Electronic Shopping NAICS 459999

Jan 28, 2026 - Returns Growth Adds Margin Risk for Online Retailers

• According to a report in Digital Commerce 360, elevated return activity during the 2025–2026 holiday season is increasing cost and margin pressure across the US electronic shopping industry. Globally, consumers returned 12.2% of online orders between Jan. 1 and Jan. 14, a 3% year-over-year increase, according to Salesforce. Returns tied to online purchases from Nov. 1 through Dec. 31 totaled more than $181 billion, representing 14% of all online sales and a 10% annual increase, even as U.S. holiday ecommerce spending reached a record $1.29 trillion, up 7% year over year. Signifyd data show overall retail returns rose 17% in 2025, with 48% of returns classified as “significantly not as described,” highlighting fulfillment and product accuracy challenges. Rising return rates and higher levels of fraudulent and abusive returns are likely to weigh on profitability and operational efficiency for US online retailers.
• Amazon’s latest restructuring moves signal a sharper focus on efficiency and online-first growth within the US electronic shopping industry, according to recent reports. CNBC reports the company plans to lay off about 16,000 corporate employees, following 14,000 cuts in October, bringing total corporate and tech layoffs since last fall to roughly 30,000, or about 10% of that workforce. At the same time, Amazon is shutting down all 57 Amazon Fresh and 15 Amazon Go stores after concluding the formats lacked a scalable economic model, according to the Wall Street Journal. These actions underscore Amazon’s shift away from experimental brick-and-mortar retail toward core ecommerce, same-day delivery, and AI-driven operations. While physical store closures reduce Amazon’s retail footprint, the company is reallocating capital toward online fulfillment, AI investment, and data centers, with 2026 capital expenditures projected at $125 billion. For the broader US electronic shopping industry, the moves highlight intensifying pressure to streamline costs, prioritize scalable digital channels, and improve operational efficiency amid evolving consumer demand.

• Generative AI is reshaping the electronic retail sector by driving measurable gains in sales and customer engagement, according to research from Columbia Business School and partners. The researchers found that AI enabled workflows boosted sales by up to 16.3%, with AI powered chatbots lifting conversion rates by 21.7%. Search refinement added nearly 3% in sales, while richer product descriptions drove a 2% increase, particularly for listings with limited detail. Aggregated, the improvements equated to $4.6 to $5 in added annual value per consumer, accounting for roughly 6% of global e-commerce per user revenue growth between 2023 and 2024. Notably, gains came without labor cuts, instead enhancing customer experience through smoother shopping journeys. Smaller sellers and newer shoppers benefited most, with conversions among inexperienced buyers rising 26%, compared to 20% for veteran consumers. For electronic retailers, the findings highlight AI’s role as a market equalizer, narrowing performance gaps while reinforcing the need to integrate customer centric digital tools.
• January 2026 consumer sentiment data point to a cautious spending environment for the US electronic shopping industry, despite modest month-over-month improvement, according to the University of Michigan's Survey of Consumers. The Index of Consumer Sentiment rose 6.6% from December to 56.4, but remained 21.3% below January 2025, signaling ongoing pressure on discretionary online purchases. Current Economic Conditions increased 9.9% to 55.4, yet were still 26.2% lower year over year, reflecting continued strain on household purchasing power. Consumer Expectations rose 4.4% to 57.0, but were 18.0% below last year, suggesting limited confidence in near-term economic momentum. While year-ahead inflation expectations eased to 4.0%, they remain elevated relative to pre-pandemic norms. Persistent concerns around prices and labor market weakening are likely to keep US online shoppers price-sensitive, favoring value-driven purchases and promotions over higher-ticket discretionary ecommerce spending.