North America B2C E-Commerce Market

Market Overview

E-commerce (electronic commerce) is the activity of purchasing and selling things over the Internet or through online services. Mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data gathering systems are all examples of e-commerce technology. Except for shipping and delivery operations, practically all e-commerce sales are conducted over the internet, offering sellers and buyers the convenience and freedom to conduct business at any time and from any location. Because purchasing and selling online is more convenient than traditional sales, B2C e-commerce has become one of the fastest-growing areas in globalisation. Direct sellers, online intermediaries, advertisement-based, community-based, and fee-based e-commerce are the five forms of B2C e-commerce.

During the projection period (2022–2030), the North America B2C E-Commerce market is estimated to reach a valuation of USD 2,289 billion, increasing at a CAGR of 7%. Despite having only 5% of the world's population, the triangle continent of North America contributes to worldwide economic power. In the North American region, one of them is the e-commerce B2C market, which is booming. Customers prefer online purchaases to in-store shopping because of the lower prices. Amazon has the largest market share, albeit it has recently lost ground due to more direct brand sales. Fashion product sales, which comprise garments and footwear, contribute the most to the market.

Market Dynamics

Key Market Drivers

• E-commerce via smartphones is becoming more popular: People's online shopping habits have changed as a result of smartphones. Google surveyed 1,000 people aged 18 to 64 in the United States to see how they use their cell phones to research and shop online. According to the study, smartphones have become popular shopping tools. Smartphones are becoming increasingly popular for conducting research and making purchases of goods and services. Consumers use their smartphones for 77% of research and 46% of purchases, according to the data. With this level of connectedness and flexibility, smartphone users may browse for items and services anywhere and at any time. Smartphone purchases aren't something that happens only once or unintentionally. People that shop on their phones do it on a regular basis. As a result, the expansion of the North America B2C e-commerce market will most likely be driven by expanding smartphone e-commerce during the forecast period.

• Social Media's Emergence as a Marketing Tool: The use of social media as a marketing tool has a number of benefits for B2C e-commerce, which is driving global market growth. Social media marketing is a type of digital marketing strategy that takes use of the popularity of social media networks in order to achieve marketing and branding objectives. Social media is one of the most successful free marketing tools accessible today due to its widespread use and versatility. Social networking is a great way to drive visitors to a company's website. Businesses can use Instagram/Facebook storefronts, direct messages, call-to-action buttons on profiles, and online appointment tools to generate leads and income directly on these networks. Networking, getting comments, holding discussions, and communicating directly with others via direct and indirect relationships with the audience are all possible on these platforms. As a result, the advent of social media platforms such as Facebook, Instagram, and YouTube, among others, and the use of these platforms as a marketing tool to grow a business is expected to fuel North American market expansion over the forecast period.

Key Market Restraints

• Customers are unable to try products before making a purchase: If a consumer has a query at the store, a salesman is on hand to help. However, one downside of ecommerce is that most businesses take a long time to reply to client inquiries. The reality is that most clients anticipate a reaction from a business on social media within an hour. If you take too long to answer to their message, they will become enraged, and this will build a poor perception, which can limit the market growth.

Key Market Opportunities

• The Internet of Things is gaining traction quickly (IoT): The e-commerce industry is undergoing major technical transformations in North American region. As consumers' lifestyles change and become more accustomed to online shopping, it is becoming increasingly vital for industry participants to employ technology to offer customer-friendly services. The Internet of Things (IoT) is the most recent technological advancement. IoT-enabled devices use the internet to communicate, allowing shops and e-commerce businesses to operate more efficiently. With the introduction of IoT gadgets such as smart mirrors that let customers to virtually try on garments and Amazon dash buttons that assist users in replenishing their favourite products, this ingenious technology has radically transformed the way consumers buy online. The growing use of IoT in B2C e-commerce offers a number of advantages over the traditional paradigm. The Internet of Things (IoT) makes it easier for businesses to manage distribution networks, inventories, warehouses, and customer experiences. As a result, the increased adoption of IoT in the B2C e-commerce trade is expected to create attractive growth prospects for market in North America to build the operations over the forecast period.

