of ‘blow it up’ leadership
C-SuiteLeadership
The chaos at CBS News shows the limits of ‘blow it up’ leadership
By Claire ZillmanJune 12, 2026
2 hours ago
Melania launches Trump Accounts for foster kids — and Democratic governors want no part of it
MPWWhite House
Melania launches Trump Accounts for foster kids — and Democratic governors want no part of it
By Fatima Hussein and The Associated PressJune 12, 2026
2 hours ago

Most Popular

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
2 days ago
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Innovation
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
2 days ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
20 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
4 days ago
SpaceX's record IPO has Wall Street torn between a Musk 'holy grail' and a $135-per-share leap of faith
Startups & Venture
SpaceX's record IPO has Wall Street torn between a Musk 'holy grail' and a $135-per-share leap of faith
By Marco Quiroz-GutierrezJune 11, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.