US e-com grows by 14.2% in 2021; comprises 19.2% of total retail sales




US online sales represented 19.2 per cent of total retail sales in 2021, according to early Digital Commerce 360 estimates. Amazon accounted for more than two-fifths of all digital revenue in the country. Consumers spent $871.03 billion online with US merchants in 2021, up by 14.2 per cent year on year (YoY) from $762.68 billion the previous year.

While that is less than half of the record-breaking growth retailers experienced in a pandemic-fueled 2020, it is noteworthy that the industry maintained gains—and even grew—compared with the earlier giant surge in e-commerce, Digital Commerce 360 said in a press release.

Last year’s estimated 14.2 per cent jump in digital revenue pales in comparison to the 31.8 per cent spike in 2020, which currently is still the highest YoY rise since the US department of commerce began recording e-commerce data two decades ago.

US online sales represented 19.2 per cent of total retail sales in 2021, according to early Digital Commerce 360 estimates. Amazon accounted for more than two-fifths of all digital revenue in the country. Consumers spent $871.03 billion online with US merchants in 2021, up by 14.2 per cent year on year (YoY) from $762.68 billion the previous year.

But the significant slowdown meant growth normalised to pre-COVID-19 levels. In fact, the median online sales growth for the five years leading up to the pandemic was 14.2 per cent, and 2019’s uptick was 14.3 per cent.

The first quarter (Q1) of 2021 was the fourth consecutive quarter with over 30 per cent e-commerce growth at 39.1 per cent, according to commerce department data. But that increase was still elevated because it compared to the last largely pre-pandemic quarter in 2020, the company said.

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Since then, growth slowed to single digits—9.2 per cent in Q2 2021 and 6.8 per cent in Q3—resulting in a 16.4 per cent jump in online sales through the first nine months of the year, according to commerce department data.

Digital Commerce 360 estimates e-commerce in Q4 2021 rose by 9.4 per cent YoY. Overall online holiday sales in the United States for the November-December 2021 period grew a more muted 10 per cent, according to Digital Commerce 360.

And an Adobe Analytics analysis puts October 2021 e-commerce growth at 8 per cent, which tempered the quarter’s performance.

Despite the deceleration of online sales growth since the first year of the pandemic and the recovery of in-store shopping, digital penetration remained on par with 2021 since both e-commerce and offline spending grew at roughly the same rate, Digital Commerce 360 noted.

After registering a near all-time high overall growth rate in 2020, total retail sales continued the momentum into 2021. Spending through all channels reached $4.55 trillion last year, up 14 per cent from $3.99 trillion in 2020, according to a Digital Commerce 360 analysis of commerce department overall retail data.

That record YoY climb was nearly double the 7.2 per cent growth in 2020 and still far higher than the previous highest growth of 7.3 per cent in 1999.

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