United States (U.S.) E-commerce Strategic Outlook - 2024

The US e-commerce market is poised for significant growth, with revenue expected to reach $1.22 trillion in 2024 and scale up to $1.86 trillion by 2029 at a CAGR of 10.35%. This trajectory highlights strong momentum, driven by shifts in consumer behavior, technological advancements, and the dominance of key platforms like Amazon. Despite Amazon’s current 30% market share, fragmentation persists, with "Other" brands accounting for 35%, creating opportunities for smaller players to capture niche markets​.

Among growth categories, Food and DIY & Hardware stand out as frontrunners. The Food sector is projected to achieve a 14.6% CAGR, reaching $389 billion by 2029, reflecting increased online grocery adoption and convenience-driven habits. Meanwhile, DIY & Hardware will benefit from ongoing home improvement trends, climbing to $353.7 billion in revenue by 2029​. Recommerce, particularly in Fashion and Electronics, is emerging as a sustainability-driven opportunity. By 2029, Recommerce Fashion is expected to reach $83.5 billion, while Electronics will follow at $48.4 billion, signaling consumers’ growing acceptance of secondhand goods​.

The rise of Social Commerce further transforms the landscape, growing from a mere 2.8% in 2018 to an anticipated 8% by 2029. Platforms like Meta Facebook and Instagram lead revenue generation, with Facebook projected to generate $31.6 billion in 2024 alone, followed by Instagram at $18.3 billion. Emerging platforms, such as TikTok and YouTube are steadily gaining traction, offering new avenues for growth​.

User adoption continues to accelerate, with total e-commerce users expected to surpass 333.5 million by 2029. The rapid expansion of mobile commerce will drive this growth, as 63% of online transactions are projected to occur via mobile devices by 2028​. In parallel, average revenue per user (ARPU) highlights the premium opportunities in Live Commerce, particularly within Food, where ARPU is set to reach $276.4 by 2029​.

Leaders in the e-commerce space must prioritize investments in high-growth categories like Food and DIY while exploring the vast potential of Recommerce to align with sustainability trends. Leveraging platforms such as Facebook and Instagram for Social Commerce, while preparing for the growth of TikTok and YouTube, will ensure a robust omnichannel strategy. Finally, a focus on mobile-first solutions, personalized experiences, and seamless integration between online and offline channels will be critical to capturing market share and driving sustainable growth.

1. US Ecommerce
Strategic Outlook &
Forecast 2024
Collected & presented by Perry Cao – Digital & E-commerce Strategy Manager (US Market)

2. Executive Summary
▪Revenue in the eCommerce Market is projected to reach US$1,223.00bn in 2024.
▪Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.99%, resulting in a projected market volume of
US$1,881.00bn by 2029.
▪With a projected market volume of US$1,469.00bn in 2024, most revenue is generated in China.
▪In the eCommerce Market, the number of users is expected to amount to 333.5m users by 2029.
▪User penetration will be 84.5% in 2024 and is expected to hit 97.1% by 2029.
▪The average revenue per user (ARPU) is expected to amount to US$4.47k.
▪According to e-Marketer, US retail e-commerce sales are projected to grow from $1.013 trillion in 2022 to $1.676 trillion in 2028. This
reflects a compound annual growth rate (CAGR) of approximately 8-9%.
▪Increasing Share of Total Retail Sales. E-commerce’s share of total retail sales will rise from 14.4% in 2022 to 20.0% in 2028, indicating its
growing dominance in the retail sector.
▪Growth Rate Stabilization. Annual growth rates remain consistent, averaging 8-9%, with a slight dip to 8.5% in 2028. This reflects a
maturing e-commerce market with stable, sustainable growth.
▪E-commerce will account for one-fifth of total retail sales by 2028, marking a significant shift in consumer purchasing habits. Retailers
must prioritize digital transformation and online channel optimization to capture this growth.
▪The US e-commerce market is poised for robust growth, driven by technological innovation, increasing adoption of digital payment
solutions like BNPL, and rising online consumer demand for convenience and variety.
▪Market Size and Growth: The US e-commerce market is projected to grow from USD 1.19 trillion in 2024 to USD 1.86 trillion by 2029, with
a CAGR of 10.35%.
▪Key Drivers of Growth: Increasing online shoppers driven by internet penetration; Rising demand for beauty and fashion products online;
Growth in mobile adoption and social media usage as purchasing channels; Expanding use of digital payments driven by technological
advancements and changing consumer preferences.
▪Technological Innovations: The adoption of AI and machine learning (ML) is transforming the market. Example: Brooks Brothers’
collaboration with Metrical (November 2023) to predict shopper behavior using AI/ML, emphasizing consumer privacy without using
personal data (PII).
▪Emerging Payment Trends: Increasing adoption of Buy Now, Pay Later (BNPL) options. BNPL plans are the 2nd most utilized credit option
in the US, with an adoption rate of nearly 25% (NerdWallet, 2024).
▪Market Opportunities: Presence of leading e-commerce players offering diverse product categories. Technological advancements in
payment gateways will enhance convenience and accessibility for consumers.

