In 2023, e-commerce comprised over 15.6 percent of total retail sales in the United States. Forecasts suggest that this proportion will continue to rise steadily in the coming years, reaching approximately 20.6 percent by 2027. Fashion fever The digital revolution has significantly changed how retail is done, impacting a wide range of product categories. Out of all e-commerce product categories, apparel and accessories are the most purchased online in the United States. As of February 2023, roughly 18 percent of all fashion retail sales took place online. Furniture and home furnishing, as well as computer and consumer electronics, ranked second, with over 15 percent of each product category purchased via the internet. The product categories that are least purchased online are office equipment and supplies (1.4 percent) and books, music, and video (5.1 percent). Shopping hotspots Amazon dominates the e-commerce industry in the United States, though other competitors still have significant market share. In December 2023, amazon.com was the most-visited e-commerce and shopping site in the United States. That month, around 45 percent of all visits to e-commerce sites were made to Amazon. Other popular shopping sites include ebay.com, walmart.com, etsy.com, and target.com. The staggering proportion of online retail sales in the country attributed to Amazon is quite remarkable. In 2023, Amazon's website accounted for almost half of all online computer and consumer electronics sales. Similarly, nearly one-third of online fashion purchases in the country were made on Amazon.

In the fourth quarter 2024, the share of e-commerce in total U.S. retail sales stood at 16.4 percent, up from the previous quarter. From October to December 2024, retail e-commerce sales in the United States hit over 309 billion U.S. dollars, the highest quarterly revenue in history. How e-commerce measures up in total U.S. retail In 2023, the reported total value of retail e-commerce sales in the United States amounted to over one trillion U.S. dollars—impressive, but the figure pales compared to the total annual retail trade value of seven trillion U.S. dollars. E-commerce still accounts for a mere 15.4 percent of total retail sales in the United States. Rising e-commerce segments Online shopping is popular among all age groups, though digital purchases are most common among Millennial internet users. In 2022, around 55 percent of Millennials purchased items via the internet. Mobile commerce is also growing in popularity, as consumers increasingly rely on their smartphones and mobile apps for shopping activities. In the fourth quarter of 2022, m-commerce spending made up 38 percent of the overall online spending in the United States.

This timeline shows the customer satisfaction with e-retail over the years, as measured in the American Customer Satisfaction Index (ACSI) score. In 2024, customer satisfaction with electronic retail reached 80 points out of 100. A bustling e-commerce market With one of the largest economies globally, it is no surprise that the United States also is a leading market for e-commerce on the global scale. In 2023, the U.S. Census Bureau reported retail e-commerce sales reaching an estimated 275 million U.S. dollars, nearly doubling since 2019. This high number of sales is made possible by the 273 million e-commerce users in the country – over 80 percent of the population. U.S. online fashion shopping Of the most popular categories to buy online, apparel and accessories is by far the most popular. In 2024, apparel, footwear and accessories made up 20.2 percent of the country’s total retail e-commerce sales. In the same year, the category was forecast to generate a total 145 billion U.S. dollars in overall revenue.

Online shopping has become a way of life. Once considered a novelty, much like the internet itself, the online shopping phenomenon has surpassed business and consumer expectations. It has evolved and expanded rapidly, with escalating internet and broadband uptake and changing consumer attitudes helping online shopping become a mainstream retail avenue. Greater investment in online platforms to advance website navigation, enhance security and improve delivery is fuelling a shift in consumer buying habits towards online shopping. The pandemic brought retail trading in Australia to a standstill, with lockdown periods and restrictions leading to a surge in online shopping sales. As consumers jumped online at breakneck speed, the online market was flooded with new entrants and businesses ramped up their digital sales capabilities to keep up with demand. Despite the hype and surge in sales, challenging trading conditions in the post-pandemic environment have eroded some of the earlier gains. Strong inflation and rising interest rates have combined to create a cost-of-living crisis, with consumers reassessing their online spending habits in the face of tightening purse strings. Nonetheless, revenue is anticipated to have grown at an annualised 7.4% over the five years through 2024-25 and is expected to total $58.0 billion in the current year, when revenue is set to climb by an estimated 5.2%. Going forwards, online shopping revenue is forecast to climb at an annualised 6.5% through the end of 2029-30 to total a projected $79.4 billion, aided by continued consumer demand. Greater digital connectivity will allow consumers to shop anywhere and anytime, with advances in augmented reality opening new doors for online retailers. Strong revenue prospects will entice more bricks-and-mortar retailers to launch online stores to complement their physical store network, while many online retailers will open shopfronts and flagship stores, blurring the lines between the two. Escalating competition, particularly from international low-cost retailers like Temu and Shein, will limit growth in profitability.

