IIA: Deep savings available online

By Kimberley Donoghue
PBN Web Editor
Twitter: @ kdonog

PROVIDENCE – The Internet Innovation Alliance said the average American family could save $7,200 per year through discounts and sales only available online.

“Consumers are able to save online due to price comparison, access to deeper markets and the power of group-buying,” said Nicholas J. Delgado, principal of Chicago-based wealth management firm Dignitas and author of the study “The Real Cost of the Digital Divide 2011.”

The IIA issued a release on Oct. 13 citing analysis based on the 2010 Consumer Expenditure Survey, published Sept. 27 by the U.S. Department of Labor.

“Although the average annual expenditures per consumer unit fell 2 percent in 2010, the amount saved remained nearly the same compared to a year ago and the percentage of savings rose in […]: housing, food, gasoline, and nonprescription drugs,” the coalition said.

IIA said the potential annual savings due to broadband connectivity – based on the average U.S. household income before taxes of $62,481 – ranged from 48.8 percent in entertainment; 20 percent in travel; 9.8 percent in housing; 26 percent in food, and 33.7 percent on apparel.