Key Market Overview:
Retail E-commerce Market size was worth USD 5,615.67 Billion in 2022, accounting for a CAGR of 9.2% during the forecast period (2023-2030), and the market is projected to be worth USD 11,083.85 Billion by 2030.
Retail e-commerce, also known as online shopping, is a type of electronic commerce that enables consumers to purchase products or services through the internet. Retail e-commerce has revolutionized the way people shop, allowing them to shop from the comfort of their homes or on the go using their mobile devices. The growth of retail e-commerce has been driven by several factors, including the increasing availability of internet access and the widespread adoption of mobile devices. Retailers have also recognized the benefits of selling their products online, including the ability to reach a wider audience, reduce overhead costs, and offer a more personalized shopping experience.
In May 2019, the e-retailer Shopify.Inc acquired a New York-based wholesale good-selling platform called “Handshake” to expand its service and product portfolio. This expansion is likely to encourage market growth over the forecast period. In addition, Shopify Markets, in 2021 has been upgraded to Shopify Markets Pro in 2022. This new feature helps businesses streamline the complexities of compliance, tariffs, shipping, and conversions when managing overseas sales, allowing merchants in North America to sell to an average of 14 new markets.
In conclusion, retail e-commerce has transformed the retail industry, offering consumers more convenience, choice, and accessibility than ever before. As technology continues to advance, it is expected that retail e-commerce will continue to grow and evolve, shaping the future of retail.
Retail e-commerce offers customers the convenience of shopping from anywhere at any time. Customers shop online from the comfort of their own homes, avoiding the need to physically visit stores. Furthermore, e-commerce retailers offer lower prices than traditional retailers due to lower overhead costs, which are being passed on to customers in the form of lower prices. Additionally, social media platforms have become a key driver of retail e-commerce growth, with retailers leveraging these platforms to reach and engage customers. The above-mentioned factors propel the retail e-commerce market growth.
Security breaches, data theft, and fraud are major concerns for customers and that erodes trust in retail e-commerce platforms. Security issues lead to decreased online shopping and hamper the growth of the retail e-commerce market. Furthermore, e-commerce relies heavily on logistics and delivery services, and any disruption in the supply chain impacts the customer experience. Delays, damaged products, and incorrect orders also lead to dissatisfied customers and decreased online shopping. The above-mentioned factors restrain market growth.
Advancements in augmented and virtual reality technologies have the potential to revolutionize the retail e-commerce shopping experience. By providing customers with a more immersive and tactile experience, retailers can better showcase their products and improve customer engagement. Additionally, blockchain technology offers significant potential for improving the security and transparency of e-commerce transactions. By providing a decentralized and tamper-proof ledger for transactions, blockchain increases customer trust and confidence in online shopping. These technologies represent exciting opportunities for retail e-commerce businesses to differentiate themselves from competitors and deliver a superior shopping experience to their customers.
Retail E-commerce Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||11,083.85 Billion|
|By Product Type||Clothing & Apparel, Footwear & Shoes, Electronics & Gadgets, Personal and Beauty Care, Groceries, and Others.|
|By Type||B2C (Business-to-Consumer), B2B (Business-to-Business), B2B2C (Business-to-Business-to-Consumer), B2G (Business-to-Government, C2B (Consumer-to-Business), D2C (Direct-to-Consumer), and C2C (Consumer-to-Consumer)|
|By Region||North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa|
|Key Players||Amazon.com, Inc., Coupang Corp., eBay Inc., Walmart Inc., The Kroger Co., Rakuten Group, Inc., Otto GmbH & Co KG, Albertsons Companies, Inc., Shopify Inc., and Shein (Nanjing Lingtian Information Technology Co. Ltd.)|
By Product Type
Based on product type, the market is categorized into clothing & apparel, footwear & shoes, electronics & gadgets, personal and beauty care, groceries, and others. The clothing and apparel segment holds the largest market share in 2022. As customers are highly comfortable buying clothes online as e-commerce platforms offer a wide range of choices, competitive pricing, and convenient delivery options.
