Unlocking revenue potential in the US eCommerce market
The US eCommerce market is a powerhouse, showing substantial growth and offering immense potential for businesses looking to maximize their revenue. In 2024, the US eCommerce industry is projected to reach $843.82 billion, driven by high internet penetration rates and the convenience of online shopping services such as pick-up and drop-off (PUDO) options.
This article explores the latest eCommerce and payment trends in the US and how businesses can leverage these insights to enhance their revenue, with a special focus on how Silkpay’s services can facilitate this transformation.
Growth projections and market size
The US eCommerce market is set for remarkable growth, with projections indicating a rise from $727.29 billion in 2023 to $843.82 billion by 2024. This growth is driven by increasing internet penetration rates and the popularity of convenient online shopping services like pick-up and drop-off (PUDO) options.
Additionally, the overall eCommerce market is expected to reach $1.39 trillion by 2025 and $1.7 trillion by 2027, growing at an average annual rate of 10.9% from 2025 to 2027.
Key influencing factors for online shopping
Several factors are driving US shoppers to embrace online shopping:
Convenience: 48% of shoppers find it more convenient than commuting to a store. This preference for convenience is a significant driver, as online shopping allows consumers to avoid the hassle of commuting and parking.
Unique product availability: 37% of shoppers buy things online that aren’t available in physical stores. Online platforms offer a wider range of products, including exclusive and niche items that might not be stocked by local retailers.
24/7 accessibility: 47% of consumers appreciate the ability to make purchases at any time of the day. This flexibility caters to varying schedules and spontaneous purchasing decisions, enhancing the overall shopping experience.
Additional data
Further supporting these trends, a 2024 report revealed that 84% of social media marketers predict consumers will increasingly buy products directly through social media apps rather than third-party websites. Moreover, the US eCommerce market accounted for 15.6% of total retail sales in the third quarter of 2023, highlighting its significant and growing role in the retail sector.
These trends underscore the importance of convenience, availability, and flexibility in driving the growth of the US eCommerce market. Businesses that can leverage these factors are well-positioned to maximize their revenue in this dynamic landscape.
Cross-border shopping trends
Cross-border eCommerce
The US ranks second globally for cross-border buyers, with 69.8 million shoppers making international purchases. In 2024, nearly one-third of all US digital buyers are expected to make online purchases from businesses overseas. The top countries for cross-border purchases include China (27%), Canada (11%), and the UK (9%).
Cross-border eCommerce is growing rapidly, outpacing domestic eCommerce with an annual increase of 44% in 2023. This growth is driven by factors such as the availability of unique products, competitive pricing, and the appeal of international brands. Additionally, improved logistics and technology have made it easier for consumers to shop from international retailers, contributing to the growth of cross-border transactions. For instance, 75% of US consumers are motivated to shop cross-border due to better prices, while 66% seek products not available domestically.
Top performing eCommerce categories
In 2023, the best-performing eCommerce categories in the US were:
Clothing: Representing 43% of eCommerce sales.
Shoes: Accounting for 33% of eCommerce sales.
Food and beverage: Making up 26% of eCommerce sales.
Additional data reveals that the fashion sector, including clothing and accessories, is expected to generate $162.9 billion in annual revenue. Food and beverages follow closely, projected to reach $125.6 billion, driven by the convenience of online grocery shopping and the rise of delivery apps. Electronics, another major category, is forecast to hit $120.1 billion in revenue by the end of 2024.
Online payment trends
Preferred online payment methods
In the US, debit cards (56%) and credit cards (47%) remain the most popular online payment methods. This preference underscores the importance for businesses to support these payment options to meet customer expectations and facilitate smooth transactions. Additionally, mobile payment solutions are on the rise, with Apple Pay being the most used format among US consumers.
Rise of buy now, pay later
The Buy Now, Pay Later (BNPL) payment option is gaining significant traction in the US. During Amazon Prime Day 2023, revenue generated via BNPL options increased by 20% compared to the previous year.
This trend reflects a growing preference among US online shoppers for installment payment options, which offer flexibility and ease of budgeting. BNPL services, such as those offered by Affirm and Klarna, are becoming increasingly popular, with projections indicating continued growth as consumers seek more flexible payment solutions.
These trends and data points highlight the evolving landscape of eCommerce and payment preferences in the US. Businesses that adapt to these changes by integrating diverse payment options and focusing on popular product categories are well-positioned to maximize their revenue in this dynamic market.
How Silkpay can help merchant for eCommerce success
30+ most popular payment methods
Silkpay offers a robust suite of solutions designed to help businesses navigate the evolving landscape of digital payments in the US eCommerce market. It supports over 30 payment methods, including major credit cards, debit cards, and various digital wallets. This extensive range allows businesses to cater to the local preferences of customers across different regions. The ability to accept multiple payment options ensures that businesses can accommodate the diverse needs of their customers, leading to higher satisfaction and increased sales.
API integration
Silkpay provides powerful API integration capabilities that allow merchants to seamlessly incorporate popular digital wallets like WeChat Pay and Alipay into their e-commerce websites or mobile applications.
Plugins
Silkpay’s plugins for PrestaShop and WooCommerce make it easy for merchants to accept over 30 payment methods. The PrestaShop plugin can be downloaded and installed with just a few clicks, enabling global payment acceptance quickly and efficiently.
The WooCommerce plugin supports major payment methods such as Alipay, WeChat Pay, UnionPay, Visa, and Mastercard. It works by generating a QR code that customers can scan using the Alipay or WeChat Pay apps to proceed with the payment. This seamless integration ensures a smooth and consistent payment experience for customers, enhancing online presence and increasing conversion rates.
PaybyLink
The PaybyLink feature is particularly beneficial for facilitating secure and convenient remote transactions. Merchants can generate payment links that can be sent to customers via email, SMS, or social media. Customers can then complete their payments using their preferred method, whether it’s Alipay, WeChat Pay, UnionPay, Visa, or Mastercard.
This flexibility not only enhances the customer experience but also broadens the business's ability to capture sales from diverse markets and customer bases.
PaybyLink is an ideal solution for businesses looking to expand their reach and offer a seamless payment experience to their customers.
Security measures
Security is a paramount concern for both consumers and merchants in the digital payment ecosystem. Silkpay employs advanced security technologies to ensure that sensitive information is protected, reducing the risk of data breaches and fraud.
Conclusion
The US eCommerce market presents numerous opportunities for businesses to maximize their revenue by understanding and leveraging key trends. Digital wallets, cross-border shopping, and flexible payment options like BNPL are reshaping the eCommerce landscape.
By integrating Silkpay’s comprehensive payment solutions, businesses can stay competitive, meet customer demands, and drive growth.
Explore Silkpay’s offerings to transform your payment processes and thrive in the dynamic US eCommerce market. For more information and to start your journey with Silkpay, contact our team of experts.
Source
https://www.oberlo.com/statistics/us-ecommerce-growth-projections
https://www.mordorintelligence.com/industry-reports/united-states-ecommerce-market
https://www.digitalcommerce360.com/product/state-of-american-ecommerce-report/
https://www.shopify.com/blog/top-online-shopping-categories
https://blog.hubspot.com/marketing/ecommerce-statistics
https://mailchimp.com/fr/resources/top-online-shopping-categories/
<a href="https://www.freepik.com/free-photo/happy-businesswoman-using-smart-phone-credit-card-while-shopping-internet-night-office_25744701.htm">Image by Drazen Zigic on Freepik</a>
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.