Online Retail Market Size
|Study Period||2019- 2028|
|Market Size (2023)||USD 5.90 Trillion|
|Market Size (2028)||USD 7.98 Trillion|
|CAGR (2023 - 2028)||6.23 %|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Online Retail Market Analysis
The E-Retail Market size is expected to grow from USD 5.90 trillion in 2023 to USD 7.98 trillion by 2028, at a CAGR of 6.23% during the forecast period (2023-2028).
The market was impacted by COVID-19 as the travel restrictions were increased. However, after the restrictions were lifted, the market witnessed growth as many people started ordering from online websites. In today's world, the best way to capture consumers' attention and wallet share is to provide seamless, vibrant shopping experiences that go across channels. Today's shoppers have broadly adopted the convenience of shopping online so much that online retail sales continue to grow in double digits, while 'brick-and-mortar' retail sales are either in low single digits or are receding. As a result, retailers are making significant reserves to capitalize on the chance to increase market share and revenues. These investments in e-commerce and related digital capabilities can be improved by targeting new markets around the world.
E-commerce is expected to become the largest retail channel in the world over the forecast period, outpacing sales through retail outlets, such as supermarkets, independent grocers, and apparel and footwear retailers, among others. Global retail e-commerce sales recorded a steady growth of more than 6%. This growth was largely influenced by the Asia-Pacific. In the digitally maturing markets of Central and Eastern Europe, as well as parts of Southeast Asia, e-commerce accounted for less than 5% of the retail sales. The same was true for regions where economic factors had slowed down the e-commerce sales growth, such as Latin America and the Middle East and Africa.
Online Retail Market Trends
Increasing Internet Penetration Driving the Market
E-commerce is expected to become the largest retail channel in the world, accounting for 14% of the total retail sales, outpacing sales through retail outlets, such as supermarkets, independent grocers, and apparel and footwear retailers, among others. The growth of the e-commerce sector is expected to be supported by rising internet penetration and smartphone use. Consumer preferences shift toward online buying as the internet and cell phones become more widely used. Online retail is growing due to the increasing usage of smartphones and tablets worldwide. People can shop on their phones owing to technological advancements such as branded shopping apps, 5G wifi, and social shopping. On several e-commerce platforms, brands count on virtual shopping and experimenting with augmented and virtual reality retail. Consumers have no limits in the metaverse, a 3D virtual reality. People from all across the world can engage with products in a metaverse, irrespective of their location.
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Consumers Buying Fashion Online Driving the Market
Fashion is the second-largest retail category after grocery. The shift toward e-commerce is a significant, palpable movement in most economies. A quarter of spending on clothing, accessories, and footwear (fashion) already occurs online, and it is still rapidly growing. The penetration rate of buying fashion online is roughly twice that of the overall retail sales. Online marketplaces, like Amazon, are key purchase influencers in a fashion shopper's purchase journey. Shoppers are spending more time on websites to discover and research products, providing retailers with insights into buyers' purchase decisions. Innovations such as artificial intelligence and machine-learning tools allow retailers to leverage this wealth of consumer data toward responsive design and better product recommendations.
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Online Retail Industry Overview
The report provides an overview of the major international players operating in the e-retail market. Currently, some of the major players are dominating the sector in terms of revenue share. However, minor companies (mid-size and small) are focusing on improving their presence by securing new contracts and entering new markets. Some key players include eBay, Alibaba Group Holdings Ltd, Walmart Inc., JD.com Inc., and Amazon Inc.
Online Retail Market Leaders
Alibaba Group Holdings Ltd
*Disclaimer: Major Players sorted in no particular order
Online Retail Market News
February 2022: Amazon announced the opening of a new German logistics center in Kaiserslautern, Rhineland-Palatinate; it started operations in the autumn of 2022. Amazon will create more than 1,000 attractive jobs within the first year of operation and offer competitive wages and benefits with the new logistics center. Amazon continues to expand its German logistics network to meet consumer demand and expand product selection.
January 2022: Walmart Mexico, through its Board of Directors, announced that it is considering strategic alternatives regarding its operations in El Salvador, Honduras, and Nicaragua, focusing efforts and capital on its main businesses and geographies. These alternatives could include but are not limited to possible joint ventures, partnerships or strategic alliances, a sale, or other transactions.
Online Retail Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porters' Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Technology Innovation
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product
5.1.1 Home Appliances and Electronics
5.1.2 Clothing, Footwear, and Accessories
5.1.3 Food and Personal Care
5.1.4 Furniture and Home Decor
5.1.5 Other Products
5.2 By Geography
5.2.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.2.4 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 United Arab Emirates
220.127.116.11 Rest of Middle East and Africa
5.2.5 South America
18.104.22.168 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Amazon Inc.
6.2.3 Alibaba Group Holding Ltd
6.2.4 JD.Com Inc.
6.2.7 Walmart Inc.
6.2.9 Groupon Inc.*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Online Retail Market Research FAQs
How big is the E-Retail Market?
The E-Retail Market size is expected to reach USD 5.90 trillion in 2023 and grow at a CAGR of 6.23% to reach USD 7.98 trillion by 2028.
What is the current E-Retail Market size?
In 2023, the E-Retail Market size is expected to reach USD 5.90 trillion.
Who are the key players in E-Retail Market?
Alibaba Group Holdings Ltd, Walmart Inc., JD.com Inc., Amazon Inc. and eBay are the major companies operating in the E-Retail Market.
Which is the fastest growing region in E-Retail Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in E-Retail Market?
In 2023, the North America accounts for the largest market share in E-Retail Market.
Internet Retail Industry Report
Statistics for the 2023 Internet Retail market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Internet Retail analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.