Retail E-Commerce Market Size, Share, Trends, Growth and Forecast 2032

Retail E-Commerce Industry Prospective:

The global retail e-commerce market size was worth around USD 5.72 billion in 2023 and is predicted to grow to around USD 15.29 billion by 2032 with a compound annual growth rate (CAGR) of roughly 11.53% between 2024 and 2032.

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Retail E-Commerce Market: Overview

Retail e-commerce refers to the process of using online portals to sell products or services directly to consumers. The demand for the retail e-commerce industry has been influenced by the increased influx of consumers for online shopping, which is known to have several advantages.

Retail e-commerce is beneficial to brands and companies since it allows them to connect to a large audience with minimum investment. Unlike brick-and-mortar retail stores, retail e-commerce limits the investment required to build and operate a physical shopping unit. Product sellers have to invest in developing a functional website and primarily focus on customer experience to ensure long-term survival. Investments in retail e-commerce have surged in the last decade, influenced by an increase in the number of consumer electronic product users and access to faster internet. In addition, companies operating in the retail e-commerce sector have been incorporating innovative strategies to expand into newer markets and attract domestic consumers.

For instance, the emergence of food & grocery delivery applications has registered greater adoption in urban areas. In addition, during the forecast period, the use of advanced technologies such as drone-based deliveries, Artificial Intelligence (AI), and Machine Learning (ML) will help retail e-commerce solution providers generate greater revenue.

Key Insights:

• As per the analysis shared by our research analyst, the global retail e-commerce market is estimated to grow annually at a CAGR of around 11.53% over the forecast period (2024-2032)
• In terms of revenue, the global retail e-commerce market size was valued at around USD 5.72 billion in 2023 and is projected to reach USD 15.29 billion by 2032.
• The retail e-commerce market is projected to grow at a significant rate due to the growing use of consumer electronics and access to faster internet.
• Based on product, the apparel & accessories segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on type, the hybrid marketplace segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Retail E-Commerce Market: Growth Drivers

Growing use of consumer electronics and access to faster internet will help fuel the market demand rate

The global retail e-commerce market is expected to grow due to the increasing number of consumer electronics users worldwide. According to market analysis, technological literacy among the general population across age groups has improved significantly in the last few years. Around 5 billion people worldwide currently use some form of smartphone with internet connections. The trend is enabled by several factors.

For instance, a steady increase in disposable income and the availability of highly affordable smartphones & tablets have been crucial to the consumer electronics industry penetrating remote markets. In addition, several smart consumer electronic providers offer financial assistance through credit card payments and equated monthly installments (EMIs), which encourage more consumers to purchase trending smartphones. The demand for retail e-commerce is further facilitated by access to affordable internet. The ongoing work toward developing a robust infrastructure surrounding the 5G network worldwide is expected to open more avenues for future growth for companies in the retail e-commerce business.

In December 2024, Nokia, a prominent player in the telecommunication industry, announced a partnership with EOLO, a Benefit Corporation. The companies will work toward deploying the first 5G standalone mmWave Radio Access Network in Italy, connecting remote locations. Online shopping offers several advantages to the general population as well as businesses, and hence the industry has witnessed greater adoption.

Increased demand for food & grocery delivery applications will generate higher revenue in the coming years

One of the key segments of the solutions available in the global retail e-commerce industry is in the form of food & grocery delivery applications. These solutions have registered excellent popularity in urban areas where the population has limited free time to shop for groceries or cook extensive meals.

In addition to this, grocery and food delivery providers have consistently evolved over the years, offering well-packaged, fresh end-products. The quick and easy doorstep delivery process has helped them gain extreme popularity among the masses. In April 2024, Uber Eats announced the launch of a short-form video feed feature like TikTok to improve the discovery of new food items and restaurants.

Retail E-Commerce Market: Restraints

Online fraud, data theft, and cyber-crimes to limit industry’s expansion trends

The global retail e-commerce industry is expected to be restricted due to the growing cases of online fraud registered across major websites. For instance, retail e-commerce channels are filled with counterfeit products sold at high prices. In 2023, Amazon, one of the leading e-commerce platforms globally, disposed of and seized over 7 million counterfeit products, according to the company’s official reports. In addition, e-commerce channels are prone to other forms of cyber-crimes and data theft, including the invasion of private information and financial data. According to market analysis, more than 2 billion people worldwide have been victims of online fraud in recent times.

