E-commerce has grown enormously over the past decade, accounting for over 15% of total US retail sales by 2021 – up from under 4% in 2010. Online players like Amazon and platform marketplaces are rapidly gaining market share across categories like electronics, apparel, beauty products and groceries.
in The US – many traditional brick-and-mortar retailers are struggling to adapt their high fixed cost base to lower in-store volumes as consumers shift online. This has led to major waves of physical store closures over the past five years including former mainstays like Sears, JC Penney and Macy’s. Mall anchors and department stores face particular pressure.
However—some big-box chains are fighting back through major investments in omnichannel capabilities that better integrate the retail experience between online and offline channels. Curbside pickup, same-day delivery, and cross-channel returns aim to meet rising consumer expectations.
Within The US – Logistics and last-mile delivery infrastructure is racing to keep up with booming e-commerce shipment volumes and demanding speed expectations. Automated fulfillment centers allow rapid processing but involve significant upfront investment. And the overall net employment impact as physical retail contracts while logistics expands is still disputed.
Sustaining technology leadership in The US through startups and emerging tech firms will thus remain vital for overall US economic strategy given the key enabling role they play across multiple industries.
In The US – many small businesses are increasingly embracing online channels for sales reach, customer acquisition and resilience against economic shocks. Digital tools provide granular data-driven insights to enable more targeted, personalized marketing outreach.
Changes in sales tax regimes across multiple states, within The US, have also helped level the playing field somewhat between online sellers and traditional main street retailers. Further policy support for struggling physical stores may emerge given widening inequality and social impacts of mass closures.
