The North America e-commerce retail market is anticipated to grow at a significant CAGR of 11.7% during the forecast period. Major factors contributing to the growth of the e-commerce retail market include improved infrastructure in major countries, an inclination towards online payment, and significant internet usage within the region. The major countries in North America have quality infrastructure which allows e-commerce companies to serve vast markets covering urban and rural populations. The majority of the population prefers online modes of payment due to the wide penetration of internet and smartphone users. Prepayment, cash on delivery, and other modes of payment allow e-commerce companies in the region to work smoothly and focus on the core business. 

Impact of COVID-19 Pandemic on North America E-Commerce Retail Market

The COVID-19 pandemic had disturbed the normal functioning of every industry and sector. Travel, tourism, finance, construction- every aspect of the North American economy got disrupted by COVID-19. However, the increased culture of home isolation and work from home had made people rapidly shift towards e-commerce platforms for their regular needs. Food, grocery, health, beauty, hygiene, and medical items are among the top product categories which had recorded the highest sales. Amazon was the leading destination for online shoppers during lockdown while Walmart stood in the second position. The work-from-home culture requires lots of technological access which had increased the sales of electronic products as well. Medicines are also now available on online platforms through which people are ordering them from the comfort of their homes. 

Segmental Outlook 

The North America e-commerce retail market is segmented based on the product type and end-user. Based on the product type, the market is segmented into electronics, grocery, fashion, home décor, healthcare, automobile, sports, beauty and personal care, kitchenware, and others. Based on the end-user, the market is sub-segmented into business to business, business to customer, and customer to customer. The above-mentioned segments can be customized as per the requirements. Based on product type, essential grocery and healthcare products are anticipated to hold a prominent share in the market as compared to others while based on end-user, business to the customer is anticipated to grow significantly during the forecast period. 

North America E-commerce Retail Market Share by Product Type, 2021 (%)

Essential Grocery and Healthcare Products to Hold a Prominent North American E-Commerce Retail Market

In the wake of the COVID-19 pandemic, people are doing panic purchases and stocking essential grocery products in bulk which is increasing the market share of groceries as compared with other products. Additionally, medicines and medical equipment in the healthcare market are getting huge sales from e-commerce websites as the products are disappearing from local markets due to huge demand. Fashion and personal care products were doing extremely well before the outbreak of COVID-19, now the interest of people got reduced towards it as per capita income got reduced.

The work-from-home culture had boosted the demand for electronic products, specifically mobiles, and laptops. Even various companies are purchasing these electronic products for their employees so that they can work from home. Pet-related products are also now available on e-commerce platforms which is adding a new segment to the market, however its share is limited as there are very few people who keep pets with them. 

Most of the automobile sales come from customer to customer segment. Websites like Cars.com provide complete assistance to buyers to check the quality of products and other legal documentation. Additionally, it provides fair pricing for each product according to its model and usability.

Regional Outlooks

The North America e-commerce retail market is further segmented based on geography including the US, Canada, and the rest of North America. The market can be analyzed for a particular country level as per the requirement.

The US Prominently Contributes to the North American E-commerce Retail Market

The North America E-commerce Retail market is further segmented based on geography including the US, Canada, Mexico, and rest of the North America. The US contributes the highest to the growth of the e-commerce retail market and also creates significant opportunities for e-commerce retail market players followed by Mexico. The US has a significant infrastructure coupled with rising smartphone users and increasing online stores and other online shopping destinations. The US and Canada provide opportunities to e-commerce retail companies for growth and expansion. Canadian e-commerce retail market is the second-largest market in the region with well-developed infrastructure and road connectivity.

Market Players Outlook

The major companies serving the North America e-commerce retail market include Apple Inc., Amazon.com Inc., Home Depot Product Authority Inc., Target Corp., Wal-Mart Stores Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. These market players are focused on providing more payment options such as PayPal, Alipay, Debit cards, Credit cards, and so on, still, payment through credit cards was the most preferred method during the COVID-19 lockdown. FedEx and DHL are the major shipping service provider to these market players.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the North America e-commerce retail market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.