The Online Shopping industry in China is expected to grow at a CAGR of 17.8% over the past five years through 2025. This trend includes anticipated growth of 15.4% in the current year. The industry's rapid growth can be attributed to the rising popularity of ecommerce in China and online businesses continuously developing their services. Additionally, the number of mobile internet users has greatly increased over the past five years, as mobile internet services have continued to develop, boosting the industry's performance.Most products are sold at lower prices in online shops than in brick-and-mortar stores. As a result, more individuals have turned to online shopping to meet many of their everyday needs. The convenience of online shopping, which includes no location limitations, instantaneous services and improving logistics, has also led many consumers to forgo shopping in traditional bricks-and-mortar stores. Furthermore, constantly improving living standards and increasing disposable incomes have increased internet access across the population.The industry is forecast to continue expanding and will account for a greater proportion of total retail sales over the next five years. According to the National Bureau of Statistics, China had over 1.1 billion internet users as of December 2024, representing approximately 78.7% of the population. As industry services improve and more individuals connect to the internet, the industry is projected to record stable growth over the next five years. Overall, industry revenue is forecast to grow at a CAGR of 12.9% over the next five years through 2030.

The American Customer Satisfaction Index (ACSI) score of the e-commerce website of Amazon.com has fluctuated since 2000. In 2024, the customer satisfaction score of the online retailer was 83 out of 100 ASCI points. Popularity contest Amazon is one of the most popular marketplaces worldwide. In April 2023, the U.S. domain for Amazon ranked the most visited e-commerce and shopping website by share of online visits, with around 13 percent. Ebay came in second with roughly three percent of the visit share, and the Japanese site amazon.co.jp came in third with 2.66 percent. In the same month, global online shoppers visited amazon.com around 2.2 billion times. Why Amazon? Amazon.com is the most used e-commerce website in the world, and in the U.S., the website is far ahead of its competitors. With a significant difference in website visitors of almost 45 percent, ebay.com is second to amazon.com. Furthermore, the retail giant Walmart trails behind with an online visit share of roughly six percent. Amazon is used for various reasons by its customers. For example, the online marketplace is ranked as the leading platform for product research in the U.S., surpassing even search engines in popularity. Low shipping costs, fast deliveries, and affordable product prices are the main reasons for shopping on Amazon.

The Online Shopping industry has experienced growth, driven by rising internet penetration, higher discretionary incomes and evolving consumer preferences. More consumers, especially those aged 35 to 54, are shopping online, expanding online retailers' customer base. The increasing adoption of mobile commerce has also fuelled growth, with 80.0% of online shoppers using mobile devices to browse and purchase. Fashion has been a standout product segment, benefiting from climbing incomes and strong social media influence. Meanwhile, artificial intelligence (AI) and automation have enhanced the online shopping experience through personalised recommendations, chatbots and streamlined logistics that support online retailers' profit gain. The decline of department stores has accelerated as consumers favour online retailers for their convenience, competitive pricing and variety. Sustainability has also emerged as a key trend, with eco-conscious consumers driving demand for ethically sourced products, sustainable packaging and resale platforms. These shifts have reinforced the industry's growth despite rising operational costs and supply chain disruptions. Industry revenue is anticipated to climb at an annualised rate of 0.6% over the five years through 2024-25, reaching $6.8 billion. This projection includes an estimated revenue boost of 7.7% in 2024-25. The Online Shopping industry is poised for continued expansion, supported by increasing consumer confidence, ongoing technological advancements and the growth of innovative retail models. As consumer sentiment improves, shoppers are set to spend more on discretionary purchases, boosting sales across non-essential categories like fashion, beauty and electronics. Subscription services, social commerce and personalised shopping experiences will also enhance customer engagement and drive long-term growth. The online fashion segment will thrive as personalised beauty products and influencer-driven marketing become more popular. Also, the industry is set to attract new online sellers and generate more employment opportunities, fuelled by the success of digital retail platforms. However, challenges like fluctuating currency values, rising international shipping costs and intensifying competition may influence revenue. Sustainability will continue shaping consumer choices, with businesses investing in greener supply chains, ethical sourcing and circular economy initiatives to appeal to environmentally conscious shoppers. As the industry evolves, online retailers that leverage technology, innovation and consumer insights will be best positioned for sustained success. Overall, industry revenue is forecast to expand by 1.6% through 2029-30 to reach $7.4 billion.