3. Revenue

9. Section Summary
Steady Growth:
▪The US e-commerce market is projected to
grow from USD 1.19 trillion in 2024 to USD 1.86
trillion in 2029, with a CAGR of 10.35%.
▪Both Statista and eMarketer data align closely,
predicting a market size of USD 1.88 trillion by
2029.
Retail E-commerce Sales:
Retail e-commerce sales will grow from $1.199
trillion in 2024 to $1.676 trillion in 2028,
representing 20% of total retail sales.
Category Highlights:
▪DIY & Hardware Store remains the leading
category, with revenue projected to hit USD
353.7 billion by 2029.
▪Food shows robust growth, increasing from USD
195.3 billion in 2024 to USD 389 billion in 2029.
▪Fashion is a consistent high-performing
category, expected to reach USD 298.4 billion
by 2029.
Top Gainers (2024-2029):
▪Food: CAGR of 14.6%.
▪Tobacco Products: Fast growth from USD 31.5
billion (2024) to USD 61.49 billion (2029).
Slow Growth:
▪Electronics shows stagnation with slow growth
from USD 94.93 billion in 2024 to USD 116.6
billion in 2029.
Revenue Trends:
▪The overall market is driven by increasing digital
penetration, strong performance in food, DIY
hardware, and tobacco categories.
Evolving Behaviors:
▪Pandemic-driven trends (e.g., online groceries
and home improvement purchases) continue to
dominate.
E-commerce Retail Penetration:
▪Retail e-commerce will account for 20% of total
retail sales by 2028, highlighting increased
digital adoption in consumer purchasing.
1.Invest in High-Growth Categories: Prioritize
campaigns and partnerships in Food, DIY &
Hardware, and Tobacco Products sectors to
leverage their strong CAGR.
2.Leverage Online Groceries: With Food's steady
growth, optimize strategies around online
grocery platforms and logistics.
3.Innovate Electronics Strategy: Focus on value-
added services like extended warranties,
subscriptions, and personalized offerings to
reignite growth.
4.Capture Market Share: Promote bundled
offerings and discounts for categories showing
higher ARPU growth, like DIY & Hardware and
Food.
1.2024 Revenue: USD 1.22 trillion.
2.2029 Revenue: USD 1.86 trillion (Statista) and
USD 1.88 trillion (eMarketer).
3.Top Categories by 2029:
▪DIY & Hardware Store: USD 353.7B
▪Food: USD 389B
▪Fashion: USD 298.4B
4.Emerging Categories:
▪Tobacco Products and OTC
Pharmaceuticals demonstrate
promising upward trends.
Key Insights Strategic Observations Forecast Highlights Recommendations

