Online Retail Market in the US to grow by USD 460.13 billion from 2021 to 2026, Driven by the growing seasonal and holiday sales - Technavio

NEW YORK, March 14, 2023 /PRNewswire/ -- The online retail market in the US size is estimated to grow by USD 460.13 billion from 2021 to 2026, according to Technavio. The market is estimated to grow at a CAGR of  11.64% during the forecast period. The growing seasonal and holiday sales are driving the online retail market growth in the US significantly. Omnichannel retailing is one of the major trends shaping the market. 

For more insights on the forecast market size (2021 to 2026) - Request a sample report

What's New?

• Recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession 
• Global competitiveness and key competitor positions 
• Market presence across multiple geographical footprints - Strong/Active/Niche/Trivial  - buy the report!

Online Retail Market in the US - Segmentation Assessment
Segment Overview
Technavio has segmented the market based on the product (apparel, footwear, and accessories, consumer electronics and electricals, food, and grocery, home furniture and furnishing, and others) and device (smartphones and tablets and PCs).

• The market share growth by the apparel, footwear, and accessories segment will be significant during the forecast period. The market growth can be attributed to factors such as the availability of simple and secure online payment options, the ability to track shipments, 24/7 customer service, and low prices. As apparel, footwear, and accessories are products with a low perceived risk of product delivery and returns, they have gained popularity on the internet. Furthermore, the growing population and rising disposable personal income are two significant drivers shaping the segment growth in the online retail market in the US.

Insights on the market contribution of various segments including country and region wise, and forecast market size (2021 to 2026) - Download a Sample Report

Online Retail Market in the US – Market Dynamics
Key factor driving market growth

• One of the key drivers shaping the growth of the online retail market in the US is holiday and seasonal sales. 
• For instance, e-commerce sales in the US, increased by 11% in 2021 from November 1 to December 24, compared to a massive 47.2% growth in the holiday season of 2020.
• Generally, sales increase during Thanksgiving, Black Friday, and Cyber Monday.
• The largest gaining product categories during the holiday season include apparel, footwear and accessories, consumer electronics, computer hardware, and toys.
• The US consumers spent USD 204.5 billion online in November and December 2021, up 8.6% over the same period in 2020. In conclusion, exciting sales and offers are driving the online retail market growth during the forecast period.

Leading trends influencing the market 

• Omni-channel marketing is a major trend in the online retail market in the US that drives market growth during the forecast period. Omni-channel marketing is rapidly becoming the norm for many retailers in the country. 
• This marketing strategy allows consumers the option to shop online and pick up the merchandise from the store nearest to their location on the same day.
• Retailers are experiencing a high influence through their online presence on their in-store sales. One such example is Best Buy integrating its offline and online stores to boost revenues.
• The retailer is utilizing physical stores as distribution centers for online purchases as a part of the omnichannel strategy. According to Best Buy, 40% of its online shoppers prefer to pick up their purchases from physical stores. The company also challenges online and discount retailers with its match-to-price strategy, claiming to offer gadgets at or lower than the price offered by its competitors.
• Thus, marketing strategies like omnichannel marketing are expected to drive market growth during the forecast period.

Major challenges hindering the market growth

• Some of the factors hindering the US online retail market growth include transportation and logistics.
• The three major processes where the intervention of transportation and logistics come into the picture are product procurement, shipping the ordered items, and delivery to the customers. All these processes require a high time and money investment, challenging the efficiency and effectiveness of retailers and their costing strategies.
• The profit margin of retailers is reduced due to the higher cost incurred from transportation and logistics. Most of the time, retailers are unable to break even.
• Transportation and logistics will continue to be under a lot of pressure owing to rising fuel prices, driver shortages, as well as a governmental and societal push for increased digitization and sustainability. 

Insights on market drivers, trends, & challenges, and forecast period(2021 to 2026)- Request a sample report!

What are the key data covered in this Online Retail Market in the US report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the online retail market in the US between 2022 and 2026
• Precise estimation of the size of the online retail market in the US size and its contribution to the market with a focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the online retail market across the US 
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth in the online retail market in the US vendors

Gain instant access to 17,000+ market research reports. 

Technavio's SUBSCRIPTION platform

Related Reports:

The online toys and games retailing market size is expected to increase by USD 16.04 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.39%. In-sync mobile and traditional games is a major driver impacting the online toys and games retailing market growth. 

The online baby products retailing market size is expected to increase by USD 13.61 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 9.82%. A key factor driving growth in the online baby products retailing market is the easier payment options.

