Retail E-Commerce Market: Global Industry Analysis and Forecast (2024-2030) by Product, Type and Region

Retail E-Commerce Market Overview

Retail E-Commerce is a term used to describe the direct sale of products and services to customers through websites or other digital platforms that facilitate online transactions. The retail e-commerce market is the online sector where goods and services are sold directly to consumers through digital platforms, encompassing a wide variety of products and services.

 

As consumers seek more advanced shopping experiences, convenience, and personalization, the global retail e-commerce market is expanding rapidly. The global retail e-commerce market is dominated by a hybrid marketplace that successfully combines the advantages of pure marketing and branding platforms. Well-known companies like Amazon and Walmart rely on extensive product offerings, aggressive pricing strategies, and efficient delivery networks to increase customer satisfaction. In particular, the United States is the world leader in e-commerce retail sales due to its highly developed transportation infrastructure, high Internet penetration, and strong consumer purchasing power.

 

The fastest growing market is the Asia-Pacific region, fueled by the growth of internet connections and the popularity of mobile commerce, especially in China and India, where websites such as Alibaba and Flipkart play an important role. Innovations in mobile shopping, on-demand services, and omnichannel tactics will continue to define the future of online retail as retailers adapt to changing consumer tastes and expectations.

 

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Retail E-Commerce Market Trend

The Rise of Subscription Services in Retail E-Commerce Meets Consumer Demands for Convenience and Personalization

Subscription services emerged as a prominent trend within the retail e-commerce market, driven by consumer demand for convenience, personalization, and curated experiences. Subscription models make shopping easier and more enjoyable, as customers regularly receive items tailored to their tastes.

 

For example, Birchboxa (U.S.) monthly beauty subscription company that sends a box of personalized cosmetics according to the recipient's taste. With this concept, customers are exposed to new brands and can try products before making full-size purchases. Similar companies such as FabFitFun and Boxycharm, which serve niche sectors such as health and cosmetics, were born from the success of Birchbox, which emphasizes the customization of subscription services within the retail e-commerce market.

 

On-demand food and beverage companies like HelloFresh (Germany) and Blue Apron (U.S.) have revolutionized meal planning within the retail e-commerce market. Feeding customer’s growing need for convenient, home-cooked meals, these services bring portioned ingredients and easy-to-follow recipes right to doorstep. This approach has particularly appealed to busy professionals and families looking for quick and healthy dining options.

 

Further evidence that the concept is not limited to physical products comes from subscription entertainment services such as Netflix and Spotify which are key players in the retail e-commerce market. By enabling on-demand viewing and listening, these platforms have completely changed the way people consume media. This shift reflects the growing demand for digital access and convenience, as consumers increasingly prefer to stream content rather than purchase physical copies.  As a result, the retail e-commerce market continues to expand beyond traditional goods, embracing digital subscriptions that cater to diverse consumer preferences and lifestyles.

 

The rise of subscription services in the retail e-commerce market reflects a shift in consumer preferences toward convenience and carefully curated experiences. Retailers are increasingly adopting this approach as they see how it can increase customer loyalty, provide a consistent revenue stream, and provide added value and personalization to customers. Thus, subscription services are likely to continue to influence the development of retail e-commerce, shaping how businesses engage with customers and deliver products and services in the future.

 

Retail E-Commerce Market Dynamics

The Rise of Mobile Shopping is transforming the Global Retail E-Commerce Market

As more people turn to smartphones for their shopping needs, the growth of mobile shopping has become a major driver of the global retail e-commerce market. The ease of use and availability of mobile devices have revolutionized the way consumers search, evaluate, and buy products, which is why retailers have prioritized mobile optimization in their e-commerce plans.

 

• By the end of 2021, 73% of all e-commerce sales were expected to happen on a mobile device.
• In India, Mobile Devices (Smartphones) in 2023 constitute over 60% of e-commerce transactions.

 

Retailers are investing in mobile websites and apps to improve the shopping experience as mobile commerce (m-commerce) grows, particularly in the competitive retail e-commerce market.

 

For example,

• Amazon is constantly enhancing its mobile app with features like Alexa voice search, one-click shopping, and personalized recommendations, all tailored to meet the demands of the retail e-commerce market.

 

With this user experience, increased purchasing efficiency leads to increased sales and enhanced consumer loyalty, further driving growth in the retail e-commerce market. As retailers continue to innovate and adapt to the preferences of mobile shoppers, the retail e-commerce market is likely to expand even more rapidly.

 

• Shopify is another example of a mobile commerce that makes it easy for small and medium-sized businesses to create online stores and thrive in the retail e-commerce market. Shopify has developed a mobile app that allows retailers to efficiently manage their business using smartphones, which is essential for success in the fast-paced retail e-commerce market.