10. Distributions

14. Section Summary
Brand Shares (2023)
▪Amazon dominates the market with 30.0% share,
cementing its leadership in the e-commerce
ecosystem.
▪"Other" Brands hold the largest cumulative share at
35.0%, signaling a fragmented market outside of
major players.
▪Home Depot and Lowe’s each hold 7.0%, driven by
the DIY & Hardware segment's strong performance.
▪Smaller players like Walmart (4.0%), Costco (3.0%),
and niche retailers such as Nike, Temu, and Ace
Hardware (1.0% each) highlight specific consumer
preferences.
Online vs. Offline Split
1.Online Sales are on a steady upward trajectory:
▪Online sales are expected to increase
from 17.7% in 2017 to 43.6% by 2029.
▪Offline retail will decline proportionally
from 82.3% (2017) to 56.4% (2029).
2.The shift is driven by convenience, improved
logistics, and increasing mobile and desktop
penetration.
Mobile vs. Desktop Split
1.Mobile dominance continues to grow:
▪Mobile's share rises from 35.8% in 2017
to 63.0% in 2028, overtaking desktop
channels.
▪Desktop's share decreases from 64.2% to
37.0% in the same period.
2.Key Transition Year: By 2022, mobile surpassed
desktop at 50.6%, reflecting changing shopping
behaviors and device usage.
Amazon's Dominance:
▪Amazon continues to strengthen its e-commerce
footprint, leveraging its vast logistics network,
Prime memberships, and marketplace features.
Fragmented Market ("Other"):
▪The 35% share of smaller brands indicates ample
opportunities for niche players to disrupt the
market with specialized offerings.
Growth in DIY and Home Improvement:
▪Home Depot and Lowe’s (7% each) benefit from
increased consumer spending on DIY projects,
aligned with the performance of the DIY &
Hardware Store category.
Channel Shift:
▪The continued growth of online retail highlights
the critical importance of omnichannel strategies
for traditional retailers.
▪Investments in digital storefronts, seamless
delivery options, and customer support will be
essential to compete.
Mobile-First Future:
▪The growing dominance of mobile shopping
underscores the need for mobile-optimized
websites and apps.
▪Key considerations include enhancing mobile UX,
leveraging mobile-exclusive promotions, and
integrating digital payment solutions like Apple
Pay, Google Pay, and BNPL (Buy Now Pay Later).
Support Smaller Brands:
▪Partner with niche and regional players (35%
market) for co-branded campaigns or exclusive
product offerings.
Strengthen Mobile Strategy:
▪Prioritize mobile-first design, faster load times,
and personalized app-based experiences to
engage shoppers.
Capitalize on DIY Growth:
▪Collaborate with home improvement giants like
Home Depot and Lowe’s to increase visibility in
high-growth categories.
Enhance Omnichannel Experience:
▪Integrate online and offline channels to deliver
seamless experiences (e.g., in-store pickups,
virtual shopping tools).
2029 Projections:
1.Online Sales: 43.6% of total retail sales.
2.Mobile Sales: 63.0% of online transactions.
Amazon's Continued Leadership: Amazon's
innovation and scale will likely secure its 30%+
market share through 2029.
Home Improvement Sector: Brands like Home
Depot and Lowe’s will maintain steady growth,
supported by rising DIY consumer demand and
housing investments.
Key Insights Strategic Observations Forecast Highlights Recommendations