Browse for Technavio Consumer Discretionary market reports

Table of Contents

1. Executive Summary 

  1.1 Market Overview

  Exhibit 01:  Key Finding 1

  Exhibit 02:  Key Finding 2

  Exhibit 03:  Key Finding 5

  Exhibit 04:  Key Finding 6

  Exhibit 05:  Key Finding 7

2. Market Landscape 

  2.1 Market ecosystem 

  2.1.1 Parent Market

  Exhibit 06  Parent market

  Exhibit 07:  Market characteristics

  2.2 Value Chain Analysis 

  Exhibit 08:  Value chain analysis : Internet and Direct Marketing Retail Market

  2.2.1 Inputs

  2.2.2 Inbound logistics

  2.2.3 Operations

  2.2.4 Outbound logistics

  2.2.5 Marketing and sales

  2.2.6 Service

  2.2.7 Support activities

  2.2.8 Innovation

3. Market Sizing 

  3.1 Market definition

  Exhibit 09:  Offerings of vendors included in the market definition

  3.2 Market segment analysis 

  Exhibit 10:  Market segments

  3.3 Market size 2021 

  3.4 Market outlook: Forecast for 2021 - 2026 

  3.4.1 Estimating growth rates for emerging and high-growth markets

  3.4.2 Estimating growth rates for mature markets

  Exhibit 11:  US - Market size and forecast 2021 - 2026 ($ billion)

  Exhibit 12:  US market: Year-over-year growth 2021 - 2026 (%)

4. Five Forces Analysis 

  4.1 Five Forces Summary 

  Exhibit 13:  Five forces analysis 2021 - 2026

  4.2 Bargaining power of buyers 

  Exhibit 14: Bargaining power of the buyer

  4.3 Bargaining power of suppliers 

  Exhibit 15: Bargaining power of the supplier

  4.4 Threat of new entrants 

  Exhibit 16: Threat of new entrants

  4.5 Threat of substitutes 

  Exhibit 17: Threat of substitutes

  4.6 Threat of rivalry 

  Exhibit 18: Threat of rivalry

  4.7 Market condition

  Exhibit 19: Market condition - Five forces 2021

5. Market Segmentation by Product 

  5.1 Market segments

  The segments covered in this chapter are:

• Apparel, footwear, and accessories
• Consumer electronics and electricals
• Food and grocery
• Home furniture and furnishing
• Others

  Exhibit 20:  Product - Market share 2021-2026 (%)

  5.2 Comparison by Product 

  Exhibit 21:  Comparison by Product

  5.3 Apparel, footwear, and accessories - Market size and forecast 2021-2026 

  Exhibit 22:  Apparel, footwear, and accessories - Market size and forecast 2021-2026 ($ billion)

  Exhibit 23:  Apparel, footwear, and accessories - Year-over-year growth 2021-2026 (%)

  5.4 Consumer electronics and electricals - Market size and forecast 2021-2026 

  Exhibit 24:  Consumer electronics and electricals - Market size and forecast 2021-2026 ($ billion)

  Exhibit 25:  Consumer electronics and electricals - Year-over-year growth 2021-2026 (%)

  5.5 Food and grocery - Market size and forecast 2021-2026 

  Exhibit 26:  Food and grocery - Market size and forecast 2021-2026 ($ billion)

  Exhibit 27:  Food and grocery - Year-over-year growth 2021-2026 (%)

  5.6 Home furniture and furnishing - Market size and forecast 2021-2026 

  Exhibit 28:  Home furniture and furnishing - Market size and forecast 2021-2026 ($ billion)

  Exhibit 29:  Home furniture and furnishing - Year-over-year growth 2021-2026 (%)

  5.7 Others - Market size and forecast 2021-2026 

  Exhibit 30:  Others - Market size and forecast 2021-2026 ($ million)

  Exhibit 31:  Others - Year-over-year growth 2021-2026 (%)

  5.8 Market opportunity by Product 

  Exhibit 32:  Market opportunity by Product

6 Market Segmentation by Device 

  6.1 Market segments

  The segments covered in this chapter are:

• Smartphones and tablets
• PCs

  Exhibit 33:  Device - Market share 2021-2026 (%)

  6.2 Comparison by Device 

  Exhibit 34:  Comparison by Device

  6.3 Smartphones and tablets - Market size and forecast 2021-2026 

  Exhibit 35:  Smartphones and tablets - Market size and forecast 2021-2026 ($ billion)

  Exhibit 36:  Smartphones and tablets - Year-over-year growth 2021-2026 (%)

  6.4 PCs - Market size and forecast 2021-2026 

  Exhibit 37:  PCs - Market size and forecast 2021-2026 ($ billion)

  Exhibit 38:  PCs - Year-over-year growth 2021-2026 (%)

  6.5 Market opportunity by Device 

  Exhibit 39:  Market opportunity by Device

7. Customer landscape 

  Technavio's customer landscape matrix comparing Drivers or price sensitivity, Adoption lifecycle, importance in customer price basket, Adoption rate and Key purchase criteria

