Inflation can have both positive and negative effects on e-commerce, depending on various factors. However, there are several ways in which e-commerce could potentially grow more strongly due to inflation:

1. Increased price sensitivity: During inflationary periods, consumers become more price-conscious and seek the best deals. E-commerce platforms often offer competitive pricing due to lower operational costs compared to brick-and-mortar stores. As a result, consumers are more likely to turn to online shopping to find better prices and discounts.

For example, during the COVID-19 pandemic, when inflationary pressures were observed in some sectors, e-commerce sales soared globally. Consumers shifted their purchasing habits online to take advantage of competitive pricing and avoid potential price hikes in physical stores.

Reference: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever

2. Wider product selection: E-commerce platforms offer a vast range of products from various sellers, including international options. Inflation can impact the availability and pricing of certain products in physical stores due to supply chain disruptions or increased costs. E-commerce platforms can mitigate these issues by sourcing products from different regions or suppliers, offering consumers a wider selection.

For instance, during periods of inflation, certain goods may become scarce or expensive in local stores. E-commerce platforms can bridge this gap by providing access to a broader range of products, ensuring consumers can find what they need at competitive prices.

Reference: https://www.researchgate.net/publication/339641086_The_Impact_of_Inflation_on_E-commerce

3. Convenience and cost savings: Inflation can lead to rising transportation and fuel costs, which may deter consumers from visiting physical stores. E-commerce provides the convenience of shopping from home, saving time and money on transportation expenses. As inflationary pressures increase, consumers may be more inclined to opt for the cost-saving benefits of online shopping.

For example, in countries experiencing hyperinflation, such as Venezuela, e-commerce has gained popularity as physical stores struggle to maintain stable pricing and supply. Consumers have turned to online platforms to access a wider range of products and avoid the challenges of traditional shopping.

Reference: https://www.researchgate.net/publication/325322901_The_Impact_of_E-commerce_on_Inflation_in_Developing_Countries

4. Increased digital adoption: Inflationary periods can accelerate the adoption of digital technologies, including e-commerce, as businesses and consumers seek efficient ways to navigate economic uncertainties. This can lead to increased investments in e-commerce infrastructure, improved user experiences, and enhanced logistics capabilities.

For instance, during the inflationary period in Argentina, e-commerce experienced significant growth as businesses and consumers adapted to the changing economic landscape. Companies invested in e-commerce platforms, and consumers embraced online shopping to cope with rising prices and limited availability.

Reference: https://www.researchgate.net/publication/322742913_E-commerce_in_Argentina_in_the_Context_of_Inflation_and_Digital_Adoption

While inflation can create challenges for businesses and consumers, e-commerce has the potential to thrive by offering competitive pricing, wider product selection, convenience, and cost savings. These factors, coupled with increased digital adoption during inflationary periods, can contribute to the stronger growth of e-commerce.