E-commerce is the process of selling products and services online, allowing any business to reach customers across the globe.
Of course, e-commerce isn’t new.
The first e-commerce store was Boston Computer Exchange, which launched in 1982.
At the time, it was a luxury; today, having an e-commerce presence is necessary for any business.
All you need to help you target potential customers is the following US eCommerce statistics.
- US revenue from e-commerce for 2023 is expected to be over $981,226 million
- Online transactions make up 24.1% of retail sales
- Amazon is the biggest company in the us e-commerce marketplace
- Visa is the most commonly offered e-commerce payment method
- 58.1% of e-commerce businesses in the US use UPS
- The covid pandemic caused a 54.6% surge in online sales
- The US is the second largest e-commerce market in the world
- An estimated 219 million americans will shop online in 2023
Top US eCommerce Statistics in 2024
1. US Revenue From E-commerce For 2023 Is Expected To Be Over $981,226 Million
E-commerce is slowly taking over the world.
It offers the ability for businesses to reach potential consumers anywhere.
At the same time, customers can locate any product they can think of, just by heading online.
You only need to look at the revenue generated to see how important the e-commerce industry is becoming.
According to the latest reports, revenue from e-commerce in the US alone is expected to be $981,226 million by the end of 2023.
Growth is going to continue.
By 2027 this value is expected to grow to $1,347,412 million.
The market is expected to grow by between 7-9% every year.
You should note that fashion is currently the largest e-commerce market, 22% of all e-commerce sales are related to fashion.
Electronics takes a 20.8% share and Hobby & Leisure takes 20.3%.
Other markets worth noting are DIY products with a 10.86% share, Furniture and Homeware (10.7% share), and Care Products with 8.8%
2. Online Transactions Make Up 24.1% Of Retail Sales
The internet is used daily by billions of people, many of whom spend a lot of time on social media.
With so much time spent online, it is hardly surprising that an increasing number of people are purchasing items online.
According to the latest research, an impressive 24.1% of US retail purchases are made via the internet.
This rate has been steadily rising since 2016. That’s the year that mobile internet access overtook traditional desktop access.
The added convenience of being able to purchase items at any time is increasing the number of people buying products online.
The study also estimates that this percentage will rise to 33.8% by 2027 and keep on rising.
While it’s unlikely that 100% of transactions will ever be conducted online, the majority of transactions will likely be online
In other words, as a business owner you can’t afford not to be online.
3. Amazon Is The Biggest Company In The US E-commerce Marketplace
This isn’t a surprising statistic.
Amazon is known across the globe and sells nearly anything you can think of.
For many, it’s the first place they go when looking for a product online.
It should be noted that heading to Amazon first doesn’t guarantee a consumer will shop there.
Businesses need a strong online presence to secure sales.
According to the latest research, Amazon is the biggest country in the US e-commerce marketplace.
It’s also the largest e-commerce company, by revenue, in the world.
During 2022 Amazon took revenue of $133,460 million.
It does face stiff competition for the top spot from JD.com, this company managed $133,430 million in 2022.
The third-place player offers less of a threat.
It’s Apple.com and had a revenue of 56,560 million.
It was closely followed by Walmart.com with $52,400 million.
4. Visa Is The Most Commonly Offered E-commerce Payment Method
Ordering online means paying online.
There are several options but the most commonly offered payment method is Visa.
According to the statistics, 96.1% of businesses accept payment by Visa.
Mastercard comes a close second with 95.9% of stores offering this as an option.
American Express remains a popular option, especially for websites selling products to the US.
It’s offered by 90.8% of businesses.
Discover is slightly less popular with retailers as it is offered by 81.8% of US online retailers.
PayPal is offered by 77% of US e-commerce stores and is the most common option for anyone with an electronic wallet.
Cryptocurrencies are becoming a more popular option.
However, they still aren’t accepted everywhere and that makes it harder for them to be the most commonly offered or used form of payment.
In short, offering the major credit card brands and PayPal is enough to keep most customers satisfied.
5. 58.1% Of E-commerce Businesses In The US Use UPS
Offering products via e-commerce means you need to use a delivery service to get the product to the customer.
This is a very important part of the process.
In general, once a customer has ordered a product they want to receive it as quickly as possible.
Businesses can gain great reviews simply by offering a fast and reliable delivery service.
Of course, getting the parcel to its destination isn’t enough, it needs to arrive in great condition.
Businesses must use a reliable and fast delivery service.
According to studies, the best one for this is UPS (United Parcel Service).
The service was established many years ago and has developed a reputation for fast secure delivery.
That’s why UPS has a 58.1% share of the e-commerce shipping market.
They are the most popular choice by US retailers.
Other popular choices include the United States Postal Services (USPS), FedEx, DHL, and a smaller firm known as EMS.