This dataset provides insights into eCommerce shopping preferences and trends among UK adults in 2024. The findings are derived from data collected from a sample of 2,017 UK adults regarding their shopping habits and influencing factors.Furthermore, hundreds of thousands online searches were analysed to collate the most up-to-date statistics.

Most of the latest online purchases from abroad among U.S. shoppers were made in China, according to a 2023 survey. 53 percent of the e-commerce users surveyed in the United States had made their most recent purchase from there. The United Kingdom ranked second, with 10 percent. In turn, the U.S. was the main market where Canadian cross-border shoppers last bought online.

Understanding Consumer Intention in Online Shopping

Wiryanta Muljono1*, Sri Setiyawati2, and Sudarsana3

1 Ministry of Communication and Information Technology, Jakarta, 10110, Indonesia 2 Department of Management, Faculty of Economics and Business, Universitas Prof. Dr. Moestopo (Beragama), Jakarta, 12250, Indonesia 3 Department of Sociology, Faculty of Social and Political Sciences, Universitas Sebelas Maret, Surakarta, 57126, Indonesia

ABSTRACT
Service quality, shipping, and attitude have been considered a critical factor that affects intention consumers in online shopping. Moreover, we investigate whether service quality, shipping, and attitude simultaneously affect intention in online shopping. This survey was conducted by distributing questionnaires to 400 online shopping consumers. These empirical findings provide one, among several others, insight to startups in developing service quality and shipping. The authors proposed a service quality construct into the online shopping consumer behavior. However, they ultimately concluded that the employed service features produced a significant influence on the continuance intention of online shopping. The Startup company knew who its consumers can differentiate products and services which are offered by the company and others. The limitation of the present study originates from the research scope which revolves around consumer's perception of service quality and shipping on a startup company. The question remains if the startup's unresolved negative performance could overwrite the perceived value and make consumers disposed to reluctant to shop online Keywords: service quality, shipping, attitude, intention, consumers, online shopping

JEL Code: D13, I31, J22, K31

• Corresponding Author at Ministry of Communication and Information Technology, Jalan Merdeka Barat No. 9, Jakarta 10110, Indonesia.
  E-mail address: wiry002@kominfo.go.id or wiryantamuljono@gmail.com (author#1), srisetiyawati84@gmail.com (author#2), sudarsana099@gmail.com (author#3)

