U.S. Fashion Ecommerce Market Size and Trends

The U.S. fashion ecommerce market size was valued at US$ 108.10 Bn by 2023 and is expected to reach US$ 248.07 Bn in 2030, growing at a compound annual growth rate (CAGR) of 12.6% from 2023 to 2030.. Ecommerce fashion includes the online sale of apparel, footwear, accessories, jewelry, bags, and other fashion products. The growth is driven by factors like increasing smartphone and internet penetration and growing influence of social media and digital marketing in shopping decisions.

The U.S. fashion ecommerce market is segmented by product type, end user, price range, category, distribution channel, and region. By product type, the market is segmented into apparel, footwear, accessories, beauty products, jewelry, bags, and others. The apparel segment accounted for the largest share in 2022. The growing adoption of online shopping for clothes due to benefits like ease of return policies and discounts is driving the apparel segment’s growth.

U.S. Fashion Ecommerce Market Trends:

Movement towards Sustainable Fashion: Sustainability is an emerging trend in the U.S. fashion ecommerce market driven by environment-conscious consumers. Shoppers are increasingly looking for eco-friendly materials, ethical production, transparency, etc. Retailers are promoting their green credentials and partnering with sustainable brands. Product labeling helps identify organic, recycled, or upcycled items. Guidelines for responsible disposal of clothing are being provided. Clothing rental allows reuse of apparel. Resale through peer-to-peer platforms like Depop and Poshmark is gaining popularity. The use of eco-packaging signals commitment to reducing fashion’s carbon footprint. Sustainability efforts can help build brand image and customer loyalty.
Live Video Commerce Gaining Traction: Live video shopping enabling real-time interactions between customers and influencers and retailers is rising in popularity. Platforms like ShopShops, Popshop Live, and NTWRK provide vibrant video commerce experiences. Viewers can purchase featured products instantly with link integration. User-generated content through livestreams is perceived as more authentic. Live events like fashion shows, store tours, and AMAs build engagement. Gamification elements like limited-edition drops and real-time offers prompt impulse purchases. The interactive nature provides valuable consumer data. Chinese retailers have achieved major success with livestreaming. U.S. fashion brands can further leverage live video commerce across social platforms.
Launchpad for D2C Emerging Brands: Ecommerce provides a launchpad for direct-to-consumer (D2C) fashion brands without dependence on intermediaries. Digital platforms enable building awareness and community around new brands. Lower launch barriers allow niche brands to target specific consumer segments. Data-driven insights help refine the product portfolio. Individual social media accounts of founders or designers create strong brand personalities. Virtual fittings and customization attract customers. Exclusive, limited-edition drops build buzz. D2C brands focus on storytelling and representing diversity and inclusivity. The D2C model will gain further prominence, driven by entrepreneurial designers and continued consumer interest in new brands.
Retail Media Advertising Growth: Retail media advertising is an expanding marketing avenue for fashion brands. Retailers provide sponsored ad spaces on ecommerce sites/apps to promote products. Search ads, native ads, and banner ads on product pages increase visibility. Advertisers receive real-time performance data. Trust in the retailer’s ecosystem drives conversions. For retailers, ad revenues compensate lower margins and enable investments. Amazon now dominates retail media in the U.S. Other retailers, like Walmart, Target, and Kroger, are also strengthening their retail media offerings. The channel provides a measurable impact on sales along with consumer insights. Fashion brands are allocating higher media budgets to retail advertising.