United States E-commerce Market - Growth, Trends, COVID-19 Impact and Forecasts (2022-2027)

United States E-commerce Market is segmented by B2C eCommerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B eCommerce.

Market Snapshot

united states e commerce market
Study Period: 2020-2027
Base Year: 2021
CAGR: 14.7 %

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Market Overview

The E-commerce market in the United States is expected to register a 14.70 % CAGR between 2022-2027. The market is driven primarily by the growing trend of online shopping, high internet penetration, and increased use of smartphones.

  • The market for e-commerce software in the United States is moderately fragmented, with many major players. Shopify Inc., BigCommerce Holdings, Inc., Squarespace, Inc., and Wix.com Ltd. are profiled, along with their financial information and respective business strategies.
  • Retail e-commerce sales in the United States are expected to grow rapidly in the coming years, rising from approximately $470 billion in 2021 to more than $560 billion in 2025. Amazon is the most popular e-commerce site in the United States. The company also leads the pack in US e-retail sales, with $386 billion expected in retail e-commerce sales in the country in 2021. Other successful shopping websites include eBay, the most popular online marketplace by US sellers, Walmart, Target, and Apple.
  • By 2021, an estimated 90.8 % US population would have accessed the internet from any location and device. The number of active mobile broadband subscriptions per 100 inhabitants proliferates, with an 18.4% year-on-year increase, alongside growth in mobile-cellular and fixed-broadband subscriptions. This rise is due to an increase in consumer income levels. This is expected to boost the business-to-consumer e-commerce industry.
  • Merchants in the United States are adapting to the new landscape and accepting digital wallet financing through popular service suppliers such as PayPal, Google Pay, Amazon Pay, Xerox, Quick Book, and Zendesk. As the number of COVID-19 cases in the United States rises, consumers are going cashless to avoid potential hygiene issues associated with handling coins and notes in this pandemic COVID-19.
  • The COVID-19 pandemic is hastening the online transition as consumers practice social distancing, and e-commerce orders for groceries and medical supplies have become survival and convenient tool for the American family. People are making panic purchases and stocking up on essential grocery items in bulk, increasing the market share of groceries over other products. Furthermore, medicines and medical equipment in the healthcare market see significant sales from United States e-commerce websites. The products are disappearing from local markets due to high demand.

Scope of the Report

The United States E-commerce Market is segmented into B2B E-commerce and B2C E-commerce. By B2C E-commerce, the market studied is further subdivided into beauty & personal care, consumer electronics, fashion & apparel, food & beverage, and furniture & home. The report studies the impact of COVID-19 on the studied market.

By B2C E-commerce
Market size (GMV) for the period of 2017-2027
Market Segmentation - by Application
Beauty & Personal Care
Consumer Electronics
Fashion & Apparel
Food & Beverage
Furniture & Home
Others (Toys, DIY, Media, etc.)
By B2B E-commerce
Market size for the period of 2017-2027

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Key Market Trends

Increasing adoption of technologies

  • The rising presence of mobile shopping in the US e-commerce market is a growing trend. Smartphones are the most popular online purchase in the United States. This large base of mobile buyers affects mobile commerce revenue, which is expected to account for nearly 6% of retail sales in 2021.
  • The increased adoption of technologies such as IoT and machine learning in healthcare is expected to boost the growth of the global B2C e-commerce market over the forecast period. This is due to the rise of low-cost smartphones, the expansion of telecom infrastructure, and an increasing number of product launches with more advanced features. However, rising cybercrime, digital fraud, and other malpractices may stifle market growth shortly.
  • Businesses are looking to improve their conversion rates after 2020 by optimizing their product pages. Furthermore, multichannel selling is another way to get conversions through Facebook advertising or Google shopping ads.
  • The pandemic generated new trends, including an increase in consumption at home, an increase in online shopping in this segment, and an increase in consumers shopping online. During the pandemic, more people bought food online and prepared meals rather than ordering ready-made meals. There is also a trend toward more online payments and less cash-on-delivery due to the risk of infection from banknotes.
  • Digital's share of total retail sales has increased gradually over time. Consumers gradually became more comfortable making online purchases, and retailers improved their fulfillment operations, allowing packages to be delivered more quickly. On the other hand, the pandemic accelerated e-commerce adoption by two years. Before 2020, no year had ever increased digital penetration by more than two percentage points over the previous year.
united states e commerce market share

Competitive Landscape

The E-commerce market in the United States is moderately fragmented. Amazon, Walmart.com, and BestBuy.com are the top online retailers in the united state e-commerce market. In addition, Amazon.com is the dominant player in the US eCommerce market. In 2021, the store had a revenue of US$140 billion. It is followed by walmart.com, which has an income of $53.2 billion, and bestbuy.com, which has a gain of $22.4 billion. The top three stores account for 35% of all online revenue in the United States.

