E-Commerce Predicted to Soar This Year As Overall Sales Decline

E-commerce sales growth is predicted to surge to 18% in 2020, the highest it’s been since 2008, according to a report by eMarketer.

Overall, retail spending in the US is forecasted to decline 10.5% to $4.894 trillion, a prediction that differs greatly from the 2.8% growth to $5.621 trillion forecast in February.

E-commerce is expected to continue to fare well during the ongoing coronavirus pandemic, with an expected $709.78 billion spent in the US, an 18% increase. E-commerce is expected to account for 14.5% of total retail sales in 2020. However, shopping in-person at a store is predicted to decline 14% to $4.184 trillion.

The categories growing the fastest before the pandemic were the food and beverage industry, and the beauty industry. Both industries are expected to continue to do well, with food and beverage sales forecast to take up 58.5% and health, personal care and beauty sales to take up 32.4% of total retail sales.

The top e-commerce retailers will increase their market share in the pandemic, with the top ten e-commerce retailers increasing their market share to 60.1%. Amazon will grow its market share by one percentage point to 38%, remaining in the top position in the market.

Retail e-commerce sales have grown steadily in the last few years, from $423.64 billion in 2018 to reach $709.78 billion this year. The industry is expected to grow an additional percentage point in its share of total retail sales in the next two years, and is predicted to hit $859.28 billion in sales in 2022.

Overall retail sales were hit hard by the coronavirus pandemic, as stay-at-home orders kept shoppers indoors and away from indoor malls and shopping centers. Total retail sales is expected to decline 7.8% in 2021 and is predicted to land at $765.17 billion in sales.