Retail E-Commerce Market: Opportunities

Incorporation of advanced technologies such as AI and ML to generate more expansion possibilities

The global retail e-commerce market is expected to generate growth opportunities due to the increasing integration of cutting-edge technologies to improve customer experience and website performance. For instance, in December 2024, Alibaba International Digital Commerce Group announced the US launch of Pic Copilot. It is an advanced AI-driven e-commerce design tool specifically for small & medium enterprises.

According to official reports, the new feature can help companies reduce design and photography costs while also focusing on improving sales. In November 2024, Amazon announced the beta launch of Rufus in the Indian market. It is a novel, generative AI-powered shopping assistant aimed at improving product navigation, sales, and overall shopping experience.

In November 2024, Perplexity, a leading player in the AI-powered search engine sector, announced that it would extend AI for shopping by adding a new shopping feature on the platform. Additionally, retail e-commerce companies are seeking new ways to make timely delivery while also focusing on detecting online fraud and reducing data theft.

Retail E-Commerce Market: Challenges

Managing supply chain disruptions can be challenging for the industry players

The global retail e-commerce industry is expected to be challenged by concerns over supply chain disruptions caused by several environmental, social, or political factors. For instance, in 2020, India announced a ban on several Chinese websites, including e-commerce channels. Platforms such as Shein and Alibaba are inaccessible in India, thus affecting the business performance of the former companies. Managing customer loyalty in the ever-growing competitive industry can also be difficult for the market players.

Retail E-Commerce Market: Report Scope

Retail E-Commerce Market: Segmentation

The global retail e-commerce market is segmented based on product, type, and region.

Based on product, the global market segments are electronic goods, furniture & household decor, footwear, apparel & accessories, personal care & beauty care, groceries, and others. In 2023, the highest growth was listed in the apparel & accessories segment. Changing consumer lifestyles and the growing trend of fast fashion have resulted in an increased demand for modern apparel and accessories. In 2023, Amazon sold over USD 55 billion worth of clothing items in the US. Similarly, other platforms have been registering increased demand for trendy clothing items and accessories.

Based on type, the global market divisions are a pure marketplace, hybrid marketplace, retail chain, and brand. In 2023, the highest growth in the hybrid marketplace. Such platforms allow brand retailers to connect with audiences while also selling their own products or inventory. Hybrid marketplaces are growing steadily since e-commerce platforms are investing in developing their own products and leveraging the presence of a larger consumer base. For instance, Amazon has sold nearly 500 million devices enabled with Alexa, a company-owned virtual assistant technology.

Retail E-Commerce Market: Regional Analysis

Asia-Pacific to generate the highest return on investment during the forecast period

The global retail e-commerce market will be dominated by Asia-Pacific during the projection period. Asia’s e-commerce industry has been one of the fastest-growing sectors in the last 5 years, driven by the growing consumer base across major Asian countries. China, India, South Korea, Singapore, and Japan lead the Asia-Pacific region in terms of revenue. China, for instance, is home to one of the largest e-commerce companies globally under the name Alibaba.

In addition, Chinese e-commerce retailers, especially in the fashion and personal care industries, have witnessed increased demand in the regional as well as international markets. Shein, China’s leading fast fashion brand operating through online portals, has more than 74 million active users worldwide. In addition, Asia-Pacific has high domestic demand for retail e-commerce businesses across industries, including brands offering automotive parts, food & beverages, and others. In September 2024, Shopee, an e-commerce platform announced a partnership with YouTube for the launch of an online shopping service in Indonesia. Shopee plans to expand its presence in the Southeast Asian market with this move.

Retail E-Commerce Market: Competitive Analysis

The global retail e-commerce market is led by players like:

• Walmart
• Amazon
• Home Depot
• Best Buy
• Rakuten
• Alibaba
• Zalando
• ASOS
• eBay
• Wayfair
• JD.com
• Macy's
• Costco
• Target
• Shopify

The global retail e-commerce market is segmented as follows:

By Product

• Electronic Goods
• Furniture & Household Decor
• Footwear
• Apparel & Accessories
• Personal Care & Beauty Care
• Groceries
• Others

By Type

• Pure Marketplace
• Hybrid Marketplace
• Retail Chain
• Brand

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa