What: Global online retail sales are projected to increase from $4.4 trillion in 2023 to $6.8 trillion by 2028, with U.S. online sales growing from $1 trillion to $1.6 trillion during the same period, according to a report by Forrester.

Why it is important: The significant growth in online retail sales underscores the ongoing shift towards e-commerce, driven by the expansion of digital marketplaces, social commerce, and innovative shopping solutions.

A Forrester report projects that global online retail sales will grow at an 8.9% compound annual growth rate, reaching $6.8 trillion by 2028, up from $4.4 trillion in 2023. In the U.S., online sales are expected to rise from $1 trillion to $1.6 trillion, accounting for 28% of total domestic retail sales. China and the U.S. together constitute about two-thirds of global e-commerce volume. Despite the rise in online sales, physical stores will continue to dominate, contributing 76% of total global sales, amounting to $21.9 trillion by 2028. The growth in online sales is driven by marketplaces, social commerce, online grocery buying, BOPIS, quick commerce, livestream selling, and DTC models. The integration of online and offline retail, through hybrid business models, is crucial for modern retail growth, as it offers a seamless customer experience and meets consumer expectations for flexibility and convenience.

Global online retail sales to hit USD 6.8 trillion by 2028