15. Users | Shoppers

19. Section Summary
Top Categories by Users
▪Electronics leads with 233.4M users (72.1%
penetration). High demand driven by digital
adoption, upgrades, and smart devices.
▪Fashion ranks second with 216.0M users (66.8%
penetration). Influenced by mobile shopping,
personalized recommendations, and social
commerce.
▪Media stands third with 165.5M users (51.2%
penetration). Streaming services and digital
subscriptions are significant drivers.
•High-Income Group: Largest contributor at
37.4%, reflecting higher purchasing power and
adoption of premium categories.
•Medium-Income Group: Accounts for 33.3%,
indicating substantial opportunity for mass-
market e-commerce solutions.
•Low-Income Group: 29.3%, signaling untapped
potential for affordable and value-driven
products.
Dominant Age Group:
▪45–54 years leads at 24.3%, reflecting higher
disposable income and strong digital habits.
▪35–44 years follows at 22.2%, signaling a key
demographic for targeted campaigns.
Young Shoppers:
▪18–24 years make up 15.9%, indicating
opportunities to engage with digital-first
campaigns and budget-friendly offerings.
▪55–64 years represent 18.4%, highlighting
growing comfort among older demographics with
online shopping.
Focus on Electronics and Fashion:
▪These categories lead user growth and
penetration rates. Strategies such as tailored
offerings, bundled products, and subscription
services will maximize retention.
Income-Tier Opportunities:
▪Develop segmented campaigns for high-income
consumers (premium products) and low-income
groups (value-driven pricing and promotions).
Targeting Younger Users:
▪Younger demographics (18–24) require
personalized, mobile-first shopping experiences,
leveraging influencers and social commerce.
Older Demographics:
▪Enhance user experience for 55–64 years with
intuitive platforms, trust-building mechanisms
(e.g., reviews), and customer support.
Electronics:
▪Capitalize on market maturity with upsell
opportunities in smart devices, bundled offers,
and extended warranties.
▪Focus on retention strategies for loyal buyers to
maintain market share.
Fashion:
▪Integrate virtual try-ons and enhance
personalization through AI to cater to increasing
online shoppers.
▪Expand reach through social commerce and
influencer collaborations.
Food and Media:
▪Food: Strengthen delivery infrastructure and
offer subscription-based grocery models.
▪Media: Develop family bundle plans and
localized content for underserved markets.
Emerging Categories (Eyewear, OTC
Pharmaceuticals):
▪Eyewear: Leverage AR/VR virtual tools for
product trials.
▪OTC Pharmaceuticals: Build trust through
educational campaigns and offer convenience-
driven subscriptions.
Lagging Categories:
▪DIY & Hardware: Promote DIY content and offer
online-exclusive tools.
▪Tobacco Products: Focus on premium offerings
and loyalty programs for niche customer
retention.
Emerging Trends:
1.Consistent Growth in Electronics:
▪Electronics shows a linear increase
from 124.1M (2017) to 309.1M
(2029).
▪By 2029, penetration is projected to
reach 90%, indicating market
maturity.
2.Fashion and Food Expansion:
▪Fashion continues steady growth,
increasing from 167.8M (2020) to
255.5M (2029), maintaining
relevance across demographics.
▪Food grows notably to 161.4M users
by 2029 with increased adoption of
online grocery and delivery
platforms.
3.Media Strength:
▪Media sees sustained demand,
growing to 195M users by 2029.
▪Digital subscriptions and on-
demand streaming are core drivers.
4.Eyewear and OTC Pharmaceuticals Gaining
Traction:
▪Eyewear rises from 42.1M (2022) to
72.1M (2024).
▪OTC Pharmaceuticals grows
steadily, fueled by health
consciousness and e-commerce
adoption.
5.Lagging Categories:
▪DIY & Hardware Store (49.7M users
in 2024, penetration: 15.4%) and
Tobacco Products remain niche
markets with limited growth.
Key Insights Strategic Observations Forecast Highlights Recommendations