 

This software simplifies tasks like tracking sales, fulfilling orders, and communicating with customers, helping businesses stay competitive. By providing these features, Shopify empowers companies to participate effectively in the growing retail e-commerce market and leverage its vast potential for growth and success.

 

Social media sites like Instagram, Facebook, and TikTok with built-in shopping capabilities allow customers to shop directly from their mobile devices.

 

For example, Instagram Shopping allows businesses to create a virtual facade directly on their profile, allowing customers to easily browse products and make purchases without leaving the app. In addition to improving the online shopping experience, this integration of e-commerce and social media increases traffic for retailer's online businesses.

 

Rising Customer Expectations in the Evolving Retail E-commerce Market

Rising customer expectations are a key issue in the global retail e-commerce market, as customers demand faster delivery, more personalized shopping experiences, and superior customer support. After the emergence of companies like Amazon, which raised the bar for fast delivery with their Prime program, consumers now consider same-day or next-day delivery options to be the norm in the retail e-commerce market. This shift has put pressure on other retailers to improve their supply chain efficiency and logistics capabilities to keep up with the increasing demand in the retail e-commerce market. As competition intensifies, retailers have to adapt to these rising expectations to thrive in the evolving retail e-commerce market.

 

For instance, to match Amazon's speed, Walmart has made significant investments in its e-commerce infrastructure, adopting cutting-edge technologies such as automated warehouses and drone delivery systems.

 

• In 2023, Walmart launched same-day grocery delivery in retail e-commerce markets significantly reducing wait times and increasing consumer satisfaction.

 

However, these improvements are expensive and can make things difficult, especially for small shops that may struggle to stay afloat.

 

Along with fast delivery, customers in the retail e-commerce market want more personalized shopping experiences that meet their specific needs and preferences. Stores like Zalando have utilized artificial intelligence and data analysis to provide personalized recommendations based on past purchases and browsing habits, which is crucial for success in the competitive retail e-commerce market. Zalando's ability to personalize the shopping experience has significantly increased customer engagement and loyalty, setting a high standard within the retail e-commerce market. However, the implementation of such modern technologies can be resource-intensive, creating challenges for companies that lack the necessary infrastructure to compete effectively in the retail e-commerce market.

 

Retailers in the retail e-commerce market need to combine multiple sales channels and offer options such as online shopping, buying online picking up in-store (BOPIS), and express returns to meet consumer' demands for a hassle-free and convenient shopping experience. While this omnichannel strategy benefits customers and enhances their experience in the retail e-commerce market, it can complicate inventory management and require the use of expensive technologies. As retailers navigate these challenges, successfully implementing an omnichannel approach will be essential for remaining competitive in the rapidly evolving retail e-commerce market.

 

Retail E-Commerce Market Segment Analysis

Based on Type, A hybrid marketplace model that combines the advantages of pure marketplaces and brand/chain platforms dominated the global retail e-commerce market in 2023. The ability of hybrid marketplaces to offer a wide range of products, ease of use and consumer trust was an important factor in their superiority.

 

For instance, Amazon, which offers customers a wide selection and affordable prices by allowing independent sellers to display their products alongside their own offerings, providing consumers with a wide variety of choices and competitive pricing.

 

Their strong sales figures and market share demonstrate the superiority of the hybrid market in the global retail e-commerce market.

• In 2022, Amazon's total revenue exceeded USD 500 billion, with third-party seller sales accounting for nearly 60% of its total sales in the retail e-commerce market. This significant contribution highlights the importance of third-party sellers in Amazon's business model, making it a leader in the global retail e-commerce market. The platform has continued to attract a vast number of sellers, reaching approximately 6.2 million by 2023, which enhances product variety and customer choice within the retail e-commerce market.

 

• Walmart's e-commerce sales rose significantly, with reported revenues increasing from USD 73.2 billion in fiscal 2022 to USD 82.1 billion in fiscal 2023, reflecting its strong position in the retail e-commerce market. This growth was driven in part by the success of its Marketplace, which saw a 14% increase in customers purchasing items from third-party sellers during the second quarter of 2023.

To further enhance customer convenience and loyalty, Walmart's e-commerce platform effectively contracted third-party vendors while leveraging its brick-and-mortar stores for multichannel fulfillment capabilities within the retail e-commerce market.

 

• In 2022, Walmart introduced many new features aimed at attracting more third-party sellers in the retail e-commerce market, including brand shops and curated assortments. These initiatives are designed to improve product discoverability and enhance the overall shopping experience for customers. Walmart's commitment to building a user-friendly platform has made it a competitive player in the hybrid marketplace landscape within the retail e-commerce market.

