United States E-Commerce Market

United States E-Commerce Market:

The United States e-commerce market size reached US$ 1,087.54 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 2,083.97 Billion by 2032, exhibiting a growth rate (CAGR) of 6.80% during 2024-2032. The increasing internet penetration, convenience-driven consumer preferences, widespread mobile adoption, a competitive landscape, and evolving logistics infrastructure represent some of the key factors driving the market.

United States E-Commerce Market Analysis:

• Major Market Drivers: The rising penetration of smartphones, tablets, and high-speed internet connectivity coupled with widespread integration of advanced digital technologies is escalating the United States e-commerce market growth.
• Key Market Trends: The proliferation of e-commerce startups along with the ongoing technological advancements, such as user-friendly interfaces, personalized recommendations, and efficient logistics are expected to augment the demand for e-commerce in the United States.
• Challenges and Opportunities: Some of the primary factors hampering the market growth include increasing competition among key players, supply chain disruptions, issues with returns and refunds, regulatory compliances, etc. However, rapid technological advancements, rising internet penetration, and shifting consumer preferences towards online shopping present significant growth opportunities for e-commerce businesses in the country.

United States E-Commerce Market Trends:

Increasing Trend of Online Shopping

Online shopping offers unparalleled convenience, allowing consumers to browse and purchase products from the comfort of their homes or on the go. With 24/7 access to chatbots, shoppers can make purchases at their convenience, without the constraints of store hours or location. For instance, according to a Juniper survey, 47% of consumers were favorable to utilizing chatbots while making online purchases as they provide 24/7 assistance, and by 2023, chatbots generated nearly $112 billion in retail e-commerce sales. Moreover, e-commerce retailers capitalize on seasonal events and holidays by offering themed discounts and special promotions. From Valentine's Day sales to back-to-school discounts, these seasonal campaigns drive traffic to e-commerce platforms. For instance, in 2023, Black Friday online sales in the U.S. increased by 7.5% in 2023 as compared to 2022, recording around US$ 9.8 Billion. Apart from this, e-commerce websites provide tools and features that make it easy for consumers to compare products based on price, features, reviews, and other factors. This transparency allows shoppers to make informed decisions and choose the best option that meets their needs and budget. Such factors are further bolstering the United States e-commerce market revenue.

Rising Adoption of Advanced Technologies

The rising adoption of various advanced technologies is significantly driving the United States e-commerce market demand. The increasing penetration of smartphones and tablets has fueled the growth of mobile commerce. According to the survey conducted by Pew Research in July 2022, nearly 32% of U.S. individuals used smartphones to purchase things online, while 21% used desktops or laptops and 7% used tablets. Consumers are increasingly using their mobile devices to browse, shop, and make purchases online. In addition to this, e-commerce businesses are responding by optimizing their platforms for mobile devices, developing dedicated mobile apps, and implementing mobile-friendly payment solutions. For instance, in March 2024, AliExpress, an international online retail marketplace operated by Alibaba International Digital Commerce Group, made significant platform updates aimed at improving the customer experience in the United States, including faster shipping times, new delivery guarantees, and an updated mobile app for easier catalog browsing. Besides this, AI and machine learning technologies are revolutionizing the e-commerce sector. These technologies enable businesses to personalize the shopping experience, improve product recommendations, optimize pricing strategies, and enhance customer service through chatbots and virtual assistants. For instance, in April 2024, Amazon launched Rufus, an AI-powered shopping assistant that’s been trained on the e-commerce giant’s product catalog as well as information from around the web. Rufus would help customers find products, perform product comparisons, and get recommendations to buy. These factors are further contributing to the United States e-commerce market share.

Integration of AR and VR

The rising integration of Augmented Reality (AR) and Virtual Reality (VR) is one of the key factors driving the demand for e-commerce in the United States. AR and VR technologies allow consumers to visualize products in a more immersive and interactive way. For example, AR applications enable shoppers to virtually try on clothing and accessories, visualize furniture in their home, or see how cosmetics look on their skin. For instance, in April 2024, Veesual, an AI-powered virtual try-on platform for the fashion industry based in Paris, partnered with Eileen Fishes, a women's fashion brand based in the U.S. to integrate its virtual try-on technology into online shopping experience. Similarly, VR experiences can transport consumers to virtual showrooms or simulate real-world environments where they can interact with products before making a purchase. For instance, in February 2024, Joybird, a unit of La-Z-Boy, an American producer and retailer of customized, modern upholstered furniture situated in the United States, announced the complete integration of 3D Cloud Room Scanner technology into its online 3D Space Planner application. Joybird's 3D Cloud Room Scanner technology allows users to produce a blueprint ten times faster than traditional measuring, recreating a room in three dimensions in minutes. In addition, AR and VR enhance customer engagement and satisfaction. These technologies provide a more engaging and memorable shopping experience compared to traditional e-commerce platforms, leading to increased customer retention and loyalty. According to a survey conducted by the Harris Poll in November 2022 in the United States, almost three out of four individuals (73%) said they would find specific online tools or applications helpful, such as virtual try-on technology or room design visualizers, while making online purchases. These factors are further expected to positively influence the United States e-commerce market forecast.