20. ReCommerce

25. Section Summary
Revenue Trends:
▪Recommerce Electronics dominates the revenue,
growing from $5.4B in 2017 to a projected
$48.4B in 2029.
▪Recommerce Fashion leads with the highest
revenue growth, reaching $83.5B by 2029.
▪Recommerce Furniture and Toys & Hobby show
slower but consistent growth, reaching $12.1B
and $24.7B by 2029, respectively.
Revenue Change (%):
▪Fashion shows the steepest decline in annual
percentage change, from 69.8% in 2018 to 9.8%
in 2029, suggesting maturity.
▪Electronics growth moderates to 3.9% in 2024,
indicating stable, slower growth compared to
initial years.
Users and Penetration:
▪Recommerce Fashion leads in penetration and
user base, projected to hit 100.8M users
(30.15%) in 2029.
▪Electronics follows with 29.1M users and 8.7%
penetration, maintaining significant growth.
▪Furniture and Toys & Hobby have a smaller base
but show steady adoption, especially Toys &
Hobby at 8.1% penetration by 2029.
Average Revenue Per User (ARPU):
▪Electronics boasts the highest ARPU growth,
reaching $1.66K by 2029.
▪Fashion and Toys & Hobby remain consistent at
$0.83K and $0.58K, respectively.
Recommerce Fashion Dominance: Fashion leads in
both revenue and user growth, reflecting its strong
demand in resale markets. Revenue Grows from
$23.0B in 2022 to a projected $83.5B by 2029, with a
30.4% revenue growth rate in 2024.
Users: Fashion users increased from 51.1M in 2022
to 100.8M by 2029, maintaining 30.15% user
penetration.
Recommerce Electronics Strong ARPU:
▪Electronics showcases the highest ARPU growth,
proving its monetization potential.
▪ARPU: Grows steadily from $1.03K in 2017 to
$1.66K by 2029.
▪Users: Electronics users rose from 5.3M in 2017
to 29.1M by 2029, with 8.7% penetration.
▪Revenue: Revenue increases from $5.4B in 2017
to $48.4B in 2029, with a modest growth rate of
3.9% in 2024.
Slower Adoption in Furniture and Toys & Hobby:
▪Furniture. Revenue: Grows gradually from $2.5B
in 2020 to $12.1B by 2029. Users: Modest
increase from 17.4M in 2023 to 20.9M by 2029,
achieving 6.26% penetration.
▪Toys & Hobby: Revenue: Moves from $3.8B in
2021 to $24.7B in 2029, supported by a 6.9%
growth rate in 2024. Penetration: grows steadily
to 8.1% by 2029, indicating moderate user
adoption..
Invest in Fashion & Electronics:
▪Fashion: Enhance marketing strategies
highlighting sustainability and affordability to
maintain user growth.
▪Electronics: Focus on ARPU growth through
bundled offerings, extended warranties, and
certified refurbishments.
Toys & Hobby Expansion:
▪Leverage recommerce trends among younger
demographics through targeted marketing
campaigns on platforms like TikTok and
Instagram.
Furniture Growth Strategies:
▪Highlight savings and sustainability benefits for
bulkier items to increase adoption in key urban
markets.
Retention Initiatives:
▪For all categories, emphasize quality assurance,
user trust, and competitive pricing to maintain
user engagement as markets mature.
Revenue Diversification:
▪Explore subscription models and loyalty programs
for recommerce platforms to enhance long-term
user value and ARPU.
Revenue Outlook:
▪Fashion will continue leading, contributing over
40% of recommerce revenue by 2029.
▪Electronics will stabilize and become the second-
largest contributor with consistent ARPU growth.
User and Penetration Growth:
▪Fashion: 100.8M users (30.15% penetration).
▪Electronics: 29.1M users (8.7% penetration).
▪Furniture and Toys & Hobby will see marginal
user increases, focusing on niche adoption.
Revenue Change:
▪Slower annual growth is expected across all
categories post-2025 as recommerce markets
mature.
Key Insights Strategic Observations Forecast Highlights Recommendations

