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The US is considered the world's most developed market for online shopping and is a global standard for eCommerce. The eCommerce segment accounts for over $1 trillion in annual retail sales in the US, or 13% of the total retail industry and $5 trillion globally.
This tremendous growth is led by some of the top eCommerce companies such as Amazon, eBay, and brick-and-mortar retailers like Home Depot.
There has been a significant improvement in the annual eCommerce web sales, especially due to the accelerated adoption of online shopping during the COVID-19 pandemic.
Here's a list of the top eCommerce companies in the US in terms of web sales.
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ecommerce companies usa
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Founded in the US in 1994, today, Amazon is the undisputed leader in the retail segment across the world. The platform started as an online bookstore that later diversified to a range of products, including electronics, apparel, media, furniture, food, toys, and jewelry.
With a US traffic tally of a whopping 2.1 billion visits in January 2022, Amazon’s total monthly visits in this market are almost 3.3 times the size of its nearest competitor, eBay. Likewise, in terms of market share, Amazon’s US eCommerce market share (41%) is nearly 10 times more than that of eBay (4.2%).
A pioneer in the eCommerce segment, eBay is one of the biggest online marketplaces that allow both people and businesses to sell directly through its online auction platform.
Starting small in 1995, eBay soon expanded to more than 20 countries, organizing the sale of products ranging from electronics, fashion, cars and vehicles, home and garden furnishings, to sports and toys.
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Launched in 1883, Kroger began investing in online grocery many years prior. In 2018, the brand formed a partnership with UK-based tech company Ocado to improve the efficiency with which online grocery orders are fulfilled.
The partnership aimed to use automation and AI technology to better fulfill online grocery orders. Most Kroger customers today enjoy pickup and delivery options, and the retailer is expanding its partnership to develop additional fulfillment facilities and robust in-store technologies.
Apple.com, operated by Apple, Inc., is the brand’s online store that generates eCommerce net sales mainly in the United States as well as in Greater China and Japan.
In terms of the product range, apple.com specializes in the electronics and media category, particularly in the area of consumer electronics.
Etsy is a popular marketplace focusing on handmade or vintage products and unique factory-manufactured items.
The platform enables people and companies to sell directly to the website’s users a wide range of art and photography products, food, bath and beauty products, clothing and accessories, toys, and other diverse items.
IKEA is a well-known home furnishing retailer that has grown leaps and bounds since its inception in 1943.
During the past year, the retailer has been able to grow its sales and eCommerce business to 12.966 million U.S. dollars.
Ikea’s eCommerce share of sales also increased from 18% to 30% due to measures such as the retailer transforming its stoes to serve as fulfillment points, revamping its website, and continuing its rollout of the Ikea app.
Shop BBC is an online platform that allows customers to shop for everything from award-winning mysteries and classic dramas to natural history.
It’s considered a reliable platform for sourcing award-winning programs that entertain, inform, and inspire viewers.
The Home Depot is the largest hardware and home improvement supply retail company in the United States, with more than 2,200 stores across the country.
Home Depot sells a range of items, including construction products, home and garden equipment, tools, furniture, and associated services. Home Depot also operates in countries like Canada and Mexico.
Best Buy is another US retailer with a long history spanning back to the 60s. Starting as a consumer electronics retailer, Best Buy soon grew to be a dominant brand with several brick and mortar stores across the country, as well as in Canada and Mexico.
The eCommerce giant offers customers a wide range of products today, including electronics, consumer appliances, travel, furniture, fitness, baby products, etc.
Founded in 2002, Infobae América is a news media website focused primarily on technology, politics, economics, sports, entertainment, etc.
It is a leading news portal from Argentina offering various programs and news articles to inform, educate, and entertain people.
Dell.com, operated by Dell, Inc., is a popular online store that generates eCommerce net sales primarily in the United States as well as in Japan and the United Kingdom.
Dell’s online store was launched in 1996. In terms of product range, dell.com amasses the biggest part of its eCommerce net sales in the electronics and media and hobby and DIY categories.
