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

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

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.

Key Highlights

• 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.

Key Market TrendsIncreasing 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.

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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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