Nonstore retailers
Total Sector Spending
Overall spending trends across an industry sector
What's the story behind the data?
E-commerce is the only retail growth story that matters. Nonstore (primarily Amazon and digital-first retailers) posted consistent mid-to-high single-digit growth through 2025: December peaked at +12.9%, April hit +11.9%, and even the weakest months (February -2.2%, May +0.2%) barely dipped. September ended at +7.5%. This isn’t a channel—it’s the future. Physical retail is legacy infrastructure; digital is the default.
Amazon dominates but share data unavailable in this view. The category aggregates pure-play e-commerce across all product types. The digital shift is permanent: convenience, selection, price transparency, and delivery speed make physical retail visits increasingly optional for most purchases.
High earners ($150K+ at +11%) drive the category alongside Gen X (+9.7%) and Gen Z (+8.9%). Millennials surprisingly modest at +4.6%. All income brackets positive—even under $50K at +8.4%—proving digital shopping spans economic strata. The smartphone is the great equalizer: everyone shops online regardless of income.
Implications by Audience
FP&A / Strategy Teams
- E-commerce is structural, not cyclical — December +12.9%, February -2.2%, April +11.9%, September +7.5%. Even “weak” months barely negative. Digital shopping is baseline consumer behavior, not a pandemic fluke that reverts.
- High earners ($150K+ at +11%) lead adoption — affluent households prioritize convenience and value time over in-store browsing. Amazon Prime, same-day delivery, and frictionless returns serve this segment perfectly.
- Gen X (+9.7%) drives volume — ages 40-55 with families shopping online for household essentials, kids’ needs, and bulk purchases. They’re digitally fluent and time-starved. E-commerce solves both.
- Gen Z (+8.9%) is digital-native — ages 18-27 never developed physical retail habits. They discover, research, and purchase online first. TikTok/Instagram shopping integration accelerates this further.
- All income brackets positive — under $50K at +8.4%, $100-125K at +5.6%, $150K+ at +11%. Smartphones make e-commerce accessible regardless of income. Price comparison tools benefit budget-conscious shoppers.
- Physical retail must justify the trip — showrooming, experience, immediate gratification, or service are only reasons to visit stores. Commodity purchases (electronics, apparel, home goods) migrated permanently online.
Marketing and Brand Teams
- Amazon is default shopping destination — if your brand isn’t winning on Amazon (search rank, reviews, Prime eligibility), you’re invisible to growing portion of consumers. Amazon SEO and advertising are table stakes, not optional.
- Target high earners ($150K+ at +11%) with premium digital experiences — fast shipping, white-glove delivery, easy returns, and premium packaging justify higher prices. Convenience is the ultimate luxury.
- Gen X (+9.7%) shops online out of necessity — time-starved families need convenience. One-click reordering, subscription auto-ship, and curated recommendations reduce friction. Make shopping effortless, not entertaining.
- Gen Z (+8.9%) discovers products socially — TikTok Shop, Instagram Shopping, and influencer partnerships drive purchases. Traditional e-commerce UX (browse → search → buy) being replaced by social discovery → impulse buy.
- Mobile-first is non-negotiable — smartphones are primary shopping device across all demographics. Desktop-optimized experiences lose conversions. Apps with saved payments and push notifications drive repeat purchases.
Investors
- Amazon is the e-commerce winner — pure-play dominance with logistics moat, Prime loyalty, and marketplace ecosystem. Competing requires Amazon-level fulfillment infrastructure or niche differentiation.
- Physical retailers with weak digital — facing structural decline. If your store-based retailer doesn’t have seamless omnichannel (Target’s same-day delivery, Walmart’s pickup), it’s losing share to Amazon monthly.
- High-income spending ($150K+ at +11%) supports premium e-commerce — direct-to-consumer brands with quality positioning and fast delivery capture affluent digital shoppers. Luxury e-commerce growing faster than luxury stores.
- Gen X momentum (+9.7%) sustains growth — peak household-buying years shifting online permanently. As long as Gen X has families and income, e-commerce spending grows.
- Category resilience (only -2.2% worst month) — digital shopping doesn’t crater like physical retail during uncertainty. Baseline consumer behavior is now online-first.
Policy Makers
- E-commerce dominance creates retail job displacement — store closures accelerate as digital share grows. Retail employment (cashiers, sales associates) declining while warehouse/logistics jobs grow. Different skill sets, different locations.
- Small business access challenges — competing on Amazon requires advertising spend, fulfillment infrastructure, and inventory management most small retailers can’t afford. Platform dominance concentrates power.
- Sales tax collection — e-commerce makes tax collection complex across jurisdictions. States lose revenue when physical retail declines and online sales cross borders.
- Last-mile delivery environmental impact — surge in individual shipments vs. consolidated store inventory delivery changes emissions profile. Sustainability implications of e-commerce growth.
Top Brands by Market Share
Leading brands ranked by market share within sector
Trends + Insights
E-commerce is permanent baseline behavior December +12.9%, April +11.9%, September +7.5%. Even weakest month (February -2.2%) barely negative. Physical retail is optional; digital is default. Pandemic accelerated shift that was already inevitable.
High earners ($150K+ at +11%) value convenience over experiences Affluent households prioritize time savings over in-store browsing. Amazon Prime, same-day delivery, and white-glove service make online shopping premium experience. Convenience is the ultimate luxury good.
Gen X (+9.7%) shops online out of necessity Ages 40-55 with families, jobs, and packed schedules can’t spend hours browsing stores. E-commerce solves time poverty. One-click reordering and subscription auto-ship make household management frictionless.
Gen Z (+8.9%) is digital-native shopper Ages 18-27 never developed physical retail habits. They discover products on TikTok/Instagram, research on YouTube, purchase on mobile. Social commerce integration (TikTok Shop) accelerates this further.
All income brackets shop online Under $50K at +8.4%, $100-125K at +5.6%, $150K+ at +11%. Smartphones democratize e-commerce access. Price comparison tools and deal aggregators benefit budget-conscious shoppers as much as affluent.
Physical retail must justify the trip Showrooming (touch products before buying online), immediate gratification (need it today), or experience (Apple Store Genius Bar) are only reasons to visit stores. Commodity purchases migrated online permanently.
Amazon is the default Category dominated by pure-play e-commerce led by Amazon. Marketplace ecosystem, Prime loyalty, and logistics moat make Amazon the starting point for product search. Google is for information; Amazon is for shopping.
Mobile-first shopping is standard Smartphones are primary shopping device across all demographics. Apps with saved payments, push notifications, and one-click buying drive repeat purchases. Desktop e-commerce is legacy.
Millennials (+4.6%) surprisingly modest Lower than Gen X (+9.7%) and Gen Z (+8.9%) despite reputation as digital-first generation. Ages 28-43 facing budget constraints (housing, student loans, kids) may be trading down or delaying purchases, even online.
Top Brands by AOV
Leading brands ranked by average order value within sector
This macro sector analysis provides detailed insights into economic trends and consumer behavior patterns. The visualizations below are derived from real-world transaction data and economic indicators.
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Sector Spending by Income Bracket
Industry sector spending patterns by household income level
Sector Spending by Generation
Industry sector spending patterns by generational cohort
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