1. Introduction E-commerce in Indonesia has become increasingly important in all market segments. Indonesia’s 2020 e-commerce reach $40 billion. This year, Indonesia’s online retail was higher at $17 billion compared to 2019’s $23 billion, which followed suit. This indicates overall sales value to surpass estimate, driven by a new cohort of e-commerce users amid the Covid-19 pandemic. This condition is due to the increasing number of smartphone users in Indonesia, reaching 81.87 million users in 2020 (Muljono, et.al., 2021). Most retail goods traded via e-commerce are produced by small and medium enterprises (SMEs). Furthermore, the majority of businesses in Indonesia are SMEs, which represent 99% of the operating businesses (Das et al., 2018). The sharing economy model has predicted considerable growth in e-commerce. For example, GoJek in partnership with SMEs contributed a transaction volume of $ 1.2 billion in 2017 (Demographic Institute, 2018), which means that e-commerce in the SME sector is expected to grow considerably. The e-retail industry has been developing very rapidly and changing prior distribution systems. Hence, e-retail has higher opportunities to improve their performance if they have strong logistics capabilities (Cho et al, 2008), which has led to partnerships between startups that collect SME products to be marketed online and existing shipping services to deliver goods to consumers. As a consequence, service quality (SQ) and shipping have significantly influence attitude and intention of online shopping (IOS) and have emerged as a competitive advantage. The most favorite website to visit by Indonesian internet users are apparently online shopping sites, which are Shopee, Tokopedia, and Bukalapak (iPrice, 2020). This means that the service quality of online shopping sites is more innovative. This is also offset by courier services for shipping goods purchased online. Shipping services are required to implement and improve the service offered to fulfill various consumer needs and implement innovative solutions. It does not mean there are no gaps in online shopping. Previous research, like Dai et al. (2013), pointed out the shortcomings, that lack of access to sales associates on e-commerce is considered another restriction. Indeed, the critical aspect could have implications for declining consumer intentions of online shopping. Witnessing the strong growth of e-commerce, academics have directed increasing attention to e-commerce research because e-commerce provides diverse goods, methods of payment, and delivery for items purchased through delivery services, which has led to a number of challenges. E-commerce websites and the presence of the website-based app were initially thought to be the drivers of success, SQ issues to stand out. When consumers could not complete transactions, products were not delivered on time, the viability of e-commerce websites was jeopardized, with the chance to be abandoned by consumers (Parasuraman, et al., 2005). If e-commerce websites are to be accepted by consumers, start-up companies must shift the focus to e-service quality rather than an electronic transaction process. The phenomenon of e-service as a novelty of technology adoption is an interesting and challenging issue to be studied. Inconsistencies are observed between attitude and IOS models related to e-commerce (Li & Petrick, 2008) because each study is based on different objects and settings. This condition provides an opportunity to design alternative models that are able to describe the phenomenon to be observed. A model alternative is built based on four variables, namely, SQ, shipping, customer attitudes, and IOS, which can be explained by the previous factors. This research contributes to understanding SQ, shipping, and its attributes either directly or through attitudes towards IOS. To provide a clearer picture of the relationships among SQ, shipping, and attitude on the IOS.
2. Literature Review The relevant literature for this study is discussed in this section, based on literature reviews. There are two main areas of literature used in the paper. The first is related to attitude and IOS. Then, the SQ offered by e-commerce companies and the shipping options of goods purchased. 2.1. Service quality The SQ becomes the associate’s adequate activity for promoting to seek out and analyze data regarding consumer’s needs, wants, and perceptions relating to the product offered. SQ refers to providing service that meets or exceeds consumers’ expectations (Parasuraman et al., 2005). Indeed, this definition was most cited by the other researchers for outlining SQ. Today, consumers have high expectations for startup firms to offer them what they require, once they wish it. Obviously, digital remodel from conventional SQ to electronic SQ is more beneficial for consumers. Service quality is known as SERVQUAL, which contains five dimensions: reliability, responsiveness, assurance, empathy, and tangibles have used as a measurement (Parasuraman et al., 2005). Despite the universality of the five dimensions of SERVQUAL, they do not constitute all of the dimensions appropriate for measuring all aspects of a website due to the various characteristics and features of SQ on the website displayed. Culiberg (2010) argued that these five dimensions are industry-specific and cannot be applicable to any service industries without modifications. The findings of Buhmann & Brønn (2018), a behavioral intention prediction model show that SQ effectively influences consumer attitudes. However, these reported findings are not without conflicting results. A study on consumer behavior and service quality (Zhou et al., 2019) shows that consumers' perceptions of SQ can fluctuate due to the psychological influence of consumers. To apply the SQ framework to the current analysis, we have ensured that the choice of dimensions of the framework is compatible with the SQ on the website displayed. Previous studies like Eid (2011) have investigated the relationship between consumer loyalty and therefore the purchase of products in online shopping, with the treatment of 5 indicators, like website navigation, product information, product availability, timeliness of delivery, and simply return back. Later, Pearson et al. (2012) demonstrate that 2 key dimensions, particularly perceived SQ and perceived information quality of knowledge, each absolutely influences IOS. Perception of SQ and information quality are both closely related to reliability and responsiveness. Reliability is the ability to perform the services in a dependable, accurate, and totally accountable manner, without access failure (An & Noh 2009). Responsiveness is the willingness to respond quickly and in real-time to consumer requests (Zhou et al., 2019). Responsiveness involves a willingness to respond quickly, keeping consumers informed regarding the availability of goods, delivery services, way of payment, and a set price. Assurance involves the consumers’ trust in the website. Trust in the start-up website depends on the consumers' notion of security of however the website manages their personal information (Flavián & Guinalíu, 2006). Websites will increase the trust of the consumers by enhancing website system security (Eid, 2011). Privacy is the most serious issue is attracting a lot of online potential consumers and retains current consumers (Park & Kim, 2003). Empathy is outlined by creating a relationship between consumers and sellers via web platforms, smart communication, and understanding the wants of consumers. According to Lundstrom & Dixit (2008), tangibility is defined as the appearance of a website or application, the Android software package, straightforward and various options, and attention-grabbing content. For the needs of this study, SQ is measured by SERVQUAL modifications, particularly reliability,