HP INC has recently embarked on a major milestone with the introduction of the new Omnichannel HP Experience Hub, which offers a hyper-personalized experience for technology buyers across South-East Asia.
Humanizing the modern eCommerce experience, the hub is HP’s first physical flagship store with an integrated online-to-offline feature experience that provides a seamless omnichannel, real-time, and immersive in-store experience.
Target is the second-largest department store retailer behind Walmart. It operates more than 1,800 stores all over the United States.
Apart from being a diversified online store, Target sells a range of products, including fashion, home decoration, furniture, groceries, electronics, and hygiene products. It received 192 million total US visits in January 2022.
Costco or Costco Wholesale Corporation is a well-known chain of warehouse clubs.
Popular for selling a wide range of products, including computers, electronics, furniture, outdoor living, appliances, jewelry, and more, the company has more than 750 warehouses across the globe.
Among the main markets, Costco has a presence in the US, Canada, the UK, Japan, South Korea, Taiwan, Mexico, Australia, Spain, Iceland, and France.
Wayfair is one of the top eCommerce companies in the US that specializes in furniture and home goods. The company was founded in 2002 as CSN Stores and offers an open marketplace to suppliers to sell their products directly to digital customers.
To further expand its digital footprints, Wayfair has developed various offices and warehouses throughout the United States and has also expanded its operations abroad in regions like Germany, Canada, Ireland, and the United Kingdom.
Mercari is a Japanese eCommerce company that is also the largest C2C online marketplace in Japan. Founded in 2013, Mercari entered the US market in 2014, aiming to use the potential of the US market as a stepping stone for global expansion.
The platform is essentially a smartphone-focused C2C marketplace app allowing anyone with a smartphone to easily sell items they no longer need, offering a new and unique user experience.
Nike, a US-based sportswear giant, has recently accelerated its digital transformation by expanding its global supply chain and making significant investments in digital technologies and other information systems to power D2C eCommerce.
As part of this endeavor, it set out to reach 30% digital penetration by 2024, meaning that 30% of total sales would be Nike’s eCommerce revenue.
Zara.com, operated by Zara USA, Inc., is an online store with a wide international focus that generates eCommerce net sales primarily in the United States as well as in the United Kingdom and Spain.
Concerning its product range, zara.com amasses most of its eCommerce net sales in the fashion/apparel category.
Launched in the 1990s, Macy’s is a US fashion giant. The company started as a brick-and-mortar retailer and soon became a global brand with locations in various countries, along with a leading eCommerce site in fashion and apparel.
Macy’s eCommerce site boasts a wide line of accessories, beauty products, cosmetics, clothes, as well as home and decoration products.
H&M.com is an online store operated by Hennes & Mauritz GBC AB. The brand generates eCommerce net sales primarily in the United States, Germany, and Sweden.
In terms of its product range, h&m.com achieves the greatest part of its eCommerce net sales in the fashion category.
One of the largest eCommerce marketplaces in the US and the world, Wish offers a huge variety of affordable products to consumers worldwide.
The company is revolutionizing the way consumers shop by offering them a personalized and entertaining experience that is accessible to all through their mobile devices.
Founded in 2010, Wish leads in categories including computer electronics and technology, video games, consoles, accessories, and adult items.
Based in Englewood Cliffs, LG Electronics USA, Inc., (LGEUS) is the North American subsidiary of LG Electronics, Inc. It is a $48.5-billion global giant in consumer electronics, home appliances, and mobile communications.
In the United States, LGEUS sells a wide range of digital display and digital media products along with digital appliances and mobile phones under LG’s “Life’s Good” marketing theme.
Chegg is an online business based in Santa Clara, California, that primarily operates in the ‘learning’ space of the sharing economy.
At its inception, the company employed a product business model, mainly offering textbooks to rent both in digital and hard-copy formats. The company further evolved into a diverse portfolio of business models to offer a range of digital services to students by connecting them with tutors, intern-seeking companies, as well as with various bodies offering scholarships.
The Disney Movie Club is primarily a subscription service designed for Disney films. Since Disney has a huge library of movies under its banner that continues to grow, Disney created the Disney Movie Club.