 

• Walmart Marketplace has seen substantial growth, with the number of third-party sellers increasing from around 130,000 in early 2021 to over 151,820 by June 2022, marking a growth of more than 60%. This expansion reflects Walmart's strategy to diversify its product offerings and enhance customer convenience through a broader assortment of goods available online, strengthening its presence in the retail e-commerce market. The integration of third-party sellers has allowed Walmart to leverage its physical stores for omnichannel fulfilment, further enhancing customer loyalty in the competitive retail e-commerce market.

 

The Pure Marketplace is expected to grow at the fastest rate during the forecast period of the global retail e-commerce market. The growing popularity of craft and niche products has been capitalized on by online marketplaces such as eBay and Etsy, appealing to customers seeking unique items not found in traditional retail stores within the retail e-commerce market. Since their primary function is to facilitate transactions between buyers and sellers without storing goods, these pure marketplaces thrive with minimal overhead in the competitive retail e-commerce market. As more consumers turn to these platforms for distinct products, the growth of pure marketplaces will significantly impact the overall dynamics of the retail e-commerce market, driving further innovation and competition within the retail e-commerce market.

 

The rise of pure marketplaces also reflects a shift in consumer behavior towards more personalized and unique shopping experiences, which are becoming increasingly important in the retail e-commerce market. As these marketplaces expand their offerings and improve their user interfaces, they are likely to attract an even broader audience, enhancing their influence on the retail e-commerce market.

 

Retail E-Commerce Market Regional Insights

The North American retail e-commerce market, specifically the USA retail e-commerce market, dominates the global e-commerce market in 2023. The reasons for this dominance include its advanced logistics and delivery infrastructure, which enables the USA retail e-commerce market to fulfill orders quickly and offer same-day and next-day delivery options. Strong smartphone adoption and high internet penetration further fuel the growth of online shopping in the USA retail e-commerce market, which is primarily dominated by sites like Amazon and Walmart.

 

The region's retail e-commerce market power is demonstrated by Walmart's creative use of its brick-and-mortar locations for multi-channel deployments and Amazon's significant revenue from third-party sellers within the retail e-commerce market. Additionally, the USA retail e-commerce market benefits from high consumer spending power and a culture of frequent online shopping, driven by a diverse array of goods and advanced technologies such as artificial intelligence and data analytics, enhancing the overall shopping experience in the retail e-commerce market.

 

The Asia Pacific retail e-commerce market is expected to grow at the fastest rate during the forecast period of the global retail e-commerce market. Increased internet access is fueling rapid growth in the retail e-commerce market, especially in countries like China and India, where mobile devices are becoming the primary means of e-commerce.

 

• In 2023, China had an Internet penetration rate of 73%, while India's rate reached 45%. This growth has been driven by the widespread adoption of smartphones and the availability of affordable data plans.

 

South Korea e-commerce market indeed stands out globally, especially in terms of its significant share of GDP attributed to e-commerce sales. This high penetration reflects a strong digital economy and consumer behavior favoring online shopping. The dominance of B2B over B2C sales mirrors trends seen in other developed markets, where business transactions often exceed direct consumer sales. As South Korea continues to expand its digital infrastructure and consumer base, it's positioned to rise further in global e-commerce rankings by the end of the decade.

 

This expansion within the retail e-commerce market is further driven by urbanization and the emergence of a growing middle class further boost this expansion within the retail e-commerce market, supported by local giants such as Alibaba and Flipkart. The region's dynamic retail e-commerce market is highlighted by the success of Flipkart in India and the dominance of Alibaba in China, both of which are pivotal players in the global retail e-commerce market.

 

• In 2022, Alibaba's revenue reached USD 134 billion, with its core commerce segment accounting for approximately 66% of total revenue in the retail e-commerce market. The company has continued to invest in new retail initiatives, integrating online and offline shopping experiences to better serve consumers with the retail e-commerce market.
• In 2022, Flipkart's revenue reached USD 6.1 billion, with the company capturing a significant market share in the Indian e-commerce market. Flipkart has focused on expanding its seller base, enhancing its logistics network, and offering personalized shopping experiences to drive growth in the competitive retail e-commerce market.

 

Asia Pacific is a key growth region for the global retail e-commerce market, bolstered by government measures to promote digital commerce and the rise of various local and international marketplaces, making it a critical area for future investment and innovation in the retail e-commerce market.

 

• Asia Pacific is home to several local e-commerce giants that have successfully competed with international players. In addition to Alibaba and Flipkart, platforms like JD.com in China and Lazada in Southeast Asia have gained significant market share in their respective regions.

