> ## Content Index > Fetch the complete content index at: https://www.livain.com/llms.txt > Use this file to discover other available public pages before exploring further. # E-Commerce as a Share of Retail Sales: The Normalization Era (2025 Update) - URL: https://www.livain.com/blog/e-commerce-as-a-share-of-retail-sales-the-normalization-era-2025-update/ - Published: 2025-06-30T12:36:28.000Z - Updated: 2025-06-30T12:36:28.000Z - Description: In 2020, the world turned to online shopping. For a moment, it felt like e-commerce was destined to replace physical retail entirely. But five years later, the data tells a more grounded story. E-commerce continues to grow — but not in the explosive. What’s really happening? - Author: Remco Livain - Tags: Marketing News ## **The Current Numbers: E-Commerce in 2025** Let’s get straight to the point. As of Q1 2025, e-commerce accounts for **\~16.2%** of total retail sales in the U.S., according to U.S. Census Bureau data. This marks a stable upward trajectory from 14.9% at the end of 2022\. Year-over-year growth remains healthy, with online retail expanding at **8.9% in 2023** and expected to hit **$1.39 trillion** in total sales this year. Globally, that number is higher. E-commerce now represents roughly **20–21%** of total retail sales worldwide — driven by fast adoption in China, South Korea, and increasingly, parts of Europe and Latin America. By 2028, we’re expected to cross the **22.5%** threshold globally. ## **From Surge to Stability: What’s Changed?** [Back in 2020](https://www.livain.com/2022/05/e-commerce-growth-normalizes-as-a-percentage-of-retail-sales-but-why/), the pandemic sent e-commerce skyrocketing. Grocery delivery, online furniture shopping, telemedicine, even virtual fitness exploded overnight. For months, it seemed like physical retail would never recover. But instead of collapsing, **brick-and-mortar retail adapted**. The big shift wasn’t a replacement — it was integration. - **BOPIS (Buy Online, Pick Up In Store)** became a mainstay. - **Curbside pickup** is no longer a novelty. - Brands started using physical stores as **logistics hubs**, blending showroom and warehouse models. E-commerce didn’t plateau because people stopped shopping online. It plateaued because **physical retail evolved to meet digital expectations**. ## **Marketplaces Dominate, But Competition Grows** In the U.S., **Amazon still holds over 40%** of the online retail market. Walmart trails with \~$94 billion in e-commerce revenue, but is closing the gap through aggressive marketplace expansion. New players like **Temu** and **Shein** are shaking up the industry — especially among younger and budget-conscious demographics. Their rapid rise has contributed to over **15,000 U.S. store closures projected for 2025**, according to a report by CoreSight Research. But even as the marketplace wars heat up, the pie is growing. More sellers. More buyers. Higher expectations. ## **So Why Does It Matter?** Understanding the percentage of retail sales that are online isn’t just a trivia stat — it’s strategic insight. - If you’re running a D2C brand: You now operate in a hybrid landscape. Conversion may start online, but trust is often built offline. - If you’re in B2B: Your clients expect consumer-grade speed and service. The Amazon effect has fully arrived. - If you’re in retail real estate: Your tenants are not dying. They’re adapting — and you need to, too. ## **The Path Forward: It’s Not Either/Or** E-commerce won’t swallow retail whole. It will keep growing — gradually, steadily — but not exponentially. That’s not bad news. That’s the sign of a maturing, essential channel. The winners won’t be the ones who go “all-in” on digital. The winners will be those who **connect online and offline** into one fluid customer experience. That’s the real takeaway. The game isn’t e-commerce vs. retail anymore. It’s **experience vs. friction**. ## **Sources** - [US Census Bureau – Quarterly Retail E-Commerce Sales](https://www.census.gov/retail/mrts/www/data/pdf/ec%5Fcurrent.pdf?ref=livain.com) - [WSJ: Bricks-and-Mortar Stores Thrive](https://www.wsj.com/business/retail/these-bricks-and-mortar-stores-thrive-in-an-online-world-2d666308?utm%5Fsource=chatgpt.com) - [CoreSight Research – Store Closures 2025](https://nypost.com/2025/01/24/business/record-15k-us-stores-to-close-this-year-as-shein-temu-surge-report/?utm%5Fsource=chatgpt.com) - [Backlinko – Global Ecommerce Stats](https://backlinko.com/ecommerce-stats?utm%5Fsource=chatgpt.com) ## **For context** I originally wrote about this trend when it felt like we were watching history shift in real time. Now, in 2025, it’s clear: we’re not at the end of the retail story — just a more complex chapter. If you’re building a brand today, ignore the hype. Focus on the blend. That’s where the magic happens. – *Remco Livain* --- **PS:** Want to discuss your own e-commerce or retail strategy? [Connect with me on LinkedIn](https://www.linkedin.com/in/remcolivain?ref=livain.com) or [book a quick meeting here](https://calendar.google.com/calendar/u/0/appointments/schedules/AcZssZ37731DDqvdJqARW90ByE8g8nJ5lF0R7CmNt27OJfAPOJl%5F0iylB8nZBztTRjFMA7QIX4OavanG?ref=livain.com).