Market Trends of North America Dropshipping Industry
The electronics and media segment is expanding rapidly
• The US is not only known for its technology-savvy consumer base that buys electronic devices through digital channels but also for its lucrative consumer electronics E-commerce segment, which generated revenues of more than USD 90 billion in 2022.
• Home to the world-famous Silicon Valley, it’s no surprise that US tech companies dominated the global market. Looking at the top consumer electronics online stores worldwide, all but one among the top five companies were U.S-based enterprises. Amazon and Apple ranked as the world’s two most valuable brands in 2023, with a combined brand value approaching USD 300 billion.
• In fact, Amazon accounts for almost 50% of total retail e-commerce revenue in the United States in the category of computers and consumer electronics. This is also evident in the Top Consumer Electronics Online Stores list in the United States, where Amazon was the clear market leader. In 2022, Amazon generated more than USD 44 billion in net e-commerce sales, surpassing industry leader Apple by a whopping USD 15 billion.
United States holds a prominent position in the market
The US e-commerce market has been constantly changing over the last decade and can claim to be one of the biggest e-commerce markets in the world. E-commerce sales in the retail sector are expected to increase at a CAGR of 9.2% from 2023 to 2027, reaching an estimated USD 1.4 trillion.
Amazon is by far the largest online retailer in the United States. Not only does it hold the largest online shopping market share, but it also leads the pack when it comes to online retail sales. In 2022, Amazon significantly outpaced its US competitors, generating approximately USD 130 billion in retail e-commerce revenue in the country. Other leading e-retailers include eBay, Walmart, Target, and Apple.
Customer satisfaction with e-commerce retail is high in the US. However, e-commerce sales account for only about 15 percent of total retail sales in 2023, and eight in ten US internet users were expected to shop online in 2022.
E-commerce channels such as online retailers, brand websites, and online marketplaces are all popular, but social media is becoming increasingly important for online shoppers. For example, in the last four months of 2022, 3 out of every 10 Gen Z shoppers surveyed in the United States bought a product from a social platform.
Mobile shopping is one of the fastest-growing aspects of the global e-commerce market, and it’s no different in the United States. As social commerce continues to grow, so does the number of mobile shoppers. It’s no surprise that smartphones are the most popular devices used to shop online in the United States today. This large base of mobile shoppers directly affects mobile commerce revenue.
By the end of 2022, mobile commerce accounted for 38 percent of total e-commerce sales. While online retail orders have decreased overall in the United States, mobile commerce has remained the shopping channel with the least impact.