According to a 2024 survey, Amazon was the most used website or app by online shoppers in the United States for shopping inspiration and researching products being considered for purchase. Over ** percent of respondents older than 35 years old used the platform for shopping inspiration, while more than ** percent of respondents in this age group used it for researching items considered for purchase. Channels like Walmart, Target and eBay also remain popular for both usages. However, search engines were also mentioned by respondents, particularly for researching potential products to be acquired. Notably, social media and video platforms were increasingly used by respondents aged from 18 to 34 years, with ** to ** percent of respondents in this age range using these platforms for both inspiration and consideration of purchases.

Market Size statistics on the Online Shopping industry in China

Sales in online clothing retail have increased by an average of 8.3% per year since 2019. Although consumer spending on clothing fell during the coronavirus pandemic, many people shifted their shopping online as a result of the restrictions and lockdowns, bringing additional growth to the industry. The increasing importance of e-commerce has benefited vertical providers in particular, who have expanded their offering to the internet, as well as large internet pure players such as Zalando. In this competitive environment, many fashion retailers have expanded their online sales activities. Almost half of them now have their own online shop. Sales fell slightly in 2022, which is partly due to a normalisation following the coronavirus pandemic. In addition, fragile supply chains, increased transport and energy costs and rising prices as a result of the war in Ukraine are also impacting online retail.In 2023 and 2024, online sales continued to normalise. In 2024, the online fashion market should continue to grow and is expected to reach 17.4 billion euros with a growth rate of 4.6% in the current year. Despite the general reluctance to spend, Asian online providers such as Temu and Shein in particular will be able to significantly increase their sales, which will increase competitive pressure. However, while only one in ten companies in the sector perceives a direct negative impact of Asian platforms on their business, around half of the companies are convinced that the lack of enforcement of EU law against providers from third countries is jeopardising their competitiveness.In the next five years, industry turnover is expected to grow by an average of 4.1% per year, reaching around 21 billion euros in 2029. This growth should particularly benefit those who are able to cope with the increased pressure to use ethically correct and environmentally friendly sources. The increasing cross-channel behaviour of consumers makes integrated online-offline concepts and a range of services on different channels necessary. The market is becoming increasingly concentrated, with the largest online shops and internet pure players likely to further expand their market shares. The shift in market share is primarily at the expense of smaller businesses.

Employment statistics on the Online Shopping industry in China

B2C E-commerce Market Outlook

As per our latest research, the global B2C E-commerce market size reached USD 6.5 trillion in 2024, reflecting a robust expansion driven by digital transformation and evolving consumer preferences. The market is forecasted to grow at a CAGR of 10.2% from 2025 to 2033, reaching a projected value of USD 15.6 trillion by 2033. This impressive growth trajectory is underpinned by increasing internet penetration, widespread adoption of smartphones, and the seamless integration of advanced payment solutions, all of which are fueling the rapid evolution of the B2C E-commerce landscape worldwide.

The primary growth factor propelling the B2C E-commerce market is the exponential rise in global internet users and the proliferation of mobile devices. As of 2024, over 5.3 billion individuals are connected to the internet, with a significant portion accessing E-commerce platforms through their smartphones. This widespread connectivity has transformed traditional shopping behaviors, making online marketplaces more accessible than ever before. Furthermore, the convenience of shopping from home, coupled with the availability of a vast range of products and competitive pricing, continues to attract new consumers to digital platforms. Retailers are also leveraging advanced analytics and personalized marketing strategies to enhance user experience and drive higher conversion rates, further boosting market growth.

Another significant driver is the ongoing digitalization of payment systems and the emergence of secure, user-friendly payment gateways. The rise of digital wallets, contactless payments, and seamless checkout experiences has mitigated many of the trust and security concerns that previously hindered online transactions. In addition, innovations such as buy-now-pay-later (BNPL), integrated loyalty programs, and instant refunds are enhancing consumer confidence and satisfaction. These advancements, combined with the increasing acceptance of cross-border transactions, are expanding the global reach of B2C E-commerce platforms, allowing retailers to tap into new and emerging markets with relative ease.

