72% of American Consumers Reduce Spending Due to Rising Inflation

Jungle Scout’s Q1 2022 Consumer Trends Report finds that despite decreased overall spending, consumers continue to invest in home and self-care purchases

Today, Jungle Scout, the leading all-in-one platform for ecommerce sellers, released its Q1 2022 Consumer Trends Report. The quarterly study of 1,000 U.S. consumers reveals spending and ecommerce trends, including how inflation, brand loyalty, and the homebody economy are shaping retail in 2022.

Read More: SalesTechStar Interview With Marc Sachdev, Principal Product Marketing Manager At Impact.Com

Key insights from the report include:

Inflation-weary consumers are reducing their spending.

• 72% of consumers are spending less due to recent inflation, significantly cutting out “fun” or “impulse buys.”
• 38% are spending less overall, and 34% are spending less online, the highest reported figures on decreased consumer spending in at least one year.

Discounts and deals drive online purchases and brand loyalty.  

• 47% of consumers buy from their favorite brands due to affordability — the leading driver of brand loyalty over quality, familiarity, and sustainability.
• 53% make a purchase when presented with a deal, coupon or discount code, and 47% only purchase products that are on sale or discounted.

Read More: Wipro Recognized As ‘Leader’ In 2022 Gartner® Magic Quadrant™ For Outsourced Digital Workplace…

The “homebody economy” will influence spending in 2022. 

• 60% of consumers are spending more time at home, and 50% are more willing to spend money on their homes than before the pandemic.
• 62% have a greater interest in self-care now than pre-pandemic.

“Rising inflation is making consumers keep a tight hold on their wallets and seek out deals and discounts more than ever. As consumers lean into homebody living, categories such as self-care and home will thrive. This presents an opportunity for ecommerce brands to build consumer loyalty with the right products, perks, and promotions to meet shoppers’ needs,” says Michael Scheschuk, Chief Marketing Officer at Jungle Scout.

Additional findings include:

Top increase in spending by category (other than essentials and groceries) 

1. Pet Supplies
2. Clothing
3. Beauty & Personal Care

Preferred online retailers

1. Amazon
2. Walmart
3. eBay
4. Target

About the Report

Between Feb. 4-8, 2022, Jungle Scout conducted an anonymous survey among a panel of 1,000 U.S. consumers about their buying preferences and behaviors. Respondents represent every U.S. state, all genders, and ages 18 to 75+, as well as all employment types and varying income levels.