US Online Retail Sales Projected to Hit $1.6 Trillion by 2028

US online retail sales are expected to soar to $1.6 trillion by 2028, representing 27.7% of total retail sales in the country. Key growth areas during this period include over-the-counter (OTC) drugs, tools and home improvement, beauty and cosmetics, as well as pet and garden supplies. The online grocery sector is also anticipated to see significant growth, with its share projected to rise from 14.4% in 2023 to 19% by 2028, driven by an increase in the average spending of online grocery shoppers and the influx of new customers. The report highlights a notable shift in consumer behavior, particularly among Gen Z, who are increasingly using platforms like TikTok and Temu for product discovery and research. This trend is expected to contribute to a rise in mobile shopping, further enhancing the online grocery shopping experience. Currently, Amazon dominates the online retail market with a 38.1% share, followed by Walmart at 6.7%. However, Amazon is witnessing a decline in the number of customers using its platform for product research, while Temu is emerging as a popular alternative among younger consumers. The comprehensive "US Online Retail Forecast" report provides historical and projected data from 2009 to 2028 across 24 retail categories, offering insights into the evolving landscape of online retail in the US. In 2023, online retail sales grew by 9.0%, reaching $1.1 trillion and accounting for 22.2% of total retail sales, underscoring the sector's robust growth trajectory.