  • April 2022- In a bid to compete with FedEx and UPS, Amazon has opened its Prime delivery service to other merchants. Other online businesses can use its Prime service to deliver goods promptly to their customers.
  • Jan 2022- Bluebash Consulting Private Limited has announced the formation of a new E-Commerce-focused technology consulting division within its Web and Mobile development firm. Sebamed USA, iTrust, and Corsidia are among the company's clients.

Recent Development

  • May 2022- Home Depot announced the formation of Home Depot Ventures, a venture capital fund to promote early-stage startups that improve customer experience and home renovation. Furthermore, the $150 million funds will evaluate investments in businesses at various stages of development, emphasizing early and growth-stage startups that assist Home Depot customers and can scale.
  • April 2022- In the United States, Apple finally offers the tools and accessories needed for self-servicing select iPhones. The company is now selling parts and components for the iPhone 12 series, iPhone 13 series, and the newly released 3rd Generation iPhone SE 2022 smartphones.
  • April 2022- Amazon announced on Wednesday that it will build a solar park in Kent County as one of 37 new renewable energy projects worldwide to use renewable energy to power all of its activities by 2025, five years ahead of schedule.
  • April 2022- Walmart honored Igloo's ancient legacy and commitment to "Made in the USA" with elected officials and prominent executives from both companies in attendance. In honor of this praise, Igloo designed the new Overland Series of coolers exclusively for Walmart, made in the United States.
  • March 2022- Walmart Inc plans to hire more than 5,000 new associates for its tech hubs worldwide during the current fiscal year. Walmart Global Tech, the company's technology division, would be hiring for positions such as cybersecurity professional, product manager, and data scientist.
  • June 2020- Apple's announcements and developments enhance the Apple platform and product experience. From macOS Big Sur, which boasts the most significant design overhaul since the launch of Mac OS X, to watchOS 7, iOS 14's new App Library, and iPadOS 14's expanded handwriting capabilities with Apple Pencil.

Table of Contents


    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Key market trends and share of E-commerce of total Retail sector

    4. 4.4 Impact of COVID-19 on the E-commerce sales


    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand from Apparel and Footwear Industry.

      2. 5.1.2 Rising Adoption of technologies (IOT,ML)

      3. 5.1.3 Penetration of Internet and Smartphone Usage

    2. 5.2 Market Challenges

      1. 5.2.1 High Cost f Internet

      2. 5.2.2 Security Issues

    3. 5.3 Analysis of key demographic trends and patterns related to E-commerce industry in United States (Coverage to include Population, Internet Penetration, E-commerce Penetration, Age & Income etc.)

    4. 5.4 Analysis of the key modes of transaction in the E-commerce industry in United States (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)

    5. 5.5 Analysis of cross-border E-commerce industry in United States (Current market value of cross-border & key trends)

    6. 5.6 Current positioning of country United States in the E-commerce industry in region North America

  6. 6. Market Segmentation

    1. 6.1 By B2C E-commerce

      1. 6.1.1 Market size (GMV) for the period of 2017-2027

      2. 6.1.2 Market Segmentation - by Application

        1. Beauty & Personal Care

        2. Consumer Electronics

        3. Fashion & Apparel

        4. Food & Beverage

        5. Furniture & Home

        6. Others (Toys, DIY, Media, etc.)

    2. 6.2 By B2B E-commerce

      1. 6.2.1 Market size for the period of 2017-2027

  7. 7. Competitive Landscape

    1. 7.1 Company Profiles

      1. 7.1.1 Walmart

      2. 7.1.2 Amazon

      3. 7.1.3 Zara

      4. 7.1.4 Home Depot

      5. 7.1.5 Target

      6. 7.1.6 Apple

      7. 7.1.7 Costco

      8. 7.1.8 Kroger

      9. 7.1.9 Best Buy

      10. 7.1.10 Wayfair

    2. *List Not Exhaustive
  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

**Subject to Availability

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Frequently Asked Questions

The United States E-commerce Market market is studied from 2020 - 2027.

The United States E-commerce Market is growing at a CAGR of 14.7% over the next 5 years.

Amazon, Walmart, Apple, Home Depot, Target, Kroger, Costco, Best Buy are the major companies operating in United States E-commerce Market.

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