Predictions are as difficult as ever to make, but new data and forecasts in the 2025 State of American Ecommerce Report for Digital Commerce 360 showcase some of the most important stories playing out now in online retail.
From the most active categories to the top online retailers in North America, the latest edition of this annual report breaks down which areas of ecommerce are growing and where stagnation could become a problem in the years ahead.
Packed with projections, historical data, shopper demographics and retailer rankings, the report shows where an expected $1.2 trillion in online retail is expected to take place in 2025. To assemble this report, Digital Commerce 360’s analysts looked at 2024’s online sales results from companies tracked in the Top 2000 Database and put them into context to show where growing online merchants are finding opportunities and which macro factors are holding others back.
Filled with charts and key takeaways about category leaders, this report highlights what retailers need to know to navigate the current landscape.
To see where ecommerce is going, watch Mass Merchant growth at the expense of other key categories
Only 54 of the 1,857 online retailers tracked in the State of American Ecommerce Report fall into the Mass Merchant category. Still, Digital Commerce 360 projects that this cohort’s annual web sales will reach $787.72 billion by 2026. The group includes overall leaders Amazon and Walmart, which not only sell general merchandise, but reach into other categories, including Automotive Parts, Consumer Electronics, Jewelry and Office Supplies.
As these retailers continue to grow — and both Amazon and Walmart continue to do so — online sales in other categories have begun to plateau or decline. For instance, both Automotive Parts & Accessories and Jewelry are expected to see rates of web sales growth decline, with Automotive Parts & Accessories specifically falling slightly to $7.93 billion annually by 2026.
Health & Beauty is one of the strongest categories for U.S. ecommerce
Led by household names including Walgreens and Ulta Beauty, Health & Beauty is one of the fast-growing categories we covered in this year’s report. With annual web sales projected to grow from $13.57 billion in 2018 to $48.89 billion by 2026, the category also has a three-year compound annual growth rate of 10.9%. In fact, Walgreens and 10 other retailers in this category each brought in more than $1 billion in ecommerce sales in 2024.
All of this is happening despite shakeups for pharmacies in the world of physical retail, where Walgreens, CVS and Rite Aid have all seen widespread store closures in recent years.
Five retailers with more than $1 billion in web sales did half of those sales internationally
In addition, the new report puts American ecommerce into context internationally. At a time when new tariffs have implications for ecommerce, a handful of North America’s most successful online retailers depend on international sales for more than half of their overall web sales. That short list of just five retailers includes Apple and Nike, as well as the No. 2 name in Health & Beauty, iHerb.
Top U.S.-based online retailers who depend on international web sales
The 2025 State of American Ecommerce Report unpacks all of the above ecommerce trends and much more. Preview the report at that link, and go even deeper with this year’s full release.
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