Online commerce in the United States predicted to exceed $1.6 trillion by 2027, according to a new analysis.
U.S. online retail sales are on an ascending trajectory, with projections estimating a record-breaking $1.6 trillion by 2027. This growth is reflected in the overall retail sector, which is anticipated to generate $5.5 trillion by the same year, according to a recent report from Forrester. Notably, the report forecasts U.S. online retail sales surpassing $1 trillion this year.
In addition, buy online, pick up in store (BOPIS) transactions are expected to escalate, touching $100 billion this year and exceeding $200 billion by 2027, the report reveals. Offline retail sales are predicted to constitute 70% of total retail sales by 2027.
Although the COVID-19 pandemic catalyzed the rapid increase in e-commerce in 2020, some of the retail growth shifted from online to offline in 2021, as noted by Forrester. Brick-and-mortar retail sales reportedly rose 14% in 2021 compared to 2020.
Forrester anticipates the 2022 e-commerce growth to be driven by lower prices, a broader assortment of products, speedier deliveries, and streamlined transaction convenience, as the online retail environment reverts to its pre-pandemic state.
Forrester's research corroborates previous reports indicating that online spending could reach $1 trillion in 2022. Adobe's Digital Economy Index report, released in March 2021, predicted that e-commerce sales would reach $1 trillion this year and found that 30% of online shoppers prefer BOPIS or curbside pickup instead of delivery. Another report from FTI Consulting, released last month, projected that online retail sales would reach $1.07 trillion this year, a figure the company initially predicted for 2025.
While lower prices would offer relief to consumers grappling with inflation, Forrester cautions that retailers' profits could be affected due to excess inventory or consumer concerns about inflation. Target, as well as other major retailers, have had to reassess their financial expectations amid rising inflation and an abundance of products.
Enrichment data suggests that while specific growth figures for 2027 are not universally available, the trend indicates continued expansion of e-commerce in the U.S., driven by increased online shopping adoption and emerging sectors like quick commerce. Other indicators suggest that e-commerce sales could account for over 20% of global retail sales by 2027 and that the U.S. online shopping market could reach nearly $2 trillion by 2029.
- As online retail sales in the U.S. are projected to reach $1.6 trillion by 2027, the AI-driven technology sector could potentially boost the retail industry's finance by streamlining transactions and improving delivery efficiency.
- With BOPIS transactions estimated to exceed $200 billion by 2027, the environment could be impacted by increased packaging and delivery emissions, necessitating research into eco-friendly alternatives for the retail sector.
- The advancements in AI and technology could also influence the economy by creating new jobs and industries, such as quick commerce, further fueling the expansion of e-commerce during the ongoing pandemic.
- Concurrently, factors like inflation and excess inventory could pose challenges for retailers, compelling them to reallocate resources and adjust their financial strategies to maintain profitability.
- Despite the fluctuation in retail sales between online and offline channels, e-commerce sales are predicted to account for over 20% of global retail sales by 2027, underscoring the significance of the digital shopping revolution in shaping the future retail landscape.
