Assessment of American and British e-commerce in 2023: the latest figures
The state of american e-commerce in 2023
Despite an overall slower economy, e-commerce in the United States has maintained its role as a growth engine, contributing to nearly half of the total retail growth. In 2023, e-commerce accounted for 22.0% of total U.S. retail sales. E-commerce sales in the United States reached approximately $1.119 trillion in 2023, recording a growth of 7.6% compared to 2022.
E-commerce Leaders
In the landscape of e-commerce in the United States, the two unbeatable giants, Walmart and Amazon, continue to dominate. Amazon increased its market share to 53% in the third quarter, compared to 48% the previous year. Meanwhile, Walmart recorded sales of $18.6 billion, representing 6.8% of the market.
Similar to Europe, Temu and Shein are quickly adapting to the American market and gaining traction among the Generation Z.
Technological Innovations and Trends
Next-generation Artificial Intelligence (Gen AI) plays a pivotal role in American e-commerce, enabling hyper-personalization through personalized marketing, AI-assisted search, replenishment, product images and descriptions, as well as intelligent chatbots enhancing customer service.
Influencer marketing has experienced significant growth, becoming a $21 billion industry in 2023. A substantial portion of Generation Z (78%) and millennial women (61%) express trust in influencers, especially in the beauty and wellness sector.
Buy Now, Pay Later solutions exploded in 2023. Adobe reported that $8.3 billion was spent during the holiday season through these platforms until November 27, representing a year-on-year growth of 17%, accounting for approximately 7.5% of total season revenues. It is expected that Buy Now, Pay Later solutions will continue to thrive in 2024 with increasing demand for micro-credits.
The state of british e-commerce in 2023
The United Kingdom positions itself as the third-largest global e-commerce market, with online retail sales reaching $131 billion in 2023, placing it behind China and the United States. In 2023, the country has nearly 60 million e-commerce users. Reports indicate that online retail sales account for over 30% of total retail sales in the United Kingdom.
Despite an overall decrease in retail sales volumes attributed to the current economic crisis, online retail appears to be less affected than physical stores. This resilience suggests the ability of e-commerce to thrive in challenging economic conditions.
Top-performing sectors in the UK
The fashion sector stands out as the most significant, contributing to 28.7% of the total e-commerce revenue in the United Kingdom. It is followed by electronics with 16.8%, leisure and hobbies with 15.9%, food with 12.3%, furniture and household items with 9.6%, personal care products with 9.4%, and DIY items with the remaining 7.4%.
British shopping preferences
With 97% of British consumers currently owning a smartphone, mobile commerce (m-commerce) has experienced significant growth. In 2023, approximately 71% of online retail sales orders in the UK were estimated to be made via a smartphone, followed by desktop computers (28%) and tablets (2%).
Regarding payment preferences in the UK, electronic wallets (eWallets) have surpassed cards as the most popular online payment method. In 2022, 35% of British consumers used eWallets for their online purchases, followed by credit cards (24%), debit cards (22%), account-to-account transfers (9%), and the 'Buy Now Pay Later' option (8%). PayPal, Apple Pay, and Google Pay™ are among the most commonly used eWallets by British consumers in 2023.
Focus on the state of the gift card market
Despite an 8% decline in the amounts loaded onto gift cards, both in the B2C and B2B sectors, the gift card market continues to display remarkable vitality. This reduction can be attributed to a challenging economic environment and budgetary constraints, but the market's resilience demonstrates its ability to adapt, driven by innovation and the shift in consumer preferences towards more digitized and flexible solutions.
On the consumer side, the average amount of gift cards remains stable at €101, with 25% of additional payment, averaging €57. Although supplementary payments have decreased compared to the previous year, this reflects a trend towards more moderate impulse purchases for budgetary management.
A notable statistic is that 11% of purchased gift cards were not used, with an average amount of €46, remaining stable compared to the previous year.
In any case, individuals enjoy giving gift cards that allow them to stick to their budget and receiving them to gain purchasing power on products considered useful.
In the B2B sector, the average amount of orders for batches of gift cards has seen a significant increase, approaching €9,000. This rise is explained by a greater number of gift cards purchased, averaging 124 cards per order.
The central pillar of the gift card market lies in its widespread distribution through third-party distributors such as Employee Committees (CSE), loyalty and incentive programs, etc. The average value of multi-distributed gift cards remains stable at €75, but the flows are increasing, especially with the multiplication of salary endowments aimed at giving purchasing power back to employees. Moreover, there is a growing demand from loyalty platforms, consumer incentive platforms, cryptocurrency platforms, and others for single-brand e-gift cards. The gift card remains an essential tool for both individuals and businesses, positioning itself as a favored option in the contemporary economic landscape.
