Highlights. COVID-19 lockdowns led to a record increase in online shopping and sales revenue, experts predict upward trends will continue.
- eCommerce revenue in the second fiscal quarter (Q2) of 2020 increased 54.1% year-over-year (YoY).
- The e-commerce share of retail revenue in Q2 2020 grew 60.0% YoY.
- Worldwide, 60% of internet users shopped primarily online in 2020/21, up 13.2% from 2019; in North America, 90% shopped online in 2020, up 11.1% from 2018.
- In the United States, seasonally adjusted* e-commerce revenue represented an all-time record 16.4% of all Q2 2020 retail sales.
- When COVID vaccines became widely available in 2021 (see abbreviated timeline of events) in-store sales growth outpaced e-commerce revenue for the first time since 2001
*Seasonal adjustment accounts for peaks and valleys in the market; all figures in this report are nonseasonally adjusted unless otherwise noted.
U.S. eCommerce Revenue Statistics
While online retail sales were already on the rise, a spike in early 2020 can be attributed to COVID-related lockdowns and brick-and-mortar store closures.
- In Q2 2020, nonseasonally adjusted e-commerce revenue hit a record 15.5% of all retail sales dollars, up 60.0% YoY.
- Also in Q2 2020, total retail sales declined 3.66% YoY.
- From Q1 to Q2 2020, e-commerce revenue grew 39.3%, while all retail sales increased 4.74%.
- E-commerce as a share of retail revenue increased 34.7% from 2019 to 2020.
- In 2021, e-commerce revenue grew at a 6.06% slower rate than in-store sales, making it the first time in-store sales growth outperformed e-commerce growth since 2001 (when in-store sales grew 82.2% faster).
- Prior to COVID, e-commerce saw its largest YoY sales growth in 2000 (13.6%).
Global eCommerce Revenue Statistics
A worldwide increase in online spending is expected to continue, in part due to the growing availability of mobile technology; some nations continue to experience COVID outbreaks.
- Latin America saw the largest spike in online shopping (as a share of all retail spending) with 80% growth in 2020.
- Online spending in Latin America increased 130% faster than in the U.S.
- ASEAN countries (located in the South Pacific) increased online spending 71% in 2020.
- Countries in ASEAN and Eastern Europe increased by the largest number of percentage points (5 percentage points each) after North America (6 percentage points).
- ASEAN countries saw an even greater increase in terms of percentage points (7) in 2021, when the share of online retail revenue increased 58% YoY.
Online Grocery Shopping Statistics
In the first year of the COVID-19 pandemic, online grocery spending increased more than twice as fast as it did from 2017 to 2019.
- Between 2019 and 2020, total revenue from online grocery shopping increased 41.6%; online produce sales increased 143%.
- Compared to the 2020 calendar year, the share of fresh produce purchased online increased 41.2% in 2021.
- From 2017 to 2019, online grocery shopping revenue increased at an average annual rate of 15.1%.
- In years following the pandemic onset, online grocery shopping revenue has increased at an average annual rate of 25.3% or 67.5% faster than its growth prior to 2020.
- Projections indicate that online grocery revenue will continue to grow at rates that outpace its pre-COVID growth, with revenues tripling by 2027.
COVID-19 Abbreviated Timeline
This timeline is limited to major events that may have influenced U.S. e-commerce.
2019
- Nov 17 Patient Zero infected.
2020
- Jan 20 First U.S. coronavirus case reported in the state of Washington.
- Mar 11 World Health Organization declares a global pandemic.
- Mar 15 State officials recommend social distancing and quarantine measures.
- Mar 26 22 U.S. states have issued orders for citizens to remain in their homes.
- Mar 27 CARES Act approved ($2T+ relief package for families and small businesses impacted by COVID.)
- Mar 29 Nationwide social distancing guidelines extended through April 30, 2020.
- May 8 U.S. Bureau of Labor Statistics reports 14.7% unemployment, the highest unemployment rate since pre-WWII.
- Dec 14 First vaccine dose administered in the U.S.
- Dec 24 One millionth vaccine dose administered in the U.S.
2021
- Mar 8 The Centers for Disease Control and Prevention (CDC) states that fully-vaccinated people can safely gather indoors without masks or social distancing measures.
- Jun 3 New daily cases in the U.S. decline to lowest level since March 2020.
- Aug 2 70% of U.S. adults have had at least one dose of a vaccine.
- Dec 1 The first case of the Omicron variant in the U.S. is detected.
2022
- Jan 19 Free at-home tests become available through COVIDTests.gov.
2023
- Apr 10 H.J.Res. 7 is signed into law, officially ending the national emergency related to the COVID-19 pandemic.
These data and insights were compiled by the Capital One Shopping team based on publicly available data.
Sources
- U.S. Census Bureau, Monthly Retail Trade
- Morgan Stanley, Here’s Why E-Commerce Growth Can Stay Stronger for Longer
- Information Resources, Inc., Fresh Produce in the Era of Inflation and Beyond
- Statista, U.S. Food and Beverage E-commerce Revenue
- U.S. Department of Defense, Coronavirus: Timeline
- Centers for Disease Control and Prevention, David J. Sencer Museum COVID-19 Timeline
- The Wall Street Journal, First Covid-19 Vaccine Given to U.S. Public
- Social Science Research Network, Will Robots Automate Your Job Away?
- United Nations Conference on Trade and Development, COVID-19 Boost to E-commerce Sustained into 2021