 

Retail E-Commerce Market Competitive Landscape

The retail e-commerce market is highly competitive, with major competitors including Amazon, Walmart, Alibaba, Target and eBay competing for market share. Amazon is leading in the retail e-commerce market, using its extensive product selection, advanced shipping and membership services like Prime to increase customer delight and loyalty. To attract customers, Walmart successfully combined its physical store and online presence, offering door-to-door pickup and same-day delivery.

 

Competition is further intensified by emerging companies and specialty platforms such as Etsy and Wayfair that target specific markets specializing in home and craft goods. In addition, social commerce is becoming more popular with businesses using Instagram and TikTok for direct transactions, highlighting the move towards personalized shopping experiences. Retailers must be competitive in the face of increasing consumer expectations. They should prioritize technology integration, sustainability and better customer service to differentiate themselves in this ever-changing market.

 

Mergers and Acquisitions

• In 2021, Amazon acquired MGM for USD 8.45 billion, a strategic move aimed at bolstering its streaming service, Amazon Prime Video. This acquisition allowed Amazon to enhance its content library with MGM's extensive film and television catalog, thereby strengthening its competitive position in the streaming market.
• Walmart's acquisition of Jet.com in 2016 aimed to enhance its e-commerce capabilities, but the integration continued to influence Walmart's strategy through 2023. The acquisition has helped Walmart improve its online pricing strategies and logistics, allowing it to better compete with Amazon in the retail e-commerce market.
• In July 2023, eBay Inc. acquired Certilogo S.p., an Italian company that provides AI-powered digital IDs and authentication for apparel and fashion goods. The acquisition helped establish eBay as a trusted pre-owned fashion and apparel shopping destination. Certilogo's platform allows consumers to confirm the authenticity of products and access reliable information about them.
• In March 2024, Alibaba Group Holding Limited announced its plan to invest USD 1.1 billion in South Korea within the next three years. In 2024, Alibaba plans to allocate USD 200 million for the logistics hub construction and USD 100 million to facilitate small and medium-sized South Korean enterprises' international sales. Furthermore, the company plans to invest approximately USD 74.67 million to strengthen consumer protection measures in South Korea.

 

Collaborations

• Target's partnership with Shipt, initiated in 2017, has continued to flourish, providing same-day delivery services across various product categories. By 2023, this collaboration significantly enhanced Target's logistics capabilities, allowing customers to receive groceries and household items quickly, thereby improving customer satisfaction and loyalty.

 

• In 2019, Walmart's collaboration with Google to enhance voice shopping through Google Assistant has been a notable development. This partnership has evolved, enabling customers to add items to their Walmart shopping cart using voice commands, thus streamlining the shopping experience.

 

New Entrants

• Thrive Market, an online grocery retailer that emphasizes organic and healthy products, has gained traction since its founding. By 2023, Thrive Market had expanded its offerings and customer base, catering to health-conscious consumers and competing effectively in the niche market of organic products.

 

• In India, Meesho has emerged as a significant player in the e-commerce space, particularly focusing on social commerce. By 2023, it had captured a substantial market share, especially in tier 2 and tier 3 cities, by enabling small businesses and individuals to sell products through social media platforms.

 

Retail E-Commerce Market Scope

Retail E-Commerce Market
Market Size in 2023	USD 5.50 Tn.
Market Size in 2030	USD 11.15 Tn.
CAGR (2024-2030)	10.52%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Retail E-Commerce Market Segments	By Product Groceries Apparels and Accessories Footwear Personal and Beauty Care Furniture and Household Decor Electronic Goods Others
	By Type Hybrid Marketplace Pure Marketplace Brand Retail Chain Others
Regional Scope	North America – United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Russia, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa – South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Retail E-Commerce Market companies

North America

1. Amazon (USA)
2. Walmart (USA)
3. eBay (USA)
4. Target (USA)
5. Shopify (Canada)
6. Etsy (USA)
7. Wayfair (USA)
8. Wish (USA)
9. Best Buy (USA)

Europe

1. Zalando (Germany)
2. ASOS (United Kingdom)
3. Otto Group (Germany)
4. Allegro (Poland)

Asia Pacific

1. Alibaba (China)
2. JD.com (China)
3. Flipkart (India)
4. Tmall (China)
5. SHEIN (China)
6. Rakuten (Japan)

Middle East and Africa (MEA)

1. Jumia (Nigeria)
2. Takealot (South Africa)
3. Noon (UAE)

South America

1. MercadoLibre (Uruguay)
2. B2W Digital (Brazil)