26. Social Commerce

30. Section Summary
Revenue Growth:
▪Social commerce revenue will grow from $13.86
billion in 2018 to $150.5 billion in 2029.
▪Peak growth rate was observed in 2022 at
62.1%, but growth rates are expected to
stabilize to 6.5% by 2029.
Share in Total E-commerce:
▪Social commerce accounts for a growing share,
rising from 2.8% in 2018 to 8.0% by 2029.
▪Non-social commerce dominates but shows a
slow decline, dropping from 97.2% in 2018 to
92.0% in 2029.
▪Revenue per Social Media Platform: Facebook
leads the market with projected revenue of
$31.6 billion in 2024, growing to $52.5 billion in
2029.
▪Instagram follows with $18.3 billion in 2024
and is forecasted to reach $30.5 billion by 2029.
▪Emerging platforms like TikTok and YouTube
will grow steadily but remain under $12 billion
by 2029.
User Penetration:
▪Total social commerce users are expected to
rise from 36 million in 2018 to 137.7 million in
2029.
▪User penetration will grow from 12% in 2018 to
41.21% by 2029, indicating a steady increase in
adoption.
Platform Dominance:
▪Facebook remains the largest driver of social
commerce revenue due to its established
marketplace and advertising infrastructure.
▪Instagram follows as it integrates shopping
features with visually engaging content to
attract millennial and Gen Z shoppers.
▪TikTok and YouTube show growth potential but
lag due to nascent monetization strategies.
Revenue Stabilization:
▪While growth rates peaked in 2022, the decline
to 6.5% in 2029 signals a maturing market.
▪The revenue shift indicates saturation among
early adopters and highlights the need for
innovation to drive further growth.
User Adoption:
▪Growing user base and rising penetration
highlight increasing consumer trust in
purchasing through social platforms.
▪By 2029, 41.2% of total e-commerce users will
engage in social commerce, indicating
mainstream acceptance.
Platform-Specific Strategies:
▪Prioritize Facebook and Instagram for
campaigns targeting established shoppers with
high purchasing intent.
▪Invest in emerging platforms like TikTok for
younger demographics and YouTube for longer-
form product marketing.
Innovate on Engagement:
▪Introduce AR/VR shopping experiences to
improve product visualization on platforms like
Instagram.
▪Leverage live commerce on TikTok to create
urgency and drive impulse purchases.
Enhance Trust & Conversion:
▪Focus on transparent user reviews, influencer
partnerships, and secure payment methods to
reduce purchase friction.
Adoption Strategies:
▪Target untapped segments (e.g., older
demographics) to sustain user penetration
growth.
▪Offer platform-exclusive promotions to
encourage trial and loyalty.
Revenue:
▪Social commerce revenue will surpass $100
billion by 2026, reaching $150.5 billion by
2029.
Revenue Share:
▪Social commerce’s share of total e-commerce
will increase to 8% by 2029, signaling
incremental but sustained growth.
Top Platforms:
▪Facebook and Instagram will dominate through
2029, while emerging platforms like TikTok and
YouTube grow their influence, albeit slower.
Key Insights Strategic Observations Forecast Highlights Recommendations

31. Live Commerce

34. Section Summary
Revenue Trends (2019–2029):
▪Live Commerce Electronics leads revenue
growth, projected to hit $7.8B by 2029, a steady
rise from $0.5B in 2019.
▪Live Commerce Food demonstrates the fastest
early momentum, reaching $7.2B in 2029 with
sustained annual increases.
▪Beauty & Personal Care and Fashion lag slightly
but still show consistent growth to $5.4B and
$7.0B respectively by 2029.
Revenue Change (Growth Rate):
▪High early growth in 2020: Electronics (85.8%)
and Food (91.9%).
▪Growth plateaus after 2023 for all categories,
with Food maintaining a 31.8% change in 2024,
the highest across segments.
▪Post-2026: Growth stabilizes under 3%
annually, signaling market maturity.
User Trends (Penetration & Growth):
▪Fashion dominates in users, reaching 37.8M by
2029, followed by Food at 24.3M.
▪Electronics and Beauty & Personal Care
maintain steady but slower user base growth,
hitting 21.6M and 21.3M respectively.
ARPU (Average Revenue Per User):
▪Food ARPU outpaces others, growing to $276.4
by 2029 from $60.47 in 2019.
▪Electronics follows at $250.9, while Beauty &
Personal Care remains lower at $218.3.
Live Commerce Electronics:
▪Electronics has strong initial adoption due to
higher-value purchases and user familiarity
with e-commerce.
▪The growth plateaus post-2025, likely driven by
market saturation.
▪Focus on tech innovation and AI-assisted
product showcases to maintain momentum.
Live Commerce Food:
▪Fastest-growing category initially with 67.7%
YoY growth in 2023, driven by evolving food
delivery trends.
▪High ARPU indicates strong user engagement
and repeat purchases.
▪Strategically leverage personalized food streams
(e.g., live recipe demos, Q&A sessions with
chefs).
Fashion and Beauty & Personal Care:
▪Fashion leads in user penetration due to its
visual appeal and influencer-driven demand.
▪Beauty requires higher consumer confidence;
focus on virtual try-ons and detailed tutorials to
boost adoption.
Electronics:
▪Invest in AI-powered live demonstrations and
real-time expert Q&A.
▪Focus on tech enthusiasts with limited-edition
product drops and exclusives.
Food:
▪Leverage chef collaborations and live tutorials
to boost user engagement.
▪Integrate subscription models to build repeat
purchases.
Fashion:
▪Partner with influencers for interactive live
showcases (styling tips, live try-ons).
▪Optimize shopping cart experience to drive
conversions during streams.
Beauty & Personal Care:
▪Promote augmented reality (AR) features for
virtual try-ons during live streams.
▪Highlight limited-time bundles and giveaways to
encourage participation.
Revenue Forecast:
▪Live Commerce Electronics is projected to
generate around 5.3 billion dollars, marking a
steady increase of 22.1% year-over-year, driven
by high-value product categories like gadgets,
home appliances, and tech accessories.
▪Live Commerce Food will continue its rapid
growth, reaching approximately 5.3 billion
dollars, with a strong annual growth rate of
31.8%. This growth is supported by evolving
consumer habits, including increased demand
for fresh food delivery and live recipe sessions.
▪Live Commerce Fashion is expected to generate
4.3 billion dollars in revenue, reflecting a 21%
year-over-year growth. The visually engaging
nature of fashion combined with influencer-
driven showcases remains a strong growth
driver.
▪Live Commerce Beauty & Personal Care will
match Fashion at 4.3 billion dollars, growing at
a slightly higher rate of 25.2% compared to the
previous year. Live tutorials, skincare
consultations, and product demonstrations will
play a key role in this expansion.
Key Insights Strategic Observations Forecast Highlights Recommendations