The COVID-19 pandemic has also played a pivotal role in accelerating the adoption of B2C E-commerce. During periods of lockdown and restricted movement, consumers turned to online channels for their essential and non-essential shopping needs. This shift in consumer behavior has persisted even as physical stores have reopened, with many shoppers now preferring the convenience and variety offered by E-commerce platforms. Retailers and brands have responded by investing heavily in their digital infrastructure, optimizing supply chain logistics, and enhancing last-mile delivery capabilities to meet the surging demand for online shopping. As a result, the B2C E-commerce market has not only expanded its customer base but also strengthened its position as a critical component of the global retail ecosystem.

From a regional perspective, Asia Pacific continues to dominate the global B2C E-commerce market, accounting for over 40% of total sales in 2024. This dominance is largely attributed to the massive consumer base in countries such as China and India, where rapid urbanization, rising disposable incomes, and government initiatives promoting digital commerce have created fertile ground for E-commerce growth. North America and Europe also represent significant markets, driven by high internet penetration rates, advanced logistics networks, and a mature digital payments infrastructure. Meanwhile, Latin America and the Middle East & Africa are emerging as promising regions, with increasing investments in digital infrastructure and a growing appetite for online shopping among younger demographics.

Product Category Analysis

The B2C E-commerce market is segmented by product category into Consumer Electronics, Fashion and Apparel, Home and Living, Health and Beauty, Books and Media, Groceries, and Others. Among these, Consumer Electronic

Market Size statistics on the Online Shopping industry in Australia

Online Grocery Market Outlook

According to our latest research, the global online grocery market size reached USD 420.6 billion in 2024, reflecting a robust expansion fueled by evolving consumer preferences and rapid digitalization. The market is projected to grow at a CAGR of 18.2% from 2025 to 2033, reaching a forecasted value of USD 1,921.8 billion by 2033. This remarkable growth is primarily attributed to increasing urbanization, widespread adoption of smartphones, and the growing demand for convenience in grocery shopping. The online grocery market continues to transform the retail grocery landscape, with innovative technologies and changing lifestyles driving widespread adoption across all demographics.

One of the most significant growth factors for the online grocery market is the increasing penetration of high-speed internet and smartphones globally. As more consumers gain access to reliable connectivity and user-friendly mobile applications, the barriers to online grocery shopping are rapidly diminishing. This digital transformation has enabled retailers to reach a broader customer base, offering seamless shopping experiences that were previously unattainable through traditional brick-and-mortar channels. Additionally, the integration of advanced technologies such as AI-driven recommendation engines, real-time inventory updates, and secure payment gateways has enhanced user engagement and trust, further propelling market growth.

The shift in consumer behavior toward convenience and time efficiency is another critical driver for the online grocery market. Modern consumers, particularly in urban environments, are increasingly seeking solutions that save time and reduce the hassle of in-store shopping. The ability to order groceries online and have them delivered directly to one’s doorstep, or to schedule a convenient click-and-collect pickup, has become a significant value proposition. This trend has been further accelerated by the COVID-19 pandemic, which heightened awareness of contactless shopping and health safety, leading to a surge in first-time online grocery shoppers and increased frequency of repeat purchases.

Strategic partnerships and investments by major retailers and technology companies are also catalyzing the expansion of the online grocery market. Established supermarket chains, e-commerce giants, and even startups are investing heavily in logistics infrastructure, last-mile delivery solutions, and digital marketing. These investments are not only improving service levels but are also enabling competitive pricing and a wider assortment of products. Moreover, the rise of subscription-based grocery delivery services and the integration of loyalty programs are fostering customer retention and increasing average order values, thereby contributing to sustained market growth.

Regionally, the online grocery market exhibits dynamic growth patterns, with Asia Pacific leading the charge due to its large population, rising disposable incomes, and rapid urbanization. North America and Europe are also witnessing substantial adoption, driven by tech-savvy consumers and high internet penetration rates. Emerging markets in Latin America and the Middle East & Africa are catching up, supported by investments in digital infrastructure and changing consumer lifestyles. Each region presents unique opportunities and challenges, influenced by local consumer preferences, regulatory environments, and logistical capabilities.

