Retail E-Commerce Market Report 2026

The retail e-commerce market size has grown rapidly in recent years. It will grow from $3.64 trillion in 2025 to $4.08 trillion in 2026 at a compound annual growth rate (CAGR) of 11.9%. The growth in the historic period can be attributed to rise of smartphones and internet penetration, growth of e-payment solutions, increasing consumer trust in online transactions, expansion of courier and logistics networks, growth of organized retail chains.

The retail e-commerce market size is expected to see rapid growth in the next few years. It will grow to $6.23 trillion in 2030 at a compound annual growth rate (CAGR) of 11.2%. The growth in the forecast period can be attributed to adoption of AR/VR for shopping experiences, rise of sustainable packaging solutions, integration of AI-driven customer analytics, expansion of social commerce platforms, growth in cross-border e-commerce. Major trends in the forecast period include mobile commerce adoption, personalization & recommendation engines, social commerce growth, omnichannel integration, fast delivery & last-mile logistics.

The rising adoption of smartphones is playing a key role in the expansion of the retail e-commerce sector going forward. A smartphone is a mobile phone that integrates a computer along with features such as an operating system, the ability to run applications, and internet browsing capabilities. Smartphones support retail e-commerce by enabling the purchase and sale of goods and services through this portable wireless device. For example, in October 2023, the Global System for Mobile Communications Association (GSMA), a UK-based global industry organization, reported that 54% of the world’s population, approximately 4.3 billion people, now own a smartphone. As a result, the growing use of smartphones is fueling the growth of retail e-commerce.

Major companies in the retail e-commerce sector are increasingly focusing on implementing e-commerce clouds to enhance their competitive edge. The e-commerce cloud refers to a cloud computing environment that offers scalable and flexible infrastructure, storage, and computing resources to support and host e-commerce applications and websites. For instance, in October 2023, Flipkart, an India-based e-commerce firm, introduced the Flipkart Commerce Cloud. This suite of retail intelligence solutions is designed to assist retailers and e-commerce companies worldwide in expanding their businesses and addressing business needs through intelligent, AI-driven solutions. Each solution is built with artificial intelligence and machine learning, and the system is tested for scalability daily at Flipkart. It aims to help retailers globally grow their businesses and meet their operational needs through these intelligent solutions.

In February 2024, Qoo10, a Singapore-based e-commerce company, acquired Wish from ContextLogic for around $173 million. Through this acquisition, Qoo10 sought to broaden its global marketplace presence and enhance its cross-border e-commerce capabilities by utilizing Wish’s international customer network and mobile-focused shopping platform. Wish is a US-based e-commerce marketplace company that connects budget-conscious consumers with third-party merchants via an online and mobile platform offering a wide variety of consumer products.

Major companies operating in the retail e-commerce market are Walmart Inc., Amazon.com Inc., Apple Inc., Costco Wholesale Corporation, The Home Depot Inc., The Kroger Co, Alibaba Group Holding Ltd., Target Corporation, Dell Technologies Inc., Albertsons Companies Inc, Best Buy Co Inc., Inter IKEA Systems B.V., Hewlett-Packard Company, Macy's Inc., Coupang Corp, Otto GmbH & Co KG, Nordstrom Inc., Wayfair Inc., Rakuten Group Inc., eBay Inc., Shopify Inc., Etsy Inc., IndiaMART InterMESH Ltd., IKEA AB, Ebates Inc., Taobao, Clues Network Pvt Ltd.

Asia-Pacific was the largest region in the retail e-commerce market in 2025. The regions covered in the retail e-commerce market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the retail e-commerce market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.

The retail e-commerce market includes revenues earned by entities by providing services such as food e-commerce, grocery e-commerce, and e-commerce logistics and grocery retail. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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