United States E-Commerce Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States e-commerce market report, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on type and transaction.

Breakup by Type:

• Home Appliances
• Apparel, Footwear and Accessories
• Books
• Cosmetics
• Groceries
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes home appliances, apparel, footwear and accessories, books, cosmetics, groceries, and others.

According to the United States e-commerce market overview, the demand for home appliances through e-commerce channels continues to grow steadily. Consumers appreciate the convenience of browsing and purchasing appliances online, especially for large items like refrigerators, washing machines, and dishwashers. E-commerce platforms offer a wide selection of brands, models, and price points, along with customer reviews and product comparisons to aid in decision-making. While apparel, footwear, and accessories are among the popular product categories in the U.S. e-commerce market. Online clothing retailers offer a vast array of options, ranging from casual wear to formal attire, catering to diverse tastes and style preferences. Virtual try-on features, size guides, and flexible return policies help alleviate concerns about fit and quality, driving confidence in online apparel purchases. Despite the rise of digital reading devices, physical books remain in demand in the U.S. e-commerce market. Online bookstores offer a wide selection of titles, including bestsellers, niche genres, and rare editions. E-books also contribute to the demand for digital reading material, with platforms like Amazon Kindle providing access to a vast library of digital books and audiobooks. Moreover, the demand for cosmetics is driven by factors such as convenience, product variety, and competitive pricing. Furthermore, the demand for online grocery shopping has surged in recent years, fueled by factors such as busy lifestyles and convenience.

Breakup by Transaction:

• Business-to-Consumer
• Business-to-Business
• Consumer-to-Consumer
• Others
   

A detailed breakup and analysis of the market based on the transaction has also been provided in the report. This includes business-to-consumer, business-to-business, consumer-to-consumer, and others.

B2C e-commerce transactions involve businesses selling products or services directly to consumers. According to the United States e-commerce market outlook, the demand for B2C e-commerce transactions is driven by factors such as convenience, product variety, competitive pricing, and personalized shopping experiences. While B2B e-commerce transactions involve businesses selling products or services to other businesses. B2B e-commerce encompasses a wide range of industries and products, including wholesale trade, manufacturing supplies, office equipment, and software solutions. The demand for B2B e-commerce transactions is driven by factors such as cost savings, efficiency gains, streamlined procurement processes, and access to a broader supplier base.

Breakup by Region:

• Northeast
• Midwest
• South
• West
   

The report has also provided a comprehensive analysis of all the major regional markets, which include the Northeast, Midwest, South, and West.

According to the e-commerce market statistics, the demand for e-commerce in the Northeast is driven by factors such as high internet penetration rates, urbanization, busy lifestyles, and a strong culture of convenience and technology adoption. While the Midwest region of the United States, which includes states such as Illinois, Ohio, Michigan, and Wisconsin, is known for its manufacturing heritage, diverse economy, and large metropolitan areas like Chicago. The demand for e-commerce in the Midwest is driven by factors such as convenience, access to a wide range of products, and a growing preference for online shopping among consumers. Moreover, the demand for e-commerce in the South is driven by factors such as population growth, urbanization, and the growing disposable incomes of middle-class people. Furthermore, the West region of the United States, which includes states such as California, Washington, Colorado, and Arizona, is known for its innovation, diversity, and outdoor lifestyle. The demand for e-commerce in the West is driven by factors such as tech-savvy consumers, high disposable incomes, and a strong culture of innovation and entrepreneurship.

Competitive Landscape:

The United States e-commerce market report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

United States E-Commerce Market Recent Developments:

• April 2024: Alibaba Group Holdings launched a new shopping e-commerce app with 3D functions designed for the Vision Pro mixed-reality headset in the United States.
• March 2024: AliExpress updated its e-commerce platform by integrating faster shipping times, new delivery guarantees, and an updated mobile app for easier catalog browsing in the United States.
• January 2024: FedEx, based in the United States announced to launch fdx, a data-driven commerce platform that would allow merchants for end-to-end e-commerce solutions. The platform was aimed to help businesses manage their supply chain, sell to customers, and manage deliveries.

United States E-Commerce Market Report Scope:

Key Questions Answered in This Report:

• How has the United States e-commerce market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the United States e-commerce market?
• What is the breakup of the United States e-commerce market on the basis of type?
• What is the breakup of the United States e-commerce market on the basis of transaction?
• What are the various stages in the value chain of the United States e-commerce market?
• What are the key driving factors and challenges in the United States e-commerce market?
• What is the structure of the United States e-commerce market and who are the key players?
• What is the degree of competition in the United States e-commerce market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States e-commerce market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the United States e-commerce market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States e-commerce industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.