Enjoy complimentary customisation on priority with our Enterprise License!
The B2C e-commerce market in US is estimated to grow at a CAGR of 8.12% between 2022 and 2027. The size of the market is forecast to increase by USD 233.66 billion. This report extensively covers market segmentation by type (B2C retailers and classifieds), application (consumer electronics and home appliances, apparel and accessories, personal care, and others), and platform (multi-brand and single-brand). Furthermore, the report includes historic market data from 2017 to 2021 and a forecast analysis of market dynamics, size, market segments, and vendor analysis. According to our industry experts, the size of the market was USD 246.11 billion in 2017. The growth of the market depends on serval factors, including a rise in online spending and smartphone penetration, advantages of e-commerce platforms, and increasing investments by e-commerce vendors.
To learn more about this report, Download Report Sample
Technavio categorizes the US Business-to-Customer (B2C) e-commerce market as a part of the global Internet and direct marketing retail market within the global retailing market. The parent global Internet and direct marketing retail market cover revenue generated by companies providing retail services primarily on the Internet, through mail orders, door-to-door retailers, and TV home shopping retailers. It also includes companies providing online marketplaces for consumer products such as home and garden products and services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rise in online spending and smartphone penetration is notably driving the market growth, although factors such as the criticality of logistics management leading to high overhead costs may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key B2C E-Commerce Market Driver in US
The rise in online spending and smartphone penetration is the key factor driving the US B2C e-commerce market growth. An increase in Internet penetration has been a key driver of the growth of the market. Online shopping through smart devices has gained popularity over the years because of the high penetration of Internet services in the US, the shift of consumers to online platforms, and the upgrades in the purchase and delivery options with the emergence of m-commerce. The increasing emphasis on mobile commerce (m-commerce) is mainly driven by the purchase of millions of new smartphones and the creation of more opportunities for buyers to shop.
A few of the major retailers, such as Amazon and Walmart, have their own mobile applications. eBay and Amazon are the two major vendors in the online space and have mobile applications that are compatible with Windows, Blackberry, iOS, Android, and other operating systems. These platforms help users shop conveniently using their mobile devices. Thus, the increasing smartphone penetration, augmented with a rise in online spending in the US, will drive the market in focus during the forecast period.
Key B2C E-Commerce Market Trend in US
The emergence of omnichannel retailing is the primary trend in the US B2C e-commerce market. Omnichannel retailing is an emerging trend that allows manufacturers to sell their products through both offline and online channels. The online retail channel comprises company-owned platforms (company websites) and popular e-commerce websites. Consumers look for information on products and new releases on the Internet. Major retailers and companies that manufacture consumer goods do not consider physical storefronts as an alternative to online businesses; however, they consider the online platform as an additional sales channel to increase their market presence. Online presence aids these companies in expanding their business reach and brand awareness.
Moreover, Evolving customer shopping patterns, changing online purchasing behaviour, and the growth in the number of digitally driven customers, especially the Millennial population, are some factors that encourage vendors to take up online retailing. Therefore, several retail brands, such as Bed Bath and Beyond, have entered the online space and are adopting the omnichannel model. This is expected to increase the online sales of B2C e-commerce products in the US at a significant rate during the forecast period.
Key B2C E-Commerce Market Challenge in US
The criticality of logistics management leading to high overhead costs is a major challenge to the US B2C e-commerce market growth. Issues in logistics management, such as the lack of proper postal addresses and logistical complications, such as late product delivery and chaotic routing, are important aspects that can have a negative impact on the B2C e-commercial market in the US. These factors can increase the overhead costs for e-commerce companies and weaken their profit margins. The lack of standard delivery services also discredits the brand image of the company, thereby reducing the customer base. International online retailers from the US incur huge losses owing to such problems.
Online retailers hire many field workers to ensure better delivery services, which adds to their labor costs. This additional cost is paid from the vendor's profits, thereby reducing their profit margins. Therefore, e-retailers should focus on effective product distribution by partnering with well-established and regional third-party logistics providers. This prevents them from incurring additional costs on labor. The proper distribution of products can also prevent a decrease in profit margins. In case any complication arises, the third-party logistics providers will be responsible for solving the problem.
Key B2C E-Commerce Market Customer Landscape in US
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global B2C e-Commerce Market Customer Landscape in US
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
amazon.com - The company offers B2C e-commerce services such as BENGOO G9000 Stereo Gaming Headset for PS4 PC Xbox One PS5 Controller and other headsets.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the B2C retailer segment will be significant during the forecast period. The increasing presence of online shopping has been a major factor driving the increased penetration of e-commerce services among B2C companies. Another major factor driving the growth of the segment is increasing retail e-commerce sales in the US. The growing adoption of e-commerce payment platforms and their ability to ensure secure online transactions have also attracted many customers to shop for consumer goods on e-commerce websites in the US. Most online shoppers prefer to make payments for their online orders through e-commerce payment platforms that are secured using the latest payment processing technologies. Such factors will increase the growth of the Business to Consumer E-Commerce Market in US.
Get a glance at the market contribution of various segments Request a PDF Sample
The B2C retailer's segment was valued at USD 138.64 billion in 2017 and continue to grow by 2021. The increasing penetration of mobile devices has had a positive impact on the growth of this segment. Both mobile devices and tablets are witnessing significant growth in adoption in the US. Although several B2C companies initially offered their services through websites, the high penetration of mobile devices has encouraged them to develop mobile-compatible applications to enhance the experience of customers. These online shopping apps are designed to offer better connectivity and easy payment options for a more convenient online shopping experience. Furthermore, these apps also record the personal information of the user, which helps market vendors retain these customers through targeted advertising and by providing a customized shopping experience. The high penetration of mobile computing devices, such as smartphones and tablets, is primarily attributed to factors like high digital literacy and high per capita income. All these factors provided high growth opportunities for Business-to-Customer (B2C) e-commerce market in 2022.
Home and Garden Products B2C E-commerce market - The market share is estimated to grow at a CAGR of 10.53% between 2022 and 2027.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (B2C retailers and Classifieds), Application (Consumer electronics and home appliances, Apparel and accessories, Personal care, and Others), and Platform (Multi-brand and Single-brand).
B2C E-Commerce Market in US Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.12% |
Market growth 2023-2027 |
USD 233.66 billion |
Market structure |
Fragmented |
YoY growth (%) |
6.91 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., ASOS Plc, Bed Bath and Beyond Inc., Best Buy Co. Inc., Costco Wholesale Corp., eBay Inc., Etsy Inc., Inter IKEA Systems B.V., Kohls Corp., Kroger Co., Lowes Companies Inc., Macys Inc., Poshmark Inc., Target Corp., The Gap Inc., The Home Depot Inc., Walmart Inc., Wayfair Inc., Williams Sonoma Inc., and Zara |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Market Segmentation by Platform
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.