United States Online Retail Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook 2025-2034

The United States online retail market was valued at USD 1.21 Trillion in 2024. The industry is expected to grow at a CAGR of 7.80% during the forecast period of 2025-2034 to attain a valuation of USD 2.56 Trillion by 2034.

United States Online Retail Market Outlook

The proliferation of smartphones and tablets is one of the crucial factors fuelling the growth of the United States online retail market. Smartphones have made it easier to access e-commerce sites and shop conveniently anytime anywhere. Advancements in the logistics and shipping sector have facilitated same-day and next-day delivery which further contributes to market expansion.

The total retail sales in the United States witnessed a growth rate of 2.3% year-on-year in June 2024. The e-commerce sector accounted for 15.9% of total retail sales in the United States in the first quarter of 2024 which indicates a growth rate of 15.6% compared to the previous quarter. Compared to the first quarter of 2023, the sales in the first quarter of 2024 were up by 8.6% which indicates a positive trajectory in the market.

United States Online Retail Market Growth is Driven by Growth of the E-Commerce Sector in Far West Region

• The Far West region leads with a remarkable 17.3% CAGR, driven by high internet penetration, tech-savvy consumers, and a strong e-commerce infrastructure.
• The Rocky Mountain region follows closely with a 16.1% growth rate, reflecting the increasing adoption of online shopping in less densely populated areas.
• The Southwest and Southeast regions fuel the United States online retail demand with CAGRs of 15.3% and 14.8% respectively, supported by expanding urbanisation and rising consumer spending.
• New England and the Mideast regions exhibit steady growth at 13.9% and 12.8%, respectively, benefiting from well-established online retail ecosystems.

The Plains and Great Lakes regions, with growth rates of 11.9% and 11.2%, respectively, show slower but consistent adoption, likely due to more traditional shopping preferences.

These regional trends underscore the accelerating shift toward online retail across the United States, with the Far West leading the charge.

One of the Crucial United States Online Retail Market Trends is Increased Consumer Preference for High-Value Items

• Apparel and Accessories lead the market with a 17.0% CAGR, reflecting the strong shift towards online shopping for fashion items driven by convenience and a wide range of choices.
• As per the United States online retail market dynamics and trends, Electronics and Appliances follow with a 15.9% growth rate, supported by consumers' increasing preference for purchasing high-value items online, often attracted by competitive pricing and detailed product information.
• Home and Garden products, with a 15.3% CAGR, are also experiencing robust growth as more consumers turn to online platforms for home improvement and gardening needs.
• Beauty and Personal Care products are fuelling the United States online retail market value at a 14.2% rate, driven by the rise of online beauty influencers and personalised shopping experiences.
• Food and Beverage follows with a 13.4% CAGR, reflecting the growing trend of online grocery shopping.

The Others category, which includes a variety of niche products, grows at 11.9%, indicating steady but more modest expansion.

These trends underscore the broad-based growth of online retail across various product categories, with apparel and electronics leading the way.

Growth of Direct-to-Consumer (DTC) websites Fuels the United States Online Retail Market Share

• Direct-to-Consumer (DTC) websites lead with a 16.8% CAGR, driven by brands increasingly bypassing traditional retailers to establish direct relationships with consumers, offering personalized experiences and exclusive products.
• As per the United States online retail industry analysis, Marketplaces, such as Amazon and eBay, follow with a 15.9% growth rate, continuing to dominate due to their wide product selection and trusted platforms.
• Social Commerce, growing at 15.2%, is becoming increasingly popular as more consumers shop directly through social media platforms like Instagram and Facebook, influenced by social media trends and influencers.
• Mobile Commerce (m-commerce), with a 14.3% CAGR, reflects the growing trend of shopping via mobile devices, supported by advancements in mobile payment technologies.

The Others category, which includes less common channels also offers United States online retail market opportunities at a 13.4% rate, indicating steady but more limited adoption.

These trends highlight the dynamic nature of online retail, with DTC and marketplaces leading the charge in reshaping the shopping experience.

Key Questions Answered in This Report:

• How has the United States online retail market performed historically, and what are the growth expectations for the future?
• What are the primary factors influencing demand and growth in the United States online retail market?
• What are the key segments within the United States online retail market, and how are they expected to evolve over the forecast period?
• What are the major challenges and opportunities facing stakeholders in the United States online retail market?
• Who are the key players in the United States online retail market, and what strategies are they employing to maintain a competitive edge?
• What are the regulatory and policy factors influencing the United States online retail market globally or regionally?
• How competitive is the United States online retail market according to Porter's five forces analysis, including factors like bargaining power of buyers and suppliers?
• What are the current trends shaping the United States online retail market landscape, and how are they expected to evolve in the future?
• How are technological advancements impacting the United States online retail market, and what role do innovation and R&D play in driving growth?
• What are the consumer preferences and buying behavior trends influencing the United States online retail market?
• How sustainable are current growth rates in the United States online retail market, and what factors could potentially disrupt these trends?
• What are the regional dynamics within the United States online retail market, and how do they contribute to overall market growth?
• What are the economic factors influencing the United States online retail market, such as GDP growth, inflation rates, and currency fluctuations?
• How are demographic shifts, such as aging populations or urbanization trends, affecting demand in the United States online retail market?
• What are the key strategic partnerships, mergers, and acquisitions shaping the competitive landscape of the United States online retail market?
• What are the regulatory and legal frameworks impacting the United States online retail market globally or in key regions?
• How are changing consumer lifestyles and preferences influencing product or service demand within the United States online retail market?
• What are the emerging market trends and niche opportunities within the United States online retail market that stakeholders should be aware of?
• How resilient is the United States online retail market to external shocks or disruptions, such as geopolitical tensions or natural disasters?
• What are the potential barriers to market entry and growth for new players in the United States online retail market?

Key Benefits for Stakeholders:

Expert Market Research's industry report provides a comprehensive quantitative analysis of various market segments, historical and current market trends, and forecasts the dynamics of the United States online retail market spanning from 2018 to 2034.

The research report delivers up-to-date insights into the market drivers, challenges, and opportunities shaping the United States online retail industry.

Stakeholders can leverage Porter's five forces analysis to assess the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. This analysis aids in evaluating the competitiveness and attractiveness of the United States online retail market.

The competitive landscape section enables stakeholders to gain a deep understanding of their competitive environment. It offers insights into the current market positions of key players, their strategies, and their market shares.

Additionally, the report highlights emerging trends, regulatory influences, and technological advancements that are pivotal for stakeholders navigating the United States online retail market landscape.