Regional Analysis

The North America B2C E-Commerce market is expected to reach a valuation of USD 2379 million during the forecast period (2022–2030), growing at a CAGR of 9.25%. Despite possessing only 5% of the world's population, North America's triangular continent contributes to global economic dominance. One of them is the burgeoning e-commerce B2C sector in the North American region. North America has one of the highest rates of internet adoption in the world. North America's market growth has been aided by greater e-commerce adoption and the presence of a robust, developed, and quick logistics infrastructure.

Consumers in the United States are picky about product quality, composition, and pricing, which encourages them to accept international brands and products. With revenue of $599 billion in 2021, the United States is the second largest market for eCommerce, trailing only Japan and China. The B2C eCommerce market in the United States grew by 11% in 2021, contributing to a global growth rate of 29%. B2C eCommerce sales are continuing to rise in the United States. New markets are forming, and established markets have the potential to grow even more. Over the next few years, global growth will continue.

Canadians, who are among the world's most frequent Internet users, have embraced electronic commerce in the face of a severe disruption in retail outlets. In 2021, there were over 27 million eCommerce users in Canada, accounting for 72.5% of the population, with that number predicted to rise to 77.6% in 2025. B2C eCommerce sales in Canada are continuing to rise, both in real terms and as a percentage of overall retail, thanks to an increase in online customers. Internet consumer sales have increased at a much faster rate than traditional retail sales during the last decade. To improve business-to-consumer (B2C) relationships, most Canadian retailers have adopted wireless technology and internet-based systems.

E-Commerce is expected to account for more than half of total sales growth in Mexico by 2025. Mexico's Internet users and online buyers have already increased and are continuing to do so. Cross-Border E-Commerce has also grown in popularity, with nearly two-thirds of Mexican internet shoppers visiting international websites. Over the next five years, B2C E-Commerce sales in Mexico are expected to continue to rise.

Segmental Analysis

The North America B2C E-Commerce market share has been classified based on type, application, and region.

The B2C e-commerce market has been segmented into B2C retailers and classifieds based on type. The B2C retailers' type segment is expected to dominate the region’s market, and it is projected to reach USD 7,971 billion by 2030, registering a CAGR of 8% during the forecast period. Over the forecast years, a surge in internet banking and mobile transactions is anticipated to propel the segment.

Secondly, smart city developments and urbanization have led to a westernized lifestyle in emerging economies, transforming purchasing patterns from conventional to online. The increase is ascribed to globalization's ease of doing business, efficient logistics network, and significant demand beyond countries.

The B2C e-commerce market has been segmented into automotive, beauty & personal care, books & stationery, consumer electronics, clothing & footwear, home décor & electronics, sports & leisure, travel & tourism, media & entertainment, information technology, and others based on application. The clothing & footwear application segment is expected to dominate the North American market, and it is projected to reach USD 2,607 billion by 2030, registering a CAGR of 11% during the forecast period.

This is due to the rapid growth of the online fashion sector, which allows merchants and manufacturers to sell their products. Multiple payments and merchandise options, home delivery, and quick returns are all advantages of shopping on fashion websites. With the help of the search system, the user-friendly and straightforward web page interface allows for easy exploration of multiple product types, enhancing the consumer's delight.

Apparel websites eliminated store lines, expanded retailers reach, and allowed consumers with busy schedules to "shop from anywhere." Likewise, virtual dressing rooms, gate delivery, and returns have eliminated the need for transportation or travel, while websites are available for shopping 24 hours a day, seven days a week.

Recent Developments

• Caper AI will be acquired for USD 350 million in cash and equity by Instacart Inc. in 2021.This company creates self-checkout shopping carts in order to broaden its development options ahead of its anticipated IPO.
• Adidas AG has agreed to sell its faltering Reebok subsidiary to Authentic Brands Group Inc. for about USD 2.50 billion, adding yet another well-known brand to the buyer's growing portfolio.