By taking the deal, customers agree to purchase five more DVDs at $19.95 per movie plus free shipping and processing for the next two years.
Founded in 2000, Deviant Art is the largest online social network for artists and art enthusiasts alike.
The platform allows both established as well as novice artists to collaborate, exhibit, promote, and share their artwork with a collective art-centric community.
The company has over 61 million registered members and attracts over 45 million unique visitors per month.
Springer is a popular and leading global scientific, technical, and medical portfolio, offering researchers in scientific institutions, academia, and corporate R&D departments with high-quality content through innovative information, products, and services.
Asus.com, operated by ASUSTeK Computer, Inc., is another internationally-focused online store that generates eCommerce net sales primarily in the United States.
Other than the US, the other markets where the brand generates eCommerce sales include Greater China and Japan.
With regards to the product range, asus.com specializes mainly in the electronics and media category, particularly in the area of consumer electronics.
The second-largest home improvement and hardware chain in the United States, Lowe’s has more than 2,000 stores throughout the country.
Lowe’s sells a wide array of construction materials, furniture, home and garden equipment, and tools online through its eCommerce platform.
DoorDash is an online food ordering company that is all set to make $48.57 billion worth of gross merchandising value sales and is projected to become the third-largest eCommerce banner, behind Amazon and Walmart, by 2025.
Operated by Lenovo Group, Ltd., Lenovo.com is an internationally-focused online store that generates eCommerce net sales primarily in the United States, Japan, and Germany.
The company specializes in the electronics and media categories, particularly in the area of consumer electronics.
Xbox is a video game console system developed by Microsoft. The Xbox was Microsoft’s first entry into the world of console electronic gaming and was released in 2001, which placed it in competition with Nintendo’s GameCube and Sony’s PlayStation.
Old Navy is a popular American clothing and accessories retailing company owned by Gap Inc.
The company opened its first store in 1994. It was the fastest retailer to reach $1 billion in sales within four years and soon became one of the largest apparel brands in the world.
Founded in 1993, NVIDIA is known for developing integrated circuits used in electronic game consoles and PCs.
Headquartered in Santa Clara, California, the company is a leading manufacturer of high-end graphics processing units (GPUs) and generates its eCommerce net sales primarily in the United States as well as in Greater China and Russia.
Launched in 1996, iherb.com is operated by iHerb, Inc. It is a California-based retailer with over 1,200 brands and 30,000 natural products.
The brand generates its eCommerce net sales primarily in the United States as well as in Russia and Japan.
In terms of its product range, iherb.com achieves the greatest part of its eCommerce net sales in the food and personal care categories.
Launched in 2011, chewy.com is an online store operated by Chewy, Inc.
The brand’s eCommerce net sales are generated almost entirely in the United States.
Boasting a high product range, chewy.com specializes in various segments, including toys, hobbies, and DIY.
A part of SportsLine USA, Inc., an Internet-based sports media company, CBS Sport is a sports information and eCommerce site that publishes CBS SportsLine.
The company was originally founded in 1994, and its Internet sports service was renamed CBS SportsLine in 1997 as part of an exclusive five-year promotional and content agreement with CBS Sports.
Walgreens Boots Alliance is an integrated healthcare, pharmacy, and retail leader in the US.
The company serves millions of customers and patients every day, with a 170-year long legacy of caring for communities.
Walgreens is a trusted, global innovator in retail pharmacy with approximately 13,000 locations across the major markets, including the US, Europe, and Latin America, and plays a critical role in the healthcare ecosystem.
CVS Health Corporation is the leading health solutions company in the US that helps customers navigate the healthcare system as well as their personal health care by improving access and lowering costs.
As of December 31, 2021, the company operates approximately 9,900 retail locations and 1,200 MinuteClinic locations, as well as online retail pharmacy websites, LTC pharmacies, and onsite pharmacies.
Formerly known as CVS Caremark Corporation, the company changed its name to CVS Health Corporation in September 2014.
Launched in 2011, Poshmark is an eCommerce platform that allows users to buy and sell used or new clothing and accessories.
Poshmark became a multimillion-dollar retailer in a very short time, soon rising up to the ranks of eBay and Etsy.