Product Type Analysis

The online grocery market, when segmented by product type, reveals significant variations in consumer preferences and purchase behaviors. Fresh produce has emerged as a high-growth segment, as consumers increasingly prioritize health and wellness in their dietary choices. Online platforms are responding by establishing partnerships with local farmers and suppliers, ensuring the availability of fresh fruits and vegetables with minimal delivery times. The integration of real-time inventory management and cold chain logistics has addressed traditional concerns rega

E-commerce Software Market Outlook

According to our latest research, the global E-commerce Software market size reached USD 8.9 billion in 2024, reflecting the robust digital transformation across retail and other industries. The market is projected to grow at a CAGR of 14.2% during the forecast period, reaching an estimated USD 25.1 billion by 2033. The primary growth factor driving this surge is the accelerated adoption of digital commerce platforms by businesses of all sizes, fueled by evolving consumer preferences and the need for seamless online shopping experiences.

One of the most significant growth drivers for the E-commerce Software market is the exponential rise in online retail activity worldwide. As consumer behavior shifts towards digital-first purchasing, retailers and brands are investing heavily in advanced e-commerce solutions to enhance customer engagement, streamline operations, and provide personalized shopping experiences. The proliferation of smartphones and high-speed internet connectivity has further enabled consumers to shop online with greater convenience, compelling businesses to adopt scalable and feature-rich e-commerce platforms. Additionally, the integration of artificial intelligence, machine learning, and data analytics into these platforms allows for smarter inventory management, targeted marketing, and dynamic pricing strategies, which collectively boost sales and customer satisfaction.

Another critical factor fueling the growth of the E-commerce Software market is the increasing demand for omnichannel commerce solutions. Modern consumers expect a seamless shopping journey across multiple touchpoints, including web, mobile, social media, and physical stores. E-commerce software providers are responding by developing solutions that unify inventory, order management, and customer data, enabling businesses to deliver consistent experiences regardless of the channel. This trend is particularly prominent among large enterprises and established retailers seeking to maintain competitiveness in a rapidly evolving digital landscape. Furthermore, the COVID-19 pandemic has accelerated digital adoption, with many small and medium enterprises (SMEs) embracing e-commerce platforms to survive and thrive amid shifting market dynamics.

The evolution of payment technologies and logistics infrastructure is also playing a pivotal role in expanding the E-commerce Software market. Secure and flexible payment processing solutions, coupled with advanced order fulfillment and last-mile delivery capabilities, are critical components of modern e-commerce ecosystems. Vendors are increasingly offering integrated solutions that address these needs, helping businesses reduce cart abandonment rates and improve customer loyalty. Moreover, regulatory advancements and supportive government initiatives aimed at promoting digital commerce are further catalyzing market growth, especially in emerging economies where e-commerce penetration is still on the rise.

Regionally, Asia Pacific is emerging as the fastest-growing market for E-commerce Software, driven by the rapid expansion of online retail in countries such as China, India, and Southeast Asia. North America remains a dominant market, owing to the high concentration of established e-commerce players and early adoption of advanced technologies. Europe is witnessing steady growth, supported by strong digital infrastructure and increasing cross-border e-commerce activities. Meanwhile, Latin America and the Middle East & Africa are experiencing rising adoption rates, propelled by improving internet access and a growing base of digital-savvy consumers. This diverse regional landscape underscores the global momentum of the E-commerce Software market.

Deployment Type Analysis

The E-commerce Software market is segmented by deployment type into Cloud-Based and On-Premises solutions, each offering distinct advantages to businesses. Cloud-based e-commerce platforms have gained