However, the groceries segment is expected to witness the fastest CAGR over the forecast period. Due to the COVID-19 pandemic, there has been a rise in demand for online grocery shopping as it provides a convenient and contactless way of purchasing essential goods from home. This trend is expected to lead to a long-term shift toward digital purchases. The growth in the online grocery market is reflected in the increased sales, which put a strain on the supply chain and workforce capacity. To meet the demand, major vendors such as Walmart, Inc., Amazon.com, Inc., and Albertsons Companies, Inc. have added more workers to their workforce.
Based on type, the retail e-commerce market is classified into B2C (Business-to-Consumer), B2B (Business-to-Business), B2B2C (Business-to-Business-to-Consumer), B2G (Business-to-Government), C2B (Consumer-to-Business), D2C (Direct-to-Consumer), and C2C (Consumer-to-Consumer). The B2C type holds the largest market share in 2022. As B2C e-commerce involves businesses selling products or services directly to individual consumers, the market for consumer goods and services is typically larger than the market for business goods and services. In this model, the business is responsible for marketing, selling, and delivering the product or service to the end consumer. Companies such as Amazon.com, Inc. and Walmart, Inc. are huge players that use the B2C model.
However, the D2C type is expected to witness the fastest CAGR over the forecast period. This is due to the increasing popularity of e-commerce platforms that allow businesses to sell directly to consumers, bypassing traditional retail channels. Additionally, the COVID-19 pandemic has accelerated the shift to online shopping, further driving the growth of the D2C segment
Based on region, the Retail E-commerce market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific holds the largest market share in the year 2022. This is due to the rising middle class, high mobile penetration, and increasing shift towards online shopping. Countries such as China, India, and Southeast Asian nations are major drivers of this growth, making it the largest retail e-commerce market in the world. For instance, with a total online sales figure of over USD 2.8 trillion in 2022, China remains the global leader in e-commerce, accounting for 46.3% of all retail e-commerce sales worldwide. It also boasts the highest number of digital buyers globally, with USD 842.1 million, making up 39.4% of the total.
However, North America is anticipated to observe the fastest CAGR over the forecast period. The growth of retail e-commerce is driven by changing consumer purchase patterns, increased awareness of online shopping, and the availability of secure internet transactions.
Retail E-commerce Market Competitive Landscape:
The market is highly competitive, with a large number of players operating at the global and regional levels. The players compete on various parameters such as price, quality, innovation, and customer service. They are constantly investing in research and development to improve their products and expand their market share. Mergers, acquisitions, and partnerships are also common strategies employed by companies to enhance their market position and expand their product portfolio. Key players in the market include-
- com, Inc.
- Coupang Corp.
- eBay Inc.
- Walmart Inc.
- The Kroger Co.
- Rakuten Group, Inc.
- Otto GmbH& Co KG
- Albertsons Companies, Inc.
- Shopify Inc.
- Shein (Nanjing Lingtian Information Technology Co. Ltd.)
- In April 2022, Rakuten Group Inc. rebranded its C2C Marketplace App “Rakuten Rakuma” and expanded its lineup of services to create a new e-commerce platform that contributes to the circular economy.
- In April 2022, Walmart Inc. is offering new-seller savings, providing a 50% discount on commission rates for the first 90 days to the sellers who started selling on Walmart.com by June 30, 2022.
Table of Content
To check our Table of Contents, please mail us at: [email protected]
Research MethodologyThe Market Research Community offers numerous solutions and its full addition in the research methods to be skilled at each step. We use wide-ranging resources to produce the best outcome for our customers. The achievement of a research development is completely reliant on the research methods implemented by the company. We always faithful to our clients to find opportunities by examining the global market and offering economic insights.
Market Research Community are proud of our widespread coverage that encompasses the understanding of numerous major industry domains. Company offers consistency in our research report, we also offers on the part of the analysis of forecast across a range of coverage geographies and coverage. The research teams carry out primary and secondary research to carry out and design the data collection methods.