U.S. E-Commerce Trends: What You Need to Know
The United States is one of the most dynamic and fast-growing e-commerce markets in the world. Although it was slower to adopt online shopping compared to some other countries, it's now experiencing strong and steady growth. Here's a quick look at what’s happening in the U.S. e-commerce landscape and why it matters for global merchants.
A Market on the Rise
The U.S. e-commerce market is now worth over $1.1 trillion, with 77% of the population shopping online. After years of slower growth, things have accelerated, thanks in part to the convenience of online shopping and traditional mall-based retailers going digital.
- Amazon dominates the market with 38.1% share, followed by Walmart (5.3%) and eBay (4.7%).
- Big shopping events like Black Friday and Amazon Prime Day create spikes in sales and competition.
Click-and-Collect Takes Off
During the pandemic, U.S. retailers rapidly expanded curbside pickup and app-based ordering. These services have become a long-term habit for many consumers.
- For example, Target reported a 500% increase in "Drive-Up" orders year-over-year.
- These changes reflect the growing trend toward omnichannel shopping, where physical and digital experiences are combined.
Mobile & Social Commerce Are Booming
Mobile shopping now makes up 45% of all e-commerce sales in the U.S. and is expected to grow even more in the coming years.
- Social media platforms like Instagram and Pinterest are fueling this growth, especially in categories like fashion and beauty.
- Instagram Drops, launched in 2021, let shoppers buy limited products directly within the app—making it easier than ever to shop on the go.
How Americans Pay Online
When it comes to payment methods, Americans prefer credit cards and digital wallets:
- 58% of online purchases are made with credit cards.
- 26% use digital wallets, with PayPal leading the way.
- The U.S. has 3.26 credit cards per person, showing a strong culture of credit-based spending.
- Digital wallets are growing fast, expected to rise by 14% annually through 2024.
Cross-Border Shopping Is Still Small, But Growing
Only about 33% of U.S. online shoppers buy from international stores, and cross-border sales account for just 7% of total e-commerce in the U.S. However, this still represents a significant $76.9 billion market.
Interestingly, in May 2020, cross-border sales grew by 42% year-over-year, showing that international interest is gaining momentum, even if unevenly.
Buy Now, Pay Later Gaining Popularity
The U.S. is catching up to other regions when it comes to Buy Now, Pay Later (BNPL) options. Companies like Klarna are seeing rapid growth, with U.S. user numbers doubling to 17 million by April 2021.
Room for New Players
While Amazon still holds a big share of the market, its dominance is slowly declining. This could create new opportunities for smaller brands to enter the U.S. market. That said, joining platforms like Amazon can still offer huge benefits through their reach and logistics.
Final Thoughts
The U.S. e-commerce market is evolving fast driven by mobile shopping, curbside pickup, digital payments, and omnichannel strategies. For international sellers, this presents a powerful opportunity to reach one of the world’s most valuable online shopping audiences.
Whether you’re an established brand or just starting out, understanding and adapting to these trends is key to success in the U.S. market.
KSRIO.COM
We enable new entrants to compete with the big players using technology, AI and deep expertise. You can reach out to us for a free no obligations quote at KSR Innovative Operations