E-commerce poised for 42% share of US retail growth in 2023: Report

13 Jul '23

2 min read

Pic: Shutterstock

Insights

E-commerce is projected to account for 42 per cent of US retail sales growth, with online retail sales anticipated to hit $1.14 trillion, a 10 per cent YoY increase, as per a report.
While 80 per cent of shoppers believe personalisation enhances their shopping experience, data privacy concerns persist, with only 48 per cent comfortable sharing personal data.

E-commerce is expected to account for 42 per cent of US’ total retail sales growth in 2023, maintaining its pre-pandemic rate, according to the 2023 US Online Retail Report published by FTI Consulting, Inc's retail and consumer products practice. The report predicts that online retail sales in the US are projected to reach $1.14 trillion in 2023, marking a 10 per cent increase from the previous year.

While the annual growth rate for e-commerce is expected to moderate to 10 per cent or less in the coming years, online sales are still projected to grow at double the rate of store-based sales through to 2025.

The report also included a new survey regarding consumer interest and concerns about AI-driven shopping personalisation. According to the findings, approximately 80 per cent of shoppers believe personalisation can enhance their online shopping experience, with 75 per cent of respondents indicating significant interest in receiving personalised product offers and advertisements.

Despite the growing interest in personalisation, consumers expressed concerns about data privacy. Only 48 per cent of respondents felt comfortable sharing personal data like browsing history and transaction history, while only 38 per cent trust retail platforms to manage their personal data, as per the survey.

Notably, Baby Boomers showed less interest in personalisation, with only 46 per cent expressing interest in product recommendations tailored to their interests, and a mere 21 per cent trusting online retailers.

Furthermore, 77 per cent of respondents said they would be most interested in personalised content that includes customised pricing and discounts. About 69 per cent of respondents were highly interested in local recommendations and offers. Fifty-one per cent of respondents said they had concerns about racial and gender-based recommendations.

Gen Z is the age group most likely to shop around, with 72 per cent of respondents saying they would switch retailers for a more personalised experience.

Fibre2Fashion News Desk (DP)

More E-commerce News - United States Of America...