US Dominates Global E-commerce with 30.1% Market Share: Report
Payment Cards Lead the Way in American Online Shopping, Survey Reveals
By ChannelMAX Staff Writer
July-2024#15
In a rapidly evolving digital marketplace, the United States has solidified its position as a global e-commerce powerhouse, accounting for a substantial 30.1% share of the worldwide e-commerce market in terms of payment value in 2023. This revelation comes from the 2023 Financial Services Consumer Survey conducted by GlobalData, shedding light on the robust growth and changing dynamics of online shopping in America.
US E-commerce Market: A Titan in Growth
The US e-commerce market experienced a significant surge, growing by 9.8% in 2023 to reach an impressive $2 trillion. This growth trajectory is expected to continue, with projections indicating a 7.9% increase to $2.1 trillion in 2024. The market's expansion is fueled by many factors, including a well-developed payment infrastructure, high smartphone adoption, and widespread internet penetration.
Kartik Challa, Senior Banking and Payments Analyst at GlobalData, comments on this trend: "The US e-commerce market is growing at a healthy pace. Well-developed payment infrastructure, high adoption of smartphones and internet penetration, proliferation of global brands like PayPal, Apple Pay and Google Pay, high merchant acceptance, and the increasing number of online shoppers all support this growth."
Most Popular Payments Solutions in the US:
Payment Cards: The Preferred Choice for American Shoppers
One of the most striking findings from the GlobalData survey is the dominance of payment cards in e-commerce transactions. In 2023, payment cards collectively accounted for 56.3% of all e-commerce purchases in the US. Credit and charge cards alone made up 41.6% of this share, highlighting Americans' traditional preference for card-based payments.
The popularity of payment cards can be attributed to various factors, including:
1. Reward points and cashback offers
2. Discounts at partner merchants
3. Availability of installment payment facilities
Alternative Payment Solutions Gaining Ground
While payment cards remain the frontrunner, alternative payment solutions are steadily gaining traction in the US e-commerce landscape. These options collectively accounted for 30.9% of online purchases, with PayPal emerging as the most preferred alternative payment method. Other notable players in this space include Apple Pay, Amazon Pay, and Google Pay.
"PayPal, launched in 1999 in the US, alone accounted for 7.7% share in total ecommerce payments value in 2023," the survey notes, underscoring the growing importance of digital wallets in the e-commerce ecosystem.
Also Read: Why Do You Need An Automated Repricer On Amazon?
The Future of US E-commerce
Available data shows that the US e-commerce market is poised for continued growth and innovation. GlobalData projects that the market will reach $2.7 trillion by 2028, with a compound annual growth rate of 5.9% between 2024 and 2028.
Challa concludes: "The US e-commerce market is expected to rapidly evolve going forward... Evolving authentication measures that offer enhanced security and faster checkout options will further encourage online payments."
With the integration of AI, sellers and consumers alike can expect to see further advancements in payment technology, enhanced security measures, and an increasingly diverse range of payment options. The rise of cryptocurrencies and Buy Now, Pay Later (BNPL) services like Affirm, Afterpay, and Klarna are just a few examples of the innovations shaping the future of online shopping in America.
In conclusion, the United States' dominant position in the global e-commerce market and the ongoing shift towards digital payments present opportunities and challenges for businesses operating in this space. As consumer preferences change with time, staying ahead of payment trends and adopting innovative solutions is the key to success in the ever-expanding world of e-commerce.
Also Read: Navigating the Digital Commerce Frontier: Top Trends to Watch in 2024
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
By ChannelMAX Staff Writer
July-2024#15
In a rapidly evolving digital marketplace, the United States has solidified its position as a global e-commerce powerhouse, accounting for a substantial 30.1% share of the worldwide e-commerce market in terms of payment value in 2023. This revelation comes from the 2023 Financial Services Consumer Survey conducted by GlobalData, shedding light on the robust growth and changing dynamics of online shopping in America.
US E-commerce Market: A Titan in Growth
The US e-commerce market experienced a significant surge, growing by 9.8% in 2023 to reach an impressive $2 trillion. This growth trajectory is expected to continue, with projections indicating a 7.9% increase to $2.1 trillion in 2024. The market's expansion is fueled by many factors, including a well-developed payment infrastructure, high smartphone adoption, and widespread internet penetration.
Kartik Challa, Senior Banking and Payments Analyst at GlobalData, comments on this trend: "The US e-commerce market is growing at a healthy pace. Well-developed payment infrastructure, high adoption of smartphones and internet penetration, proliferation of global brands like PayPal, Apple Pay and Google Pay, high merchant acceptance, and the increasing number of online shoppers all support this growth."
Most Popular Payments Solutions in the US:
Payment Cards: The Preferred Choice for American Shoppers
One of the most striking findings from the GlobalData survey is the dominance of payment cards in e-commerce transactions. In 2023, payment cards collectively accounted for 56.3% of all e-commerce purchases in the US. Credit and charge cards alone made up 41.6% of this share, highlighting Americans' traditional preference for card-based payments.
The popularity of payment cards can be attributed to various factors, including:
1. Reward points and cashback offers
2. Discounts at partner merchants
3. Availability of installment payment facilities
Alternative Payment Solutions Gaining Ground
While payment cards remain the frontrunner, alternative payment solutions are steadily gaining traction in the US e-commerce landscape. These options collectively accounted for 30.9% of online purchases, with PayPal emerging as the most preferred alternative payment method. Other notable players in this space include Apple Pay, Amazon Pay, and Google Pay.
"PayPal, launched in 1999 in the US, alone accounted for 7.7% share in total ecommerce payments value in 2023," the survey notes, underscoring the growing importance of digital wallets in the e-commerce ecosystem.
Also Read: Why Do You Need An Automated Repricer On Amazon?
The Future of US E-commerce
Available data shows that the US e-commerce market is poised for continued growth and innovation. GlobalData projects that the market will reach $2.7 trillion by 2028, with a compound annual growth rate of 5.9% between 2024 and 2028.
Challa concludes: "The US e-commerce market is expected to rapidly evolve going forward... Evolving authentication measures that offer enhanced security and faster checkout options will further encourage online payments."
With the integration of AI, sellers and consumers alike can expect to see further advancements in payment technology, enhanced security measures, and an increasingly diverse range of payment options. The rise of cryptocurrencies and Buy Now, Pay Later (BNPL) services like Affirm, Afterpay, and Klarna are just a few examples of the innovations shaping the future of online shopping in America.
In conclusion, the United States' dominant position in the global e-commerce market and the ongoing shift towards digital payments present opportunities and challenges for businesses operating in this space. As consumer preferences change with time, staying ahead of payment trends and adopting innovative solutions is the key to success in the ever-expanding world of e-commerce.
Also Read: Navigating the Digital Commerce Frontier: Top Trends to Watch in 2024
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
Disclaimer:
The article is based on available data and only for informational purpose.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
The article is based on available data and only for informational purpose.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.