A leading social marketplace in the US, the company recently announced several product innovations and a new team to support its millions of sellers across geographies, including the US, Canada, Australia, and India.
For many, shopping is a delightful pastime. For others, it's just another chore to check off the list.
Regardless of where you stand on that question, we all need essentials like food, attire, and household items. Thankfully, we have tons of choices as to where, when, and how we shop.
Do you prefer meandering through store aisles with a coffee in hand, enjoying background tunes? Or, would you rather shop from the comfort of home, and refresh your closet or refill your kitchen shelves while waiting for dinner to cook?
Online shopping vs in-store shopping: how are they different, and which channel reigns supreme?
Before we dive in, let’s define exactly what we’re talking about here.
When we say “in-store shopping,” we’re referring to traditional brick-and-mortar retail. A shopper visits a physical establishment to evaluate, select, and purchase goods or services.
This tangible shopping experience allows direct interaction with products, and buyers usually have immediate possession of purchased items. They can also speak with human sales representatives to get help or ask questions. Payment is commonly made through card-present transactions, where a physical payment card or other methods like cash and checks are presented and processed on-site. The buyer then receives a tangible receipt as proof of their purchase.
Online shopping is a form of digital commerce wherein consumers purchase goods or services over the internet using a web browser or mobile application.
Characterized by its boundaryless nature and round-the-clock availability, this shopping method relies on card-not-present (CNP) transactions. The buyer provides payment details remotely without physically presenting the payment card and receives a digital receipt for the transaction. The goods are then shipped to the buyer, or the buyer is able to pick their order up from a designated place.
Essentially, online shopping allows customers to make purchases from anywhere, 24 hours a day. In-store shopping, on the other hand, allows customers to walk away with the items they want to purchase right away. However, the latter requires walking into a physical store to make purchases with a debit or credit card.
There's an ongoing debate in the ever-evolving landscape of commerce: the allure of the digital shopping cart versus the tactile experience of a physical store.
Both avenues cater to different facets of the consumer experience. Let's delve deeper into the nuances of online shopping and in-store shopping by exploring a few of the top “pros” of each channel:
Both shopping methods have their advantages, offering a wide array of choices for buyers depending on their needs and preferences.
Online shopping extends the frontiers of convenience, but in-store experiences resonate with touch, feel, and immediacy. It's a dynamic world, and each mode has its rhythm, echoing the diverse preferences of the global consumer.
Expanding into new sales channels? Make sure you’re protected against new threat sources.
While there are certainly benefits to both shopping models, they also come with unique challenges. So now, let's delve into the potential cons associated with each:
Again, consumers and merchants need to weigh the pros and cons of each option. Shoppers should base their purchasing decisions on their individual needs and preferences. Merchants, however, should do what they think will best position them to serve customers in a cost-effective manner.
Consumers across all age groups increasingly rely on the internet for their shopping needs. Whether it's the allure of time-saving or the potential for cost savings through great deals, online shopping is an appealing choice for many.
We can expect a 10.4% increase in online shopping by year’s end, accounting for $6.3 trillion dollars in total consumer spending. That said, 73% of shoppers still prefer in-store shopping vs online shopping. Another phenomenon here is omnichannel retail; these exchanges often start with a customer shopping online, but finishing their experience in person to get the best deals.
Physical stores eliminate shipping fees, present real-time promotional offers, and provide the tangible experience of inspecting a product firsthand. Certain retail experiences, especially those requiring personalized service or involving food and beverages, cannot be replaced by the digital domain.
Ultimately, there is ample room for both methods in a given retail strategy, often with one hand feeding the other. As we’ll see below, savvy merchants prioritize a hybrid sales approach bolstered by increased personalization and omnichannel marketing efforts.
The retail landscape is undergoing constant metamorphosis, driven by technology and evolving consumer preferences. That’s why it's important for all stakeholders to stay informed and adaptive.
Several transformative trends are reshaping the very fabric of retail. There’s the seamless integration of online and offline shopping experiences, as well as the prominence of AI-driven personalization. Through it all, the lines between online and in-store shopping are getting increasingly blurry.
