Top E-commerce Categories in the USA You Should Focus On Omer Riaz August 26, 2022

Top E-commerce Categories in the USA You Should Focus On

ecommerce categories list

Before discussing top e-commerce categories in the USA, let’s discuss how you can select your e-commerce business model. 

The E-commerce industry boomed out in the past few years. In 2017 the prediction of Nasdaq highlighted that e-commerce will account for 95 percent of global purchases in 2040. The emergence of COVID-19 has already brought us close to this prediction. 

Shopping trends do vary from state to state, but e-commerce provides you the opportunity to shop globally with ease. The movement of e-commerce promises the success of online businesses, especially if you enter the top e-commerce categories. 

Top E-commerce Categories in the USA

 

E-commerce Business Model Selection 

There are multiple e-commerce business models that you can choose to start your business journey—deciding which one to choose is difficult and tricky. Below are some points that will enable you to make effective decisions regarding the e-commerce business. 

What is your selling product?

Within the e-commerce market, you can sell anything. The only thing you have to do is to find the product. Before entering the e-commerce ecosystem, you must analyze what you want to sell. 

Let’s say you have a product in your mind that you want to sell online. You need to examine its market demand and future outlook. You can look into top e-commerce categories and see whether your chosen product is lying within these categories. 

Everything sells in the e-commerce industry; you have to choose appropriate marketing and brand growth strategies to foster the success rate. 

  • Physical Products 

The most commonly sold commodity on e-commerce is physical goods. These goods include car parts, fashion products, gadgets, and many more. Physical goods are the highest selling goods in e-commerce stores. 

If you have any physical product in your mind, then the e-commerce market has a lot of potentials to sell your products. 

  • Digital Goods 

The world is moving towards digitalization, and now consumers want everything to be available for selling and purchasing through mobile phones and other technological devices. 

A few years back, selling a digital product like eBooks or web designs wasn’t an easy task. However, with the increase in e-commerce awareness and change in consumer behavior, it’s not a big deal to sell digital products online. So, if you have any digital product in your mind, you can quickly sell it within the e-commerce ecosystem. 

  • Services 

Another massive achievement in the top e-commerce categories in the USA space is you can sell services online. In previous years, service selling has occurred through newspaper ads, word of mouth, etc. Now companies can create their website and market themselves. 

Furthermore, the popularity of leading marketplaces like Facebook, Etsy, Amazon, and others has made marketing your services easy through advertisements. You have to find the group looking for the services that you are offering. 

Who is Your customer?

Understanding your customers is the pillar of your business. So who are the customers you want to serve? 

Consider the expectation of customers regarding your product. You are more likely to succeed if you know consumer behavior. Research your competitor’s social media pages and examine how customers respond to their products and the improvement they want in the product you sell. 

Innovate your product accordingly to customers’ expectations and enjoy long-term business success. 

What is your capability?

Numerous competitors in the market are already selling a product like yours. If you do not come up with something unique and productive, it will take a long time to develop your brand strength. 

Break your limitations and come up with unique ideas. It will help you to succeed in both the short and long run. 

What is suitable for your product?

 Analyze your product potential and decide which business model to practice. For instance, if you are producing your products (manufacturer), you may want to consider product wholesaling or subscriptions to generate revenues and cover operational costs. 

If you are a distributor of products to people who may want to invest in marketing to expand your customer base. 

Now let’s look at the top e-commerce categories you should focus on. 

Top E-commerce Categories in the USA

The above figure shows the fastest growing top e-commerce categories in the USA and worldwide regarding revenues. In 2022, consumers are forecast to spend around 1.01 trillion US dollars on electronics. That stands at approximately 24.3 percent of the total expected e-commerce revenue globally. Therefore, you can interpret it as one in every four dollars is spent on the purchase of electronics by consumers. 

Electronics represent a significant portion of worldwide e-commerce sales, with a 5 percent increase yearly. However, the growth rate is relatively low compared to pre-Covid-19 timelines. 

The second most popular online e-commerce category is fashion which is expected to generate $990 billion in sales worldwide. Together with electronics, sales in these two categories are more likely to reach $2 trillion in 2022. 

The third most popular category in online shopping is Toys, hobbies, and DIY in 2022, and their sales are expected to reach $570 billion. And other two popular categories include furniture ($500 billion) and beauty and household ($420 billion.)

If we look into the top e-commerce categories in the USA, fashion is ranked first. US consumers are more likely to spend $205 billion on products related to fashion in 2022, which constitutes 22.6 percent of the total US e-commerce revenue. 

However, the growth rate in 2022 is relatively low for fashion-related products, which is 13.6 percent. The growth rate in 2020 was around 24.7 percent, and 25.2 percent in 2019. 

In the US, expenditure on fashion-related products is expected to rise to $232 billion in 2023 and $262 billion in 2024. Other popular categories in the US include electronics, furniture, toys, and others. 

If your selected product lies within these categories that you want to sell, you can look into their demand and market.  If you have chosen any product related to the fashion industry, it showcases the promising future in the e-commerce space within the US. 

Conclusion 

The e-commerce market has witnessed a significant boom in the modern world, and its popularity is expanding yearly. However, if you want to launch a brand within the e-commerce space, then it’s essential to know about the selection of the e-commerce business model. 

This article presents the top e-commerce categories worldwide and within the US. You can select any of these popular e-commerce categories and launch your product. However, don’t forget to develop a productive and innovative plan to make your business successful. 

FAQs

Which categories are most successful in e-commerce?

  • Electronics 
  • Fashion 
  • Toys, hobbies, and DIY 
  • Furniture 
  • Beauty, health, personal care 

What are the three top e-commerce categories in the USA?

  • B2B (Business to Business)
  • B2C (Business to Consumer)
  • C2C (Consumer to Consumer)