The United States e-commerce landscape witnessed continued growth and evolution in 2023. The dominance of these top online retailers reflects broader trends in the U.S. e-commerce market. By 2027, forecasts show that the online market will grow to more than 50 percent. U.S. online shoppers purchase fashion and food and beverages the most via the internet.
Amazon’s leading position highlights how comprehensive product offerings and logistical efficiency continue to capture a vast proportion of the market. Meanwhile, traditional retail giants like Walmart and Kroger are leveraging their robust physical presence and transitioning effectively into the online space. Electronics and technology brands like Apple and Best Buy underline the sustained consumer appetite for cutting-edge tech products.
Similarly, home improvement stores like The Home Depot and furniture retailers like Wayfair signify the growing online demand for home-related products, likely influenced by the ongoing trend of remote work and home improvement projects. Costco and Target exemplify the hybrid model of retail where value-driven propositions extend seamlessly into e-commerce. This hybrid model allows for advantages in both price competitiveness and customer reach. According to Statista report, market share of leading retail e-commerce companies in the United States, below are the ten biggest online retailers in the U.S., as well as insights into their primary product offerings.
Market share of leading retail e-commerce companies in the United States in 2023
1. Amazon
Market share: 37.6%
Maintaining a sturdy hold at the top of the e-commerce hierarchy, Amazon reigned supreme with a massive 37.6 percent of the market share. Known for its extensive array of products, Amazon offers everything from electronics to clothing, books, home essentials, and groceries. Amazon Prime’s rapid delivery services and the dominant Amazon Web Services (AWS) further consolidate its position as the market leader.
2. Walmart
Market share: 6.4%
Walmart’s e-commerce efforts have shown significant progress, securing them a market share of 6.4 percent and placing them second. The retail behemoth’s online store offers various products, including groceries, apparel, electronics, and household items. Walmart’s aggressive push into the online shopping space has been bolstered by its grocery delivery services and the Walmart+ membership program, which offers free shipping and discounts.
3. Apple
Market share: 3.6%
Apple, renowned worldwide for its premium electronics, comes in third with a 3.6 percent market share. The tech giant’s online store is the go-to destination for iPhones, iPads, MacBooks, and accessories. Apple’s ecosystem of products and services, including the App Store and iTunes, ensures a steady stream of online customers.
4. eBay
Market share: 3%
With a market share of 3 percent, eBay continues to thrive as a major player in the e-commerce sector. Differentiating itself with its auction-style sales model, eBay allows users to buy and sell a diverse range of goods, from collectibles and fashion to electronics and automotive parts. The platform’s flexibility and global reach make it a preferred choice for many online shoppers.
5. The Home Depot
Market share: 2.3%
The Home Depot, specializing in home improvement supplies and construction products, ranks fifth with a market share of 2.3 percent. The retailer offers an expansive selection of tools, appliances, and building materials. Their online store complements widespread physical locations, enabling convenient in-store pickups and extensive product availability.
6. Target
Market share: 1.8%
Target secures its spot with 1.8 percent of the market share, appealing to a wide demographic with a mix of affordable and stylish products. Their online portal offers items across diverse categories, including home goods, electronics, clothing, and groceries. Target’s popular curbside pickup and same-day delivery services have enhanced its online shopping appeal.
7. Best Buy
Market share: 1.6%
Best Buy, a leader in electronics retail, takes seventh place with 1.6 percent of the e-commerce market share. Specializing in consumer electronics, Best Buy provides a range of products such as TVs, computers, mobile phones, appliances, expert tech support, and installation services. Their website often features exclusive online deals, making it a top choice for tech enthusiasts.
8. Kroger
Market share: 1.5%
Primarily known for its grocery chain, Kroger harnesses a 1.5 percent market share online. The company’s online platform focuses on groceries and household products, offering home delivery and curbside pickup services. Kroger’s loyalty programs and personalized shopping experiences keep customers returning online.
9. Costco Wholesale
Market share: 1.4%
Costco, popularly known for its membership-based warehouse stores, holds a 1.4 percent market share. Their e-commerce site reflects the same value-for-money principle, selling bulk quantities of products across various categories, including electronics, groceries, clothing, and home essentials. Online shopping at Costco often comes with exclusive deals for members, emulating the in-store experience.
10. Wayfair
Market share: 1.3%
Wayfair rounds out the top ten with a 1.3 percent market share. Specializing in home goods and furniture, Wayfair has carved a niche in the online retail market by providing a broad selection of furniture, décor, and household items. Their focus on an extensive catalog, frequent sales, and an intuitive shopping experience has garnered a loyal customer base.
Final Thoughts
For consumers, the evolution of these online giants brings unparalleled convenience, variety, and access to competitive pricing. For retailers themselves, maintaining or improving their market position will require continuing innovation in logistics and customer experience, harnessing emerging technologies, and tackling evolving consumer preferences.
In conclusion, the e-commerce landscape in the United States in 2023 reflects strategic diversification, technological integration, and the leading players' relentless focus on customer satisfaction. As the sector continues to grow, these retailers are set to maintain a significant influence over the market and how consumers shop online.
