Online Retail Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The e-commerce Retail Industry Report is segmented by Product Category and Region.

Online Retail Market Size

E-Retail Market Summary
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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

Major Players

E-Retail Market Major Players

*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.

E-Retail Market: Number of Internet Users Globally in Billions, 2019-2021

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.

E-Retail Market: E-Commerce Share of Total Fashion Sales, in Percentage, 2018 and 2022

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., Inc., and Amazon Inc.

Online Retail Market Leaders

  1. Alibaba Group Holdings Ltd

  2. Walmart Inc.

  3. Inc.

  4. Amazon Inc.

  5. eBay

*Disclaimer: Major Players sorted in no particular order

E-Retail Market Concentration

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. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Industry Attractiveness - Porters' Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitutes

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Insights on Technology Innovation

    7. 4.7 Impact of COVID-19 on the Market


    1. 5.1 By Product

      1. 5.1.1 Home Appliances and Electronics

      2. 5.1.2 Clothing, Footwear, and Accessories

      3. 5.1.3 Food and Personal Care

      4. 5.1.4 Furniture and Home Decor

      5. 5.1.5 Other Products

    2. 5.2 By Geography

      1. 5.2.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.2.2 Europe

        1. Germany

        2. France

        3. Italy

        4. Spain

        5. Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. China

        2. Japan

        3. Australia

        4. India

        5. South Korea

        6. Rest of Asia-Pacific

      4. 5.2.4 Middle-East and Africa

        1. Saudi Arabia

        2. Egypt

        3. United Arab Emirates

        4. Rest of Middle East and Africa

      5. 5.2.5 South America

        1. Argentina

        2. Colombia

        3. Rest of South America


    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Amazon Inc.

      2. 6.2.2 eBay

      3. 6.2.3 Alibaba Group Holding Ltd

      4. 6.2.4 JD.Com Inc.

      5. 6.2.5 Flipkart

      6. 6.2.6 Ikea

      7. 6.2.7 Walmart Inc.

      8. 6.2.8 Zalando

      9. 6.2.9 Groupon Inc.*

    3. *List Not Exhaustive


Online Retail Industry Segmentation

E-retail allows customers to buy services and products from sellers via the Internet. A complete background analysis of the market, which includes an assessment of emerging trends by segments and regional markets, significant changes in market dynamics, and a market overview, is covered in the report. 

The e-retail market is segmented by product (home appliances and electronics, clothing, footwear and accessories, food and personal care, furniture and home decor, and other products) and by geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report offers market size and forecasts in value (USD billion) for all the above segments.

By Product
Home Appliances and Electronics
Clothing, Footwear, and Accessories
Food and Personal Care
Furniture and Home Decor
Other Products
By Geography
North America
United States
Rest of North America
Rest of Europe
South Korea
Rest of Asia-Pacific
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Rest of Middle East and Africa
South America
Rest of South America

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Online Retail Market Research FAQs

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.

In 2023, the E-Retail Market size is expected to reach USD 5.90 trillion.

Alibaba Group Holdings Ltd, Walmart Inc., Inc., Amazon Inc. and eBay are the major companies operating in the E-Retail Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).

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.

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