Online Shopping Market Report 2025

The online shopping market size has grown rapidly in recent years. It will grow from $5.63 trillion in 2024 to $6.25 trillion in 2025 at a compound annual growth rate (CAGR) of 11%. Growth during the historic period was driven by expanding internet access, increased smartphone usage, rising consumer confidence, the development of e-commerce platforms, and ongoing urbanization.

The online shopping market size is expected to see rapid growth in the next few years. It will grow to $9.39 trillion in 2029 at a compound annual growth rate (CAGR) of 10.7%. Growth in the forecast period is expected to be driven by the expanding use of artificial intelligence and personalization technologies, increased availability of subscription services, a rising digital-native population, wider adoption of voice and visual search tools, and a growing preference for cashless payments. Key trends anticipated include the development of eco-friendly packaging and shipping methods, integration of omnichannel retail strategies, advancements in product visualization, the rise of green logistics for sustainability, and innovations in drone and robotic delivery systems.

The growth of the online shopping market is expected to be driven by the increasing penetration of internet connectivity. Internet connectivity refers to the capability of devices to connect and communicate via the internet using various networks and technologies. This rise in connectivity is largely attributed to the expansion of mobile networks, which offer broader and more affordable access to digital services, particularly in remote and underserved regions. Enhanced internet access improves online shopping by providing fast and seamless entry to e-commerce platforms, allowing users to browse and buy products anytime and from anywhere. It also supports real-time updates, secure payment processes, and smooth communication, thereby improving the overall shopping experience. For example, according to the International Telecommunication Union, a UN specialized agency based in Switzerland, internet users increased from 5.1 billion (64% penetration) in 2022 to 5.4 billion (67% penetration) in 2023. Hence, the expanding internet connectivity is propelling the growth of the online shopping market.

Leading companies in the online shopping sector are developing technologically advanced e-commerce platforms to improve user experience and simplify the buying process. These platforms are digital systems that facilitate the buying and selling of products or services online between businesses and consumers. For instance, in May 2024, Amazon.com Inc., a US-based e-commerce giant, launched Amazon.co.za, an online marketplace in South Africa. This platform provides South African customers access to a wide selection of international and local brands across more than 20 product categories, including newly introduced items like non-perishable groceries, pet food, and health supplements. It also features 24/7 customer support and over 3,000 pickup locations nationwide for greater convenience.

In April 2022, Flipkart Inc., an India-based e-commerce company, acquired ANS Commerce for an undisclosed sum. This acquisition aims to strengthen Flipkart’s support for direct-to-consumer (D2C) brands by utilizing ANS Commerce’s comprehensive e-commerce solutions, which include store technology, marketing, and fulfillment services. ANS Commerce is an Indian company specializing in end-to-end online shopping solutions.

Major players in the online shopping market are Walmart Inc., Amazon.com Inc., Alibaba Group Holding Limited, Target Corporation, Best Buy Co. Inc., Macy’s Inc., Nordstrom Inc., Rakuten Group Inc., Wayfair Inc., Zalando SE, eBay Inc., Sea Limited, Shopify Inc., ASOS plc, Flipkart Private Limited, Etsy Inc., Overstock.com Inc., Newegg Commerce Inc., Myntra Designs Private Limited, and Meesho Private Limited.

North America was the largest region in the online shopping market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in online shopping report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the online shopping market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the services sector, particularly in business services, IT, and professional consulting operations. Higher costs for imported technology, office equipment, and essential digital infrastructure have raised operating expenses for service providers, forcing them to either pass on costs to clients or absorb margin pressures. Outsourcing firms and IT service companies are also facing challenges due to increased costs of hardware components and delayed global supply chains, affecting project delivery timelines and profitability. Additionally, retaliatory tariffs have dampened demand for U.S.-based professional services in key international markets, leading to a slowdown in export-driven revenue streams. The sector must now prioritize digital transformation, cost optimization, and expanding domestic client bases to sustain growth and maintain competitiveness amid ongoing trade uncertainty.

Online shopping is the act of purchasing goods or services through the internet using a web browser or mobile application. It enables consumers to explore, choose, and buy products from online stores or marketplaces without needing to visit a physical location. The main goal of online shopping is to offer convenience, wider product availability, and save time for shoppers.

The key categories in online shopping include electronics, fashion, home and kitchen, health and beauty, groceries, and more. Electronics consist of consumer devices that rely on electrical circuits and components to enable functions like communication, entertainment, computing, and control. Popular payment options for online transactions include credit and debit cards, digital wallets, bank transfers, cash on delivery, among others. These services serve a diverse customer base, including both individual consumers and businesses.

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

The online shopping market includes revenues earned by entities through e-commerce sales, logistics and delivery services, marketplace services, subscription services, and advertising and promotions. 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 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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