PUBLISHER: The Business Research Company | PRODUCT CODE: 1678321
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678321
Retail e-commerce involves the online exchange of goods and services between consumers and a retail distributor, conducted through digital platforms. This form of commerce allows customers to browse and purchase products from the convenience of their devices, eliminating the need for physical presence in a brick-and-mortar store.
The primary types of retail e-commerce encompass pure marketplaces, hybrid marketplaces, brands, and retail chains. Pure marketplaces exclusively provide selling, payment, and transaction facilities for sellers and operate through organized and unorganized sectors utilizing various distribution channels such as supermarkets, hypermarkets, convenience stores, specialty stores, department stores, and e-commerce platforms.
The retail e-commerce market research report is one of a series of new reports from The Business Research Company that provides retail e-commerce market statistics, including retail e-commerce industry global market size, regional shares, competitors with a retail e-commerce market share, detailed retail e-commerce market segments, market trends and opportunities, and any further data you may need to thrive in the retail e-commerce industry. This retail e-commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The retail e-commerce market size has grown rapidly in recent years. It will grow from $3317.41 billion in 2024 to $3674.9 billion in 2025 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to consumer convenience, expanding Internet access, changing consumer preferences, globalization of markets, promotional strategies.
The retail e-commerce market size is expected to see rapid growth in the next few years. It will grow to $5780.56 billion in 2029 at a compound annual growth rate (CAGR) of 12.0%. The growth in the forecast period can be attributed to mobile commerce growth, personalized shopping experiences, sustainable practices, supply chain optimization, economic trends. Major trends in the forecast period include live commerce and shoppable livestreams, personalization through AI and machine learning, contactless payment solutions, localization and hyper-local e-commerce, ephemeral content and limited-time offers.
The rising use of smartphones is significantly driving the growth of the retail e-commerce market in the future. A smartphone is defined as a cellular phone equipped with an integrated computer and features such as an operating system, the capability to run software applications, and web browsing. Smartphones facilitate retail e-commerce by enabling the buying and selling of goods and services through this handheld wireless device. For example, in January 2022, the Consumer Technology Association (CTA), a U.S.-based trade organization, projected that smartphone shipments would reach 154.1 million units with revenues of $74.7 billion in 2022, representing a 3% increase from 2021's 149.6 million units. Therefore, the increase in smartphone usage is propelling the retail e-commerce market.
The rapid increase in internet user penetration is expected to drive the growth of the retail e-commerce market moving forward. Internet users are defined as individuals who have accessed the web within the past three months. These users play a vital role in retail e-commerce by boosting online sales, influencing purchasing decisions through reviews and recommendations, and contributing to the overall expansion of the digital marketplace. For instance, in March 2024, according to the Internet Usage Statistics in 2024 published by Forbes Home, a U.S.-based media and publishing company, approximately 5.35 billion people globally were using the internet in 2024, accounting for about 66.2% of the world's population. This figure is anticipated to rise to 7.9 billion by 2029, indicating a significant increase in internet adoption in the coming years. The number of internet users grew by about 1.8% over the past year, with around 97 million new users coming online in 2023. Thus, the surge in internet user penetration is driving the growth of the retail e-commerce market.
Technological advancement is a prominent trend gaining traction in the retail e-commerce market. Major players in the retail e-commerce sector are concentrating on employing the latest technologies, such as augmented reality, virtual reality, artificial intelligence, and machine learning, to enhance user experience and secure a competitive advantage. For example, in June 2022, Avataar, a 3D and augmented reality company based in India, launched a single-click integration solution for online retailers. This out-of-the-box product aims to provide consumers with an engaging 3D augmented reality (AR) shopping experience by linking with e-commerce platforms like Shopify and BigCommerce. The turnkey solution is powered by Supernova, Avataar's AI-driven computer vision and 3D content creation platform, allowing retailers to quickly create scalable 3D product catalogs. The proprietary technology can scan a merchant's existing product inventory and produce photorealistic, life-size 3D representations within hours. Avataar's platform also offers end-to-end workflow management, including quality checks and live hosting.
Major companies in the retail e-commerce sector are increasingly focusing on implementing e-commerce clouds to enhance their competitive edge. The e-commerce cloud refers to a cloud computing environment that offers scalable and flexible infrastructure, storage, and computing resources to support and host e-commerce applications and websites. For instance, in October 2023, Flipkart, an India-based e-commerce firm, introduced the Flipkart Commerce Cloud. This suite of retail intelligence solutions is designed to assist retailers and e-commerce companies worldwide in expanding their businesses and addressing business needs through intelligent, AI-driven solutions. Each solution is built with artificial intelligence and machine learning, and the system is tested for scalability daily at Flipkart. It aims to help retailers globally grow their businesses and meet their operational needs through these intelligent solutions.
In October 2022, The Kroger Co., a prominent US-based grocery retailer and retail e-commerce company, acquired Albertsons Companies, Inc. for $25 billion. This strategic move is expected to enhance Kroger's size and retail capabilities in the United States. Albertsons Companies, Inc., the acquired entity, is a US-based grocery retailer and retail e-commerce company.
Major companies operating in the retail e-commerce market include Walmart Inc., Amazon.com Inc., Apple Inc., Costco Wholesale Corporation, The Home Depot Inc., The Kroger Co, Alibaba Group Holding Ltd., Target Corporation, Dell Technologies Inc., Albertsons Companies Inc, Best Buy Co Inc., Inter IKEA Systems B.V., Hewlett-Packard Company, Macy's Inc., Coupang Corp, Otto GmbH & Co KG, Nordstrom Inc., Wayfair Inc., Rakuten Group Inc., eBay Inc., Shopify Inc., Etsy Inc., IndiaMART InterMESH Ltd., IKEA AB, Ebates Inc., Taobao, Clues Network Pvt Ltd.
Asia-Pacific was the largest region in the retail e-commerce market in 2024. The regions covered in the retail e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the retail e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The retail e-commerce market includes revenues earned by entities by providing services such as food e-commerce, grocery e-commerce, and e-commerce logistics and grocery retail. 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/or 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.
Retail E-Commerce Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on retail e-commerce market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for retail e-commerce ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The retail e-commerce market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.