Surf, Shop, Save
REPORT

Surf, Shop, Save

clock

28.02.2024 - 01:12

CompetitionRetailTechnology

Our new report ‘Surf, Shop, Save’, commissioned by Amazon, explores how online channels have helped to lower the cost of living in Australia. Our report finds that online channels have helped reduce the cost of living pressures for Australians through cost-efficiency and competition effects. Since 2019, prices for online channels have been deflationary, while CPI has grown. When compared to each other, CPI has grown 10.5 percentage points more than prices for online channels for comparable categories of goods. During this time, online channels have also placed downward pressure on prices quoted by offline channels, helping reduce inflation by 0.7 percentage points during its peak in 2022. These effects saved Australian households nearly $3,500 on average since 2019.

Online channels help reduce cost of living pressures for Australians through cost-efficiency and competition effects

The retail sector consists of online and offline channels, with retailers using a mix of both to reach consumers, often within a single purchase journey.

Within this omnichannel retail sector, the cost-efficiency effect of online channels sees the cost savings from reduced handling and improved distribution being passed-on to consumers in the form of competitive prices. The competition effect of online channels sees reduced prices across the broader retail sector due to increased competition and increased consumer choice. This allows consumers to shop around for the best price.

Since 2019, prices for online channels have been deflationary, while CPI has grown

portableText image

When compared to each other, prices of online channels have grown 10.5 percentage points less than CPI for comparable categories of goods.

Annual inflation in Australia was 0.7 percentage points lower than it would otherwise have been thanks to the competition effect of online channels

portableText image

Online retail channels have also placed downward pressure on prices quoted by offline channels. Without online channels, inflation in Australia would have been 0.7 percentage points higher during its peak in 2022.

Households have saved nearly $3,500 on average since 2019 thanks to online channels

portableText image

Since 2019, Australian households have saved almost $3,500 on average due to online channels. Just over a quarter of this (26 per cent) was due to the cost-efficiency effect of online channels, and the remaining 74 per cent was due to the competition effect. The largest cost savings was from expenditure on recreation and culture.

Read the full report here.

Read our latest posts

Superannuation and climate change: Better returns for a better climate
ClimateSuperannuation

Superannuation and climate change: Better returns for a better climate

Mandala's report, 'Superannuation and climate change: Better returns for a better climate' in partnership with Future Super, examines the economic impact of market failures in superannuation performance standards. It identifies opportunities to unlock long term economic uplift through reform of these standards. Climate change will reallocate capital across the economy. Australia’s $3.4 trillion of superannuation savings will be impacted by this transition and determined by Australia's policy settings. There is significant opportunity for regulatory reform that drives returns and facilitates a broader role for the superannuation industry within the transition to net zero – and more particularly to address the market failures and time inconsistency that emerge from current regulatory design choices. Such reforms would recognise the core responsibilities of superannuation and the economic and policy priorities facing Australia.

3 Apr, 2024

Preparing Australia's workforce for Generative AI
WorkforceTechnologyGenerative AIAI

Preparing Australia's workforce for Generative AI

Our new research ‘Preparing Australia’s workforce for Generative AI’ in partnership with LinkedIn, examines the potential influence generative AI could have on Australia’s workforce. Our report finds that generative will transform the workplace for 7.2 million Australians by creating opportunities for productivity gains. The influence of generative AI is expected to vary significantly across industries, with the effect expected to be greatest amongst service-related sectors, which are also large sources of employment in Australia.

21 Mar, 2024

Surf, Shop, Save
CompetitionRetailTechnology

Surf, Shop, Save

Our new report ‘Surf, Shop, Save’, commissioned by Amazon, explores how online channels have helped to lower the cost of living in Australia. Our report finds that online channels have helped reduce the cost of living pressures for Australians through cost-efficiency and competition effects. Since 2019, prices for online channels have been deflationary, while CPI has grown. When compared to each other, CPI has grown 10.5 percentage points more than prices for online channels for comparable categories of goods. During this time, online channels have also placed downward pressure on prices quoted by offline channels, helping reduce inflation by 0.7 percentage points during its peak in 2022. These effects saved Australian households nearly $3,500 on average since 2019.

28 Feb, 2024

Climate Risk Index for the Australian energy sector
ClimateEnergy transition

Climate Risk Index for the Australian energy sector

Mandala Partners (Mandala) in conjunction with Zurich Financial Services Australia (Zurich) has produced Australia’s first Climate Risk Index for the national energy generation sector. This report highlights the growing risk of climate change to the grid, how that risk is spread across the grid, and high-level options for mitigating those risks. More than 25% of Australia’s power generation assets are in the three highest categories for climate change risk.

20 Feb, 2024

Loading...