These four businesses each hold a significant share of the market, helping to ensure UPS doesn’t overcharge its customers.
6. The Covid Pandemic Caused A 54.6% Surge In Online Sales
Covid hit many businesses hard, particularly those with physical premises and little option to transfer their business online.
Between lockdowns, restrictions, and general fear of interacting with others, many people stopped visiting physical stores.
Of course, products were still needed, both essentials and luxury items.
People had to look for these online.
The result was a significant surge in online transactions.
According to the quarterly e-commerce data in the US, online sales in the second quarter of 2020 were a staggering 54.6% higher than the same quarter of 2019.
In the second quarter of 2020 e-commerce sales totaled $213.3 billion.
The above is predictable as it wasn’t possible to purchase many items in physical stores.
What is surprising is that the trend has continued post-pandemic.
Every quarter sees a rise in the number and value of online sales in the US.
Experts estimate that the pandemic accelerated the movement of customers to e-commerce by as much as five years.
That’s why many businesses struggled to keep up, they simply weren’t ready for this level of electronic sales.
7. The US Is The Second Largest E-commerce Market In The World
The US is often at the front of the pack when it comes to trends and developing tech.
However, it can’t compete with China in terms of the sheer number and value of e-commerce sales.
It’s not surprising, the Chinese government has encouraged businesses in the country to build websites and promote them.
This, alongside the fact the country is home to 1.45 billion people means consumers have more buying power.
By comparison, 330 million people are living in the US.
The result is that total online sales in China are approximately $3 trillion.
That’s roughly three times the value of US sales.
China accounts for over 50% of global e-commerce sales.
Interestingly, it’s the UK that takes the third spot, although it only has a 4.8% share of the e-commerce market! Japan and then South Korea complete the top five list.
However, they may face stiff competition soon as many Latin American countries are seeing rapid growth in e-commerce levels.
(International Trade Association)
8. An Estimated 219 Million Americans Will Shop Online In 2023
A recent survey found that as many as 219 million Americans will make at least one online purchase during 2023.
The number of Americans shopping online has been steadily rising for years.
It’s estimated that by 2030 95% of Americans will be doing some online shopping.
However, it seems likely that many shoppers will continue to do their weekly shopping in a physical store near them.
It’s worth noting that over 50% of online shoppers don’t just shop online because it’s convenient, they also do so because they get free delivery.
One survey even found that hidden charges, especially to do with deliveries, are one of the main reasons that 70.19% of shipping carts are abandoned.
After all, there is always another option.
General E-commerce Statistics
- 30% Of E-Commerce Customers Are Guided To Purchase By Influencers
- 40% Of Consumers Are Concerned About Inflation
- By 2024, 42.9% Of E-commerce Sales Will Be Via A Mobile
- 70% Of English-Speaking Shoppers Won’t Purchase From A Site Not Written In English
- By The End Of 2023, The Global E-commerce Market Will Be Worth $6.3 Trillion
- 37.8% Of All E-commerce Sales Are Via Amazon
- 48% Of Abandoned Carts Are Due To Hidden Costs
9. 30% Of E-Commerce Customers Are Guided To Purchase By Influencers
A recent survey by Hubspot found that nearly a third of shoppers will choose a product because it has been recommended by an influencer they follow.
Interestingly, this rate is higher than recommendations from friends and family.
Only 27% of those surveyed would buy a product because a friend or family member recommended it.
Other e-commerce purchases are triggered by consumers in physical stores.
Approximately 28% of shoppers will see items in a physical store and then locate them online to read a review and compare prices.
In many cases, this leads to online purchases as it’s invariably cheaper.
As a retailer, you should be paying attention to influencers.
The average e-commerce conversion rate is 2.02%, it’s been slowly rising in recent years.
The chances of a conversion multiply dramatically when someone is referred to your site by an influencer.
As of 2022, retail growth was approximately the same rate as e-commerce growth.
E-commerce will likely overtake retail growth in sales in the next 2-3 years, emphasizing how important it will be to get your marketing approach right.
10. 40% Of Consumers Are Concerned About Inflation
Most economies around the world have struggled to bounce back from the effects of the pandemic.
A surprising number of countries are on the edge of recession.
Governments generally increase inflation and interest rates to help prevent a recession.
Of course, for the average person, inflation means more expensive products.
That often means a decision regarding which items to purchase and which aren’t essential.
A recent survey found that 40% of those asked were very concerned about inflation.
If consumers are concerned then businesses should also be concerned.
At present, people are still purchasing goods online and in physical stores.
But, this could change and even global companies need to monitor the situation.
It won’t stop people from wanting to shop online, it will mean they are more careful about what they choose to buy.
Marketers need to be aware of this.
Don’t forget, inflation rates are different in different countries.
