Retail E-Commerce Global Market Report 2024

The retail e-commerce market size has grown rapidly in recent years. It will grow from $6.23 billion in 2023 to $6.87 billion in 2024 at a compound annual growth rate (CAGR) of 10.3%. The growth observed in the historic period can be ascribed to various factors, including consumer convenience, the widespread expansion of internet access, evolving consumer preferences, the globalization of markets, and effective promotional strategies.

The retail e-commerce market size is expected to see rapid growth in the next few years. It will grow to $10.7 billion in 2028 at a compound annual growth rate (CAGR) of 11.7%. Anticipated growth in the retail e-commerce sector during the forecast period is driven by various factors. Mobile commerce (m-commerce) growth will be significant, reflecting the increasing use of mobile devices for online shopping. Consumers will seek personalized shopping experiences, indicating a trend toward more tailored and individualized services. Sustainable practices in e-commerce, including environmentally friendly initiatives, will gain importance as consumers become more conscious of their environmental impact.

The growth of the retail e-commerce market is significantly influenced by the increasing use of smartphones. A smartphone, defined as a cellular device with an integrated computer, operating system, software application capabilities, and web browsing features, plays a pivotal role in facilitating the buying and selling of goods and services in the retail e-commerce sector. For instance, as per Oberlo, a German drop shipping company, the global smartphone user count reached an estimated 6.6 billion in 2022, reflecting a 4.9% annual increase. This surge in smartphone usage is a key driver for the expansion of the retail e-commerce market.

The rising rate of internet user penetration is anticipated to propel the growth of the retail e-commerce market. Internet users, individuals who have accessed the web in the preceding three months, significantly contribute to online sales, influence purchasing decisions through reviews and recommendations, and contribute to the overall development of the digital marketplace. For example, according to the Canadian Internet Use Survey 2022 by Statistics Canada, internet usage among Canadians aged 15 and older increased from 92% in 2020 to 95% in 2022. Notably, Canadians aged 75 and older experienced the most substantial growth, rising from 62% in 2020 to 72% in 2022. Hence, the increasing rate of internet user penetration is a driving force behind the growth of the retail e-commerce market.

The retail e-commerce market is witnessing a prominent trend in technological advancement. Major players in this sector are increasingly adopting cutting-edge technologies such as augmented reality, virtual reality, artificial intelligence, and machine learning to elevate user experiences and gain a competitive advantage. One illustrative example is Avataar, an India-based 3D and augmented reality company, which introduced a single-click integration solution for online retailers. This out-of-the-box product seamlessly integrates with e-commerce platforms such as Shopify and BigCommerce, offering consumers an immersive 3D augmented reality purchasing experience. Avataar's Supernova, a computer vision and AI-powered 3D content creation platform, enables retailers to swiftly generate large-scale 3D product catalogs. Through its proprietary technology, Avataar scans a merchant's existing product inventory within hours, creating photorealistic, life-size 3D enhancements. The platform also facilitates end-to-end workflow management, encompassing quality checks and live hosting.

In the competitive landscape of the retail e-commerce market, major corporations are intensifying their focus on introducing e-commerce clouds. These clouds, defined as cloud computing environments, provide scalable and flexible infrastructure, storage, and computing resources to support and host e-commerce applications and websites. For example, in October 2023, Flipkart, an India-based e-commerce giant, launched the Flipkart Commerce Cloud. This suite of retail intelligence solutions aims to assist global retailers and e-commerce companies in business growth and problem-solving through intelligent, AI-driven solutions. Each solution within this suite is crafted using artificial intelligence and machine learning, regularly undergoing scale testing at Flipkart. The system is designed to empower retailers worldwide in addressing business needs through intelligent, AI-driven solutions.

In October 2022, The Kroger Co., a prominent US-based grocery retailer and retail e-commerce company, acquired Albertsons Companies, Inc. for $25 billion. This strategic move is expected to enhance Kroger's size and retail capabilities in the United States. Albertsons Companies, Inc., the acquired entity, is a US-based grocery retailer and retail e-commerce company.

Major companies operating in the retail e-commerce market report are Walmart Inc., Amazon.com Inc., Apple Inc., Costco Wholesale Corporation, The Home Depot Inc., The Kroger Co., Alibaba Group Holding Ltd., Meta Platforms Inc., 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., BBC Worldwide Ltd., Shopify Inc., Etsy Inc., IndiaMART InterMESH Ltd., IKEA AB, Ebates Inc., Taobao, Clues Network Pvt. Ltd., Infobae Americas.

Asia-Pacific was the largest region in the retail e-commerce market in 2023. The regions covered in the retail e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the retail e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of retail e-commerce encompass pure marketplaces, hybrid marketplaces, brands, and retail chains. Pure marketplaces exclusively provide selling, payment, and transaction facilities for sellers and operate through organized and unorganized sectors utilizing various distribution channels such as supermarkets, hypermarkets, convenience stores, specialty stores, department stores, and e-commerce platforms.

The retail e-commerce market research report is one of a series of new reports that provides retail e-commerce market statistics, including retail e-commerce industry global market size, regional shares, competitors with a retail e-commerce market share, detailed retail e-commerce market segments, market trends and opportunities, and any further data you may need to thrive in the retail e-commerce industry. This retail e-commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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.