Shoppers looking for a good deal online should buy British according to TalkTalk’s latest Digital Price Index (DPI) report. The price of goods sold through international e-retailers are rising four times  when compared to  domestic e-retailers. Buying British Online is therefore not only good for the wider economy but good for your wallet.

The findings come from TalkTalk’s quarterly DPI tracking the rate of inflation of a basket of goods bought online against a comparable basket of goods bought in-store. The report, conducted for TalkTalk by researchers Centre for Economics and Business Research (CEBR), showed that online prices continued to be lower than the high street but that UK e-retailers offer the best value overall. Prices from UK internet retailers are falling by 1.0% year-on-year whilst they are actually rising by 3.4% for international e-retailers due to the weakness in the pound, positive inflation abroad and higher air freight costs.
 
The number of businesses selling online have increased by 29% between 2010 and 2012, a very significant jump. They are also offering greater choice so UK online shoppers don’t need to look farther afield to find the goods they want and at the best price.

TalkTalk’s Tristia Clarke said: “Buying British is a concept that we are familiar with in terms of traditional high street purchasing but the same holds true online. Shopping online has never been more popular in the UK with internet sales rising by 21 per cent in the last year.

The increasing number of UK e-retailers help drive down prices online. TalkTalk offers the best value broadband, telephone, mobile and TV services on the market, by stripping out unnecessary costs and passing the savings to our customers.  Online retailers have a similar model, which is giving them the edge in an increasingly competitive market. It just goes to show that Britain is better off online.”

TalkTalk’s DPI report also showed that the decrease in prices by UK based internet retailers dominated any international increases and caused overall online prices to fall by 0.3% which is in stark contrast to prices on the high street which increased by 1.4%, the 13th consecutive quarterly increase on the In Store Price Comparator Index.

Shehan Mohamed, economist at CEBR continued: “We expect online prices to fall for much of the year as a result of on-going competition on the internet and lower energy prices for businesses which should be passed on to consumers.”

Graham Walker, CEO Go ON UK, which is a new cross-sector partnership to champion organisations and individuals getting online said: "This new research underlines the fact that online shopping offers the best value to consumers. It is encouraging to see more businesses getting online to offer consumers more choice and better deals. However, two thirds of UK SMEs are not online and therefore are missing out on this vibrant marketplace. As online shopping grows in popularity with consumers in search of the best possible offers it is important that we support British SMEs to develop the basic online skills to benefit.”