Make sure you understand the market you’re targeting and how inflation may affect the price of your product.
You may even be able to use inflation to your advantage.
11. By 2024, 42.9% Of E-commerce Sales Will Be Via A Mobile
Since 2016 more internet access has been done via a mobile connection than a standard desktop connection. It’s a sign of advancements in technology.
Phones can now access websites and even make payments as fast as computers.
Thanks to the latest network improvements, 5G is now a realistic option for many individuals, making it even easier to shop online via a mobile device.
The latest studies show that, by 2024, 42.9% of e-commerce sales will originate from a mobile device using a mobile data connection.
Alongside this, the study found there will be a dramatic increase in goods purchased through social media platforms.
As social media platforms become more and more central to life, it’s estimated that 47% of US consumers and 84% of Chinese will purchase goods via social media by 2025.
In other words, there are likely to be more branded shopping apps, alongside an increase in social media marketing campaigns.
Content on sites like Instagram and TikTok will also be important.
12. 70% Of English-Speaking Shoppers Won’t Purchase From A Site Not Written In English
Being able to purchase something in your own language makes the process significantly easier.
It’s not so bad if you’ve done your research and are simply looking for the best price.
However, you still won’t be able to verify the terms and conditions.
The answer is to use a translation extension on your browser and you’ll be able to read the page in your preferred language.
However, while 57% of customers are happy to shop internationally, only 30% of English respondents will buy items from a site that isn’t translated into English.
By this, people mean that the site owner has taken the time to create versions of the site in different languages.
It inspires confidence in the consumer that the website is genuine.
Every business offering products to an international market should be aware of this and ensure their website offers a native version for all relevant languages.
If you don’t you’re losing out on customers, especially if your site isn’t originally in English.
13. By The End Of 2023, The Global E-commerce Market Will Be Worth $6.3 Trillion
E-commerce is becoming more popular, this is illustrated in the amount of revenue the industry is generating.
According to the latest research by Forbes, the global e-commerce market will be worth $6.3 trillion.
The report also suggests that the market will be worth $8.1 trillion by 2026.
That’s nearly 30% growth in three years.
Naturally, as it gets easier and easier to shop online, more people will do it.
This will create a chain reaction as sites develop positive reputations.
Several sites will likely see a huge amount of growth.
To be one of those, you need to look at these statistics and start targeting the e-commerce market properly today.
If you’re still not sure, consider this.
In 2023, 16.4% of retail purchases took place online.
By 2026, it’s estimated over 30% of US purchases will be completed online.
14. 37.8% Of All E-commerce Sales Are Via Amazon
We’ve already established that Amazon is the biggest e-commerce retailer in the US and on the planet.
However, what may surprise you is the level of their dominance.
According to statistics, 37.8% of all e-commerce sales are completed through Amazon.
The truth is consumers trust Amazon, it has spent a long time convincing customers that they are a safe option and it’s worked.
Interestingly, while Amazon is responsible for a large percentage of e-commerce sales, it’s not the most popular e-commerce website.
In fact, Walmart.com is the most popular, it has an average of 855 million visits a month.
eBay manages an average of 670 million monthly visits and AliExpress.com has 652 million monthly visitors.
Other sites that have proven to be popular in terms of visitor numbers include Etsy, Playstation, Samsung, and BestBuy.
15. 48% Of Abandoned Carts Are Due To Hidden Costs
Getting people to add things to a basket is only the first step in completing a sale.
As previously mentioned, over 70% of shopping carts are abandoned.
You need to know why to reduce this percentage in your business.
According to a recent survey by Forbes, the biggest reason to abandon a shopping cart is because there are extra costs that weren’t clear before.
These are usually shipping fees and taxes. 48% of abandoned carts are due to these costs.
24% of abandoned carts are a result of the site insisting someone create an account.
While it’s a useful way to collect customer data, not all customers want to spend the time completing these details.
A further 22% of abandoned carts happen because the consumer discovers the delivery time is slow.
Other reasons include not feeling that the site can be trusted with credit card details or that the checkout process is needlessly complicated.
Whether you look at the US eCommerce statistics or the global trends, the result is the same.
This is a trillion-dollar industry and one that is expected to grow significantly in the next 3-5 years.
That doesn’t even take special events like Black Friday and Cyber Monday into consideration.
These are already huge events and are likely to get bigger.
Although the global pandemic sped the process up, the result is the same.
Any business without an online presence and a marketing plan is likely to struggle in the future.
After all, it’s not just better technology helping people to see what’s available online and secure the best deal.
The technology is also improving delivery options, including speed, and even the customer service response.
It’s highly likely that, within the next 10 years, over 80% of all shopping is undertaken online.
In short, you need to check the above statistics, research your customer base further, and make sure you have the best possible online presence.