Some of the top trends driving this shift include:
#1
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Omnichannel RetailOmnichannel shopping now accounts for roughly 27% of all retail sales. Gone are the days when retailers could afford to operate purely through a single channel. Platforms like Etsy and eBay might still be digital-only, but the broader trend leans towards a blend of physical stores, websites, mobile apps, and social media channels.
45% of in-store shoppers expect sales associates to be knowledgeable about online-only products. And, since the pandemic, over a third of Americans have integrated features like in-store pickup into their shopping habits. A majority plan to continue this trend. In response, many brands are creating ecosystems for an “always-on” customer engagement approach.
#2
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AI & PersonalizationModern consumers crave personalized shopping experiences. Retailers are tailoring recommendations and marketing campaigns using customer data, AI, and machine learning as a result.
A shining example of this phenomenon is Stitch Fix. The company combines personal preferences with data analytics to offer custom clothing choices. And, as advanced technologies shape the future of retail, personalization will only become more profound.
#3
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Immersive AR & VR ExperiencesAugmented and virtual reality are revolutionizing customer-product interactions. These tools can facilitate an interactive marketplace experience. It gives shoppers the ability to showcase products in a dynamic, interactive way.
The IKEA Place app, for instance, allows users to virtually place furniture in their homes. Research suggests that the AR and VR retail sectors will experience substantial growth, potentially reaching billions by 2030.
#4
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SustainabilityCustomers want sustainable products, and are often willing to pay more to get them. Beyond tech trends, sustainability is gaining traction. This trend is not limited to a question of online shopping vs in-store shopping; simply ditching single-use plastic bags in store will not cut it.
Driven by consumer demands for eco-friendly practices, brands like Patagonia are pioneering sustainable materials and fair trade practices. And, with rising inflation, the second-hand retail market is also gaining momentum. Many brands are starting to promote a “circular economy” as a more sustainable solution for the market.
#5
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mCommerce, In-Store & OutBy 2024, mobile commerce could account for over 40% of eCommerce sales. The increase in app usage, especially among Millennials and Gen Z, hints at a future where smartphones dominate the shopping experience. And, with the rise of mobile wallets like Google Pay and Apple Pay, tech giants are positioning themselves as key players in the evolving payments landscape.
Brands must evolve; not just to thrive, but simply to survive. Retailers prioritizing innovation, sustainability, and genuine customer engagement will undoubtedly lead the charge in this exciting new chapter of global commerce.
As more facets of eCommerce bleed into brick-and-mortar shopping, we’re going to see more problems endemic to the online market move into physical retail, too. Notably, an uptick in fraud and chargebacks.
Threats like phishing, account takeovers, and the use of stolen card details are all common problems in the CNP space. This is in addition to existing threats to physical retail, like skimming devices, fake credit cards, and return fraud.
When it comes to chargebacks, no retailer is safe. Chargebacks can stem from genuine misunderstandings or dissatisfaction, miscommunication, or even deliberate first-party misuse. A “one-size-fits-all” solution will not address all these threats effectively. Only a layered approach will ensure that, even if one line of defense is breached, others are in place to counter the threat.
Have additional questions about online shopping vs in-store shopping? Want to learn more about building a better strategy to contend with fraud and chargebacks? Continue below to speak with one of our dispute management experts.
Around 76% of US adults shop online. At the same time, 46% of shoppers say they still prefer to shop in-store.
Both online and in-store channels have their advantages. Online shopping offers unparalleled convenience and a vast product selection, often at competitive prices. In contrast, in-store shopping provides tactile experiences and immediate possession of items. Ultimately, the "better" option depends on individual preferences and priorities.
Online shopping consists of browsing for and making purchases online with a credit or debit card. In contrast, in-store shoppers frequent brick-and-mortar stores where they present physical payment methods to make purchases.
It’s a mixed bag. Around 76% of US adults shop online. At the same time, 46% of shoppers say they still prefer to shop in-store.
Online shopping can lead to unexpected shipping costs, lacks the tactile experience of seeing and feeling products, and may involve complicated return processes.
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