35. Hardware & Home
Improvement
Sample Category

36. Hardware & Home Improvement includes 138 retailers (7.4%) of
the 1,856 that Digital Commerce 360 ranks, and they represented
5% to 6% of total U.S.-based Top 2000 e-commerce sales prior to
2022.
Since then, the category has grown to 6.4% of Top 2000 e-
commerce sales.
Hardware & Home Improvement has been one of the fastest-
growing categories post-pandemic and is one of two categories
with double-digit growth in both 2022 and 2023. Digital
Commerce 360 projects continued steady growth of 10.8% and
10.9% in 2024 and 2025, respectively, which would bring the
category to $86.53 billion by 2025, up from $70.44 billion in 2023.

37. Prior to the pandemic, retailers in Hardware & Home Improvement were growing
at an 18.0% CAGR between 2017 and 2019. The category had a 14.7% CAGR
between 2020 and 2022. In the years ahead, Digital Commerce 360 projects the
category will grow an average of 10.8% annually from 2022 to 2025. That would
make it the second-fastest growing category in e-commerce, next to Automotive
Parts & Accessories with a 10.9% CAGR. The pandemic produced a boom for
online merchants in the Hardware & Home Improvement category, which saw a
collective 54.2% growth in 2020. Unlike many categories, however, by 2022,
Hardware & Home Improvement online retailers grew nearly twice as fast as all
U.S.-based Top 2000 retailers' e-commerce with 10.0% growth in sales.
It's no coincidence that one of the fastest-growing categories in e-commerce holds
some of the largest online retailers in U.S. e-commerce, with three of the top 12
retailers in Digital Commerce 360's rankings:
Home Depot, Grainger, and Lowe's. Home Depot is larger than both Grainger and
Lowe's combined in online sales, and the gap between Lowe's and Ferguson is
over $8 billion in online sales. The top four Hardware & Home Improvement
merchants are all public companies, while Northern Tool & Equipment is privately
held. The expected double-digit growth within this category will be driven by the
leaders, but none has grown faster over the last five years than Polished (71.1%
CAGR), Floor & Décor Outlets of America Inc. (51.1% CAGR) and Tractor Supply Co.
(50.5% CAGR).

38. The 138 online retailers in Hardware & Home Improvement
hold the fourth most traffic of the 14 categories with 6.1% of
all 1,856 American retailers' traffic. Prior to the pandemic, the
category received only 3.3% of the traffic share.
That marks the second-fastest growth regarding online traffic
share percentage.
Hardware & Home Improvement shoppers are the oldest of
any category, with 46.2% of shoppers over 45 years old and
58.5% of them male.
Key takeaway: Hardware & Home Improvement consumers are
mostly men over the age of 45.

39. ENJOY THE READ,
HOPE IT HELPS.
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