  7.1 Overview

  Exhibit 40:  Customer landscape

8. Drivers, Challenges, and Trends 

  8.1 Market drivers 

  8.1.1 Growing seasonal and holiday sales

  8.1.2 High penetration of Internet and smartphones and rising online spending

  8.1.3 Increase in time poverty and easy payment options

  8.2 Market challenges 

  8.2.1 Transportation and logistics

  8.2.2 Poor technology integration, especially with online specialty retailers operating at small scales

  8.2.3 High preference for shopping most product categories in physical stores

  Exhibit 41:  Impact of drivers and challenges

  8.3 Market trends 

  8.3.1 Omni-channel retailing

  8.3.2 Social media marketing

  8.3.3 Rising popularity of digital payment services

9. Vendor Landscape 

  9.1 Overview

  Exhibit 42:  Vendor landscape

  9.2 Landscape disruption 

    Exhibit 43:  Landscape disruption

  Exhibit 44: Industry Risk

  9.3 Competitive scenario 

10. Vendor Analysis 

  10.1 Vendors covered 

  Exhibit 45: Vendors covered

  10.2 Market positioning of vendors 

  Exhibit 46: ?Market positioning of vendors?

  10.3 Amazon.com Inc.

  Exhibit 47:  Amazon.com Inc. - Overview

  Exhibit 48:  Amazon.com Inc. - Business segments

  Exhibit 49:  Amazon.com Inc. - Key news

  Exhibit 50:  Amazon.com Inc. - Key offerings

  Exhibit 51:  Amazon.com Inc. - Segment focus

  Exhibit 51:  Amazon.com Inc. - Segment focus

  Exhibit 52:  Apple Inc. - Overview

  Exhibit 53:  Apple Inc. - Business segments

  Exhibit 54:  Apple Inc. - Key news

  Exhibit 55:  Apple Inc. - Key offerings

  Exhibit 56:  Apple Inc. - Segment focus

  10.4 Best Buy Co. Inc.

  Exhibit 57:  Best Buy Co. Inc. - Overview

  Exhibit 58:  Best Buy Co. Inc. - Business segments

  Exhibit 59:  Best Buy Co. Inc. - Key offerings

  Exhibit 60:  Best Buy Co. Inc. - Segment focus

  10.5 Costco Wholesale Corp. 

  Exhibit 61:  Costco Wholesale Corp. - Overview

  Exhibit 62:  Costco Wholesale Corp. - Business segments

  Exhibit 63:  Costco Wholesale Corp. - Key offerings

  Exhibit 64:  Costco Wholesale Corp. - Segment focus

  10.6 eBay Inc.

  Exhibit 65:  eBay Inc. - Overview

  Exhibit 66:  eBay Inc. - Product and service

  Exhibit 67:  eBay Inc. - Key offerings

  10.7 Kroger Co.

  Exhibit 68:  Kroger Co. - Overview

  Exhibit 69:  Kroger Co. - Product and service

  Exhibit 70:  Kroger Co. - Key offerings

  10.8 Target Corp. 

  Exhibit 71:  Target Corp. - Overview

  Exhibit 72:  Target Corp. - Product and service

  Exhibit 73:  Target Corp. - Key news

  Exhibit 74:  Target Corp. - Key offerings

  10.9 The Home Depot Inc. 

  Exhibit 75:  The Home Depot Inc. - Overview

  Exhibit 76:  The Home Depot Inc. - Product and service

  Exhibit 77:  The Home Depot Inc. - Key news

  Exhibit 78:  The Home Depot Inc. - Key offerings

  10.10 Walmart Inc. 

  Exhibit 79:  Walmart Inc. - Overview

  Exhibit 80:  Walmart Inc. - Business segments

  Exhibit 81:  Walmart Inc. - Key offerings

  Exhibit 82:  Walmart Inc. - Segment focus

  10.11 Wayfair Inc. 

  Exhibit 83:  Wayfair Inc. - Overview

  Exhibit 84:  Wayfair Inc. - Business segments

  Exhibit 85:  Wayfair Inc. - Key news

  Exhibit 86:  Wayfair Inc. - Key offerings

  Exhibit 87:  Wayfair Inc. - Segment focus

11. Appendix  

  11.1 Scope of the report 

  11.1.1 Market definition 

  11.1.2 Objectives 

  11.1.3 Notes and caveats

  11.2 Currency conversion rates for US$ 

  Exhibit 88:  Currency conversion rates for US$

  11.3 Research methodology 

  Exhibit 89:  Research Methodology

  Exhibit 90:  Validation techniques employed for market sizing

  Exhibit 91: ??Information sources

  11.4 List of abbreviations 

  Exhibit 92: List of abbreviations

About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contact
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

SOURCE Technavio