Electronic Shopping

The 53,556 Electronic shopping retailers in the US are online-only retailers, with no or limited-format physical stores. The business format ranges from the independent specialized seller with one or a few lines of products to the large conglomeration of businesses selling a broad range of products on a single e-commerce website (Amazon, Etsy). Websites that bring together third-party sellers are known as marketplaces and typically earn revenue by charging sellers a fee that is either fixed or based on a percentage of sales or a number of transactions.

Fierce Ecommerce Competition

Electronic shopping sites must find ways to stand out in an e-commerce market flooded with domestic and foreign retailers as well as dominant players like Amazon.

Delivery Race Slows

The need for speed in ecommerce delivery is easing with shoppers showing a greater willingness to wait for deliveries of household items as concerns grow over the cost of fulfillment.

Jul 28, 2026 - Online Back-to-School Shopping Slows

• Back-to-school spending is expected to remain strong for the US electronic shopping industry, but a smaller share of consumers plans to shop online this year, increasing pressure on retailers to compete on price and promotions, according to the latest data from the National Retail Federation. The NRF expects K-12 spending to reach a record $43.3 billion and college spending to surpass $100 billion for the first time, driven in part by higher purchases of electronics. While 62% of shoppers began shopping by early July, many are delaying purchases to capture discounts, with 46% waiting for better deals and 54% already taking advantage of summer sales events such as Prime Day. However, only 50% of K-12 shoppers plan to shop online, down from 55% last year, while 41% of college shoppers expect to buy online, the lowest share since 2016. The results suggest online retailers will need compelling promotions and strong omnichannel strategies to capture a larger share of record back-to-school spending.
• Consumer confidence improved over the past two months, a positive sign for the US electronic shopping industry as stronger household sentiment could support online discretionary spending, even as consumers remain cautious. The University of Michigan's preliminary July 2026 Surveys of Consumers showed the Index of Consumer Sentiment rose 9.9% month over month to 54.4, while the Current Economic Conditions Index increased 15.1% to 54.9 and the Index of Consumer Expectations climbed 6.5% to 54.0, reflecting improved views of current and future economic conditions. Separately, The Conference Board's June 2026 Consumer Confidence Index edged up to 91.2, with the Present Situation Index falling to 116.4 but the Expectations Index rising to 74.4 as consumers grew more optimistic about business conditions and incomes despite weaker labor market perceptions. Together, the surveys suggest improving demand conditions for online retailers, although elevated inflation expectations and labor market concerns could temper spending.
• The Consumer Brand Manufacturer and Web-Only Retailer categories are leading growth in the US electronic shopping industry, according to a new report by Digital Commerce 360. Consumer Brand Manufacturers posted the fastest five-year CAGR at 9.3%, supported by strong brand recognition, direct customer relationships, and subscription offerings. Web-Only Retailers followed closely with a 9.2% CAGR, though Amazon was the key growth driver; without Amazon, the category’s CAGR would drop to 5.7%. Amazon itself posted a 10.1% five-year CAGR. The fastest-growing online retailer overall was Hims & Hers, which increased web sales 60.7% year over year in 2025. These trends suggest continued opportunities for electronic shopping companies that can build differentiated brands, deepen customer relationships, and use direct-to-consumer or subscription models to drive repeat sales.
• US ecommerce posted its strongest first-quarter performance since 2021, a positive sign for the US electronic shopping industry as online retail continues to outpace overall retail growth, according to a Digital Commerce 360 report. US ecommerce sales rose 9.7% year over year to $302.3 billion in Q1 2026, nearly double the 4.9% increase in total retail sales and marking the first non-holiday quarter in which online sales exceeded $300 billion. Ecommerce accounted for 23.8% of retail sales—its highest first-quarter penetration on record—reflecting consumers' continued shift toward online shopping. Online grocery sales grew more than 20%, supported by faster delivery options from retailers such as Amazon, Walmart, Kroger, and Albertsons. While economic uncertainty and global conflicts remain risks, the results indicate strong momentum for online retailers and continued investment in fulfillment and last-mile delivery capabilities.

Industry size & Structure

The average electronic shopping retailer operates out of a single location, employs 15 workers, and generates $21 million annually.

• The electronic shopping retailer industry consists of 53,556 companies that employ over 780,598 workers and generate $1.1 trillion annually.
• The industry is concentrated at the top and fragmented at the bottom with the top 20 firms accounting for about 53% of industry sales.
• Large companies include Amazon, eBay, QVC Group, Etsy, Wayfair, and Zara. Many large companies have international operations.