Online retail is characterised by intense competition within the industry, which is likely to intensify in the future as more players enter the market. The competition between individual providers in terms of customer acquisition and retention across multiple sales channels is intensified by the lack of physical proximity to customers in online retail. In the period from 2020 to 2025, sales in the sector increased by an average of 4% per year. Due to high energy prices and inflation, the consumer climate deteriorated in 2022 and has only slowly improved since then. This in turn has had an impact on the sales development of the retail sector as a whole and thus also on mail order and online retail, which even recorded a small decline in sales in 2023. Sales growth of 3.5% to €151.2 billion is expected for 2025 due to the slowdown in inflation. Despite the considerable fluctuations in sales, the profit margin of online retail has remained relatively stable in recent years. Only in 2021 did the profit margin increase significantly, as industry sales grew faster than costs.Industry growth in 2021 was primarily driven by the positive economic development and the resulting increase in income as well as the rise in online consumer spending by private households. While the coronavirus pandemic had a negative impact on the economy and brick-and-mortar retail in 2020, online consumer spending increased more than in previous years due to the temporary closure of many shops and consumers' fear of infection. Ongoing intense competition and increasing digitalisation are driving innovation in e-commerce. In order to continue to achieve long-term success, industry players must continuously develop their online system applications, products and services, particularly in relation to mobile shopping trends, identify the right media marketing mix and minimise the risks prevalent in online retail by taking adequate security precautions. In view of the increasing external competition from foreign online platforms such as Temu or Shein as well as bricks-and-mortar retailers who are establishing a web presence including an online shop or expanding their existing internet presence, only moderate sales growth in mail order and online retail is expected in the coming years. Nevertheless, pure mail order and online retail should continue to account for the majority of online retail sales. Between 2025 and 2030, industry sales are expected to grow by an average of 4.8% per year to 190.8 billion euros. The number of companies operating in the sector is expected to increase further.

India Online Grocery Market Outlook

According to our latest research, the global online grocery market size stood at USD 375.4 billion in 2024, with India contributing a significant share of USD 14.8 billion for the same year. The Indian online grocery market is expected to witness robust expansion, registering a compound annual growth rate (CAGR) of 22.3% from 2025 to 2033. By the end of 2033, the Indian market is forecasted to reach USD 115.6 billion, propelled by rapid digitalization, increasing urbanization, and evolving consumer lifestyles. The surge in demand for convenience, coupled with the proliferation of smartphones and internet connectivity, continues to be the primary growth driver for the online grocery sector in India.

The substantial growth of the India online grocery market is primarily attributed to the country’s burgeoning urban population and the rising adoption of digital platforms for everyday shopping. Urban consumers, especially millennials and working professionals, are increasingly seeking convenience and time-saving solutions, making online grocery shopping an attractive alternative to traditional brick-and-mortar stores. The pandemic has further accelerated this shift, as safety and hygiene concerns prompted more consumers to explore online channels for their grocery needs. Moreover, the expansion of e-commerce infrastructure and the entry of major players such as Reliance JioMart, BigBasket, and Amazon Pantry have significantly enhanced product assortment, service quality, and last-mile delivery capabilities, thus boosting market penetration across metro and tier I cities.

Another pivotal growth factor for the India online grocery market is the continuous innovation in delivery models and payment options. Companies are increasingly investing in advanced logistics, cold chain management, and real-time tracking systems to ensure faster and more reliable deliveries. Additionally, the introduction of flexible payment modes, including e-wallets, Unified Payments Interface (UPI), and Buy Now Pay Later (BNPL) options, has made the online shopping experience seamless and secure for a diverse consumer base. Subscription-based models, offering scheduled deliveries and exclusive discounts, are also gaining traction, particularly among households with predictable consumption patterns. These innovations are not only enhancing customer satisfaction but also fostering brand loyalty and long-term engagement.

The market’s growth trajectory is further strengthened by the increasing focus on personalized marketing and data-driven strategies. Online grocery platforms are leveraging artificial intelligence and machine learning to analyze consumer preferences, predict buying behavior, and tailor product recommendations. This data-centric approach enables companies to optimize inventory management, reduce wastage, and offer customized promotions, thus driving higher conversion rates and average order values. Furthermore, the integration of regional languages, voice search, and easy-to-navigate interfaces is making online grocery platforms more accessible to consumers in tier II and tier III cities, thereby expanding the market’s reach beyond urban centers.

Regionally, South India and West India are emerging as the fastest-growing markets, driven by higher digital literacy rates, greater smartphone penetration, and proactive state government initiatives to promote e-commerce. North India, led by metropolitan hubs such as Delhi NCR, continues to hold the largest share, thanks to its dense population and affluent consumer base. Meanwhile, East India is witnessing steady growth as companies intensify their outreach efforts and address logistical challenges unique to the region. The competitive landscape is becoming increasingly dynamic, with both established players and new entrants vying for market share through aggressive marketing, strategic partnerships, and localized offerings.

Product Type Analysis

The product type segment within the India online g