E-commerce in the USA is the most robust and innovative market, fueled by its position in the world’s largest economy and the emergence of giants like Amazon and eBay. Despite trade barriers and fierce competition, the country remains one of the most attractive and competitive markets due to its status as the home to a significant immigrant population, fostering racial and ethnic multiculturalism that predisposes it to diverse tastes and consumer needs (Carrasco). E-commerce serves as a rapid marketing mechanism in local agribusinesses, showing a rising trend in the country with a positive outlook on opportunities created by the internet in marketing and acquiring new customers in rural agribusinesses. Its use continually grows among consumers, generating business expectations that can adapt to agriculture, adding value to its products and services (Calocero). Hence, agribusinesses must embrace technology as a key to the industry’s digital transformation, and there is no stopping it.
According to Euromonitor, in 2019, the global e-commerce market reached a value of $2.0 Billion, with China leading, and other major countries like the United States, Japan, South Korea, and Germany comprising 74% of the total global e-commerce (quoted in PROMPERU).
The U.S. e-commerce market, according to Euromonitor, represents a total of $511 Million with a compound annual growth rate of 15.8% over the last five years and a per capita consumption of $1.55. A staggering 79% of internet users and 70% of the total population make online purchases (quoted in PROMPERU). U.S. consumers are well-acquainted with online shopping and accustomed to fast delivery speeds. The omnichannel system of online platforms and in-store pickup has gained popularity, attracting a smaller consumer base at much lower costs, especially in suburban and rural areas. The service has proven popular, particularly among millennial parents looking to maximize their limited time, and over 50% of internet shoppers make online purchases (PROMPERU). It signifies an increase in online consumption by the American public, generating $511 Million in sales over the last five years, with the omnichannel system being more prevalent in urban areas than rural ones.
Abigail Orus, Senior Researcher at Statista, identifies Amazon, eBay, Walmart, Etsy, Home Depot, Target, Lowe’s, Best Buy, Wayfair, and Costco as the top e-commerce websites in the United States. Amazon is the most visited retail site in the U.S., dominating most e-commerce sales. eBay records over 885 million monthly visits, and Walmart is the U.S. retail giant. Etsy is a popular platform for creators, Home Depot deals in hardware and DIY distribution, Target is a department store chain dating back to the ’60s, Lowe’s distributes home improvement products, Best Buy specializes in technology and electronics, Wayfair is an online home and décor store, and Costco is a hypermarket chain selling products in bulk at lower prices (Statista). It emphasizes that Amazon, eBay, and Walmart are the most visited e-commerce websites, with Amazon being the most called and, consequently, having the highest sales records.
E-commerce in the United States has surged unprecedentedly despite the COVID-19 pandemic. Approximately 79% of internet users purchased a product or service online, generating around $810 million in revenue by the end of 2022. The compound growth of online retail sales at around 10.9% between 2023 and 2027, one of the 15 highest globally, is attributed to the satisfaction levels of U.S. consumers (Statista). It indicates that e-commerce in the United States experienced rapid growth despite the COVID-19 pandemic, generating millions of dollars in sales, with online sales being the most satisfying to American consumers. According to Daniela Carrasco, a digital journalist, in her article “E-commerce X-ray in the United States,” The U.S. Department of Commerce reports that e-commerce has gained popularity in the last decade, reaching a record $1.03 Million in sales in 2022, equivalent to approximately 950 Million euros, a year-on-year increase of 7.44% (quoted in Carrasco). It implies that e-commerce in the United States has become the most popular in the last decade, generating sales exceeding one Million dollars in 2022.
Daniela Carrasco asserts that between 2012 and 2022, annual e-commerce sales in the United States increased fivefold, with an average yearly growth rate of 16.4%, experiencing the most significant surge in 2020 due to the pandemic (Carrasco). It means that sales generated by e-commerce increased five times over the last ten years, with the most substantial increase in 2020 during the COVID-19 pandemic. Therefore, despite the COVID-19 pandemic, E-commerce’s rapid growth in the United States has generated millions of dollars in sales, satisfying American consumers and becoming the most popular business method in the last decade.
Luciano Calocero, Sales Director for VTEX (Commerce Platform for B2B & B2C), states that changes in consumer behavior caused by the pandemic and the adjustment of online purchasing channels and touchpoints have significantly accelerated the digitization of companies in the agribusiness sector (Calocero). It implies that the COVID-19 pandemic has altered consumer buying behavior, making online purchasing channels imperative and accelerating the digital transformation of agribusinesses. Calocero states that the U.S. agribusiness e-commerce market has reached $5.5 Billion since 2015, with substantial expansion in the last two years. Additionally, Forrester Research estimates that B2B e-commerce sales in the U.S. reached $1.2 Billion, accounting for 14% of total B2B sales in 2021 (quoted in Calocero).
Furthermore, Ecommerce technologies provide agronomists and food producers with increased efficiency in sales, personalization, and cost savings. A critical factor in the digital transformation of agribusinesses is shifting the entire customer purchasing cycle to the digital or hybrid environment. It includes forming farmer-to-farmer networks, cooperatives, and B2B markets for food, supplies, and equipment, establishing a direct sales channel for agricultural products, machinery, and spare parts, managing B2B2C sales through distribution channels, and deploying a sales force with business intelligence tools, among other things. For these reasons, changes in consumer behavior due to the COVID-19 pandemic have increased online consumption, with digital platforms being the most sought-after by agribusiness companies, transforming how businesses operate.
Considering the U.S. as a leader in innovation and technology and online sellers facing trade barriers and intense competition, is it not an excellent business opportunity, especially for Peruvian and Latin American companies? Despite the COVID-19 pandemic, the growth of e-commerce in the United States has generated millions of dollars in sales, making it the most popular business method in the last decade. The shift in consumer behavior has increased online consumption, creating digital platforms most required by agribusiness companies and transforming how businesses operate. The current situation facilitates the entry of agribusiness companies as an opportunity to grow and expand internationally.
REFERENCES
Calocero, Luciano. “Transformación digital y agro: hacia dónde va el comercio electrónico”. www.cronista.com, 14 de Mayo del 2022, https://www.cronista.com/columnistas/transformacion-digital-y-agro-hacia-donde-va-el-comercio-electronico/
Carrasco, Daniela. “Radiografía del eCommerce en Estados Unidos: así es el mercado online más potente de Occidente”. , ww.marketing4ecommerce.net ,24 de Marzo 2023, https://marketing4ecommerce.net/radiografia-del-ecommerce-en-eeuu-asi-es-el-mercado-online-mas-potente-de-occidente/
Orus, Abigail. “Comercio electrónico en Estados Unidos – Datos estadísticos”. es.statista.com, 31 de Diciembre del 2023, https://es.statista.com/temas/9717/comercio-electronico-en-estados-unidos/#topicOverview
PROMPERU. Perfil de E-Commerce. www.recursos.exportemos.pe https://recursos.exportemos.pe/boletin/ecommerce-estadosunidos-agronegocios-perfil-mercado-2021.pdf
ABOUT THE AUTHOR
Luis Henry Contreras Del Aguila
Food Industries Engineer Universidad Nacional Agraria de la Selva- Tingo Maria- Peru
Master in Agribusiness Administration ESAN University – Lima-Peru
Country Agribusiness CEO