Users’ shopping habits have been drastically changed and shaped a lot nowadays with the prevalence of e-commerce. Compared to purchasing offline in physical stores, online shopping has more advantages, and the stores also offer more services like free returns, competitive pricing, etc. to entice users to buy.
The fashion industry occupies the largest share of the total market size, no matter whether it is offline or online. But it’s still a fast-growing place with many fierce competitors.
Let’s discuss the online fashion business in the United States, dominated by big companies, with market data.
Online Sales Revenue
This chart reveals the data of online retail sales revenue generated from the segment of clothing and accessories. From the chart, we know that in 2020, net sales of fashion contributed $110.5 billion, and it is expected to reach $153.6 billion by 2024.
Online Sales Forecast
This forecasting chart presents the expected share of clothing and accessories as a percentage of total online sales revenue from 2017 to 2024. In 2019, fashion online sales accounted for about 30% of the total revenue of online retail sales.
Online Sales Categories
Among the categories of online retail, clothing and accessories have the strongest growth. As of February 2021, retail sales of clothing and other fashion accessories increased by almost 19% compared to the year before. The second growing segment is food and drinks, with about 18%. The equipment recorded the slightest increase of 8.5%, which is lower than the average online retail growth.
Ranked Brands Globally
For global data, Zalando has a market cap of around $30.5 billion and is the No. 1 fashion online retail company worldwide. According to the public data of 2021, it surpassed its rivals. Additionally, the companies referenced in this chart are all fast-growing online retailers.
Online Fashion Brands in the United States
In the United States, Macys.com is the No. 1 online fashion company. Its online net sales in 2020 were around $5.022 billion. Amazon followed with $4.499 billion. Gap.com’s annual online retail sales were $4.261 billion in 2020. The fourth-largest online player is Walmart’s online store. In 2020, its net sales generated were $4,111 million.
Top 10 Brands on Amazon
This chart shows the top 10 brands that appeared on Amazon Fashion in 2018. The rank standard is based on the number of products listed on the marketplace. The results show that Nike was the market leader, with about 16,000 products listed on the Amazon platform.
Most Popular Fashion Websites
Since the fourth quarter of 2020, Shein.com has become the biggest online fashion website in the U.S. The number of visitors to its website has grown by 120%.
Products’ Search Behaviors of Consumers
This chart was made based on a survey conducted in 2019. The truth in this chart is that in the United States, almost 60% of consumers like to visit the shop’s brand websites to find products they are interested in.
Overall, the data in this post doesn’t offer any actionable pieces of advice for your business, it simply provides you with the market information and outlook. It’s your job to decide what to do, how to implement it to adapt your online retail business to the future.
The market is big, competition is everywhere, and as a small business entrepreneur, you can’t run away from it. Face the reality: doing effective market analysis, choosing familiar fields with fewer competitors, and building your advantage barriers are very crucial to your online business breakthrough.
If you have no ideas at all after reading, why not read this post of trending products and niche ideas or the content about the online shopping behaviors of customers. You can definitely get inspiration and motivation from it.