Market Growth
The online fashion market in the U.S. saw a significant revenue surge during the pandemic, continuing to expand in the subsequent years.
Walmart and Amazon Lead the Pack: Among the top online retailers, walmart.com and amazon.com hold the leading positions. The controversial pure-play online fashion retailer Shein ranks third.
Generalist Retailers Thrive: Two of the top five stores are established brick-and-mortar hypermarkets with a robust online presence. Discover the successful strategies driving U.S. online fashion.
Fashion accounts for over 21% of eCommerce sales in the United States, making it the bestselling product category in U.S. eCommerce.
Learn about market revenues, top store performances, and strategies for success.
U.S. Online Fashion Revenues Grow Steadily
Here's a broader look at revenues in the U.S. online fashion market:
Online fashion net sales jumped during the pandemic, growing from US$121.8 billion in 2019 to US$194.3 billion in 2021, with a CAGR (2019-2022) of 26%. This indicates an annual market growth of more than a quarter of its initial value.
Post-pandemic, while physical shopping resumed, eCommerce growth slowed but remained positive. Revenues slightly increased to US$206 billion in 2022 and US$214.6 billion in 2023.
Projections indicate growth acceleration, with an anticipated CAGR (2022-2028) of 5% up to 2028.
U.S. Fashion Market: Top 5 Stores
The ECDB Market Page for the U.S. online fashion market ranks the top 5 eCommerce stores as follows:
1. Walmart
Walmart generated US$12.3 billion in online fashion revenues in the U.S. The retailer integrates modern features such as live shopping, emphasizing the importance of adapting to consumer preferences and market trends.
2. Amazon
Amazon’s U.S. eCommerce fashion revenues were US$8.6 billion in 2022. Although Shein closed the gap in 2023, Amazon's innovative collaborations and recalibrations aim to strengthen its position.
3. Shein
In 2023, Shein generated US$8.1 billion in U.S. fashion revenues. Its fast fashion model, characterized by rapid production cycles and low costs, drives its popularity among younger consumers despite growing criticism over labor practices and copyright issues.
4. Macy's
Macy’s ranked fourth in the U.S. online fashion market by 2023, with US$6.4 billion in revenues. While growth has stagnated, Macy's maintains a solid presence through its omnichannel strategy.
5. Nike
Nike, primarily operating in the U.S., generated US$4.5 billion in online fashion net sales in 2023. Projections indicate continued growth, positioning Nike favorably against competitors like Adidas.
Closing Thoughts: U.S. Online Fashion
Three out of the five top online stores in U.S. fashion are generalist retailers, highlighting the high value U.S. online shoppers place on convenience and one-stop shopping.
Incumbents are wary of Shein, the ultra-fast fashion store that ranked third in 2023 and is expected to surpass Amazon's fashion segment by 2024. Shein's rapid rise reflects the importance of trend-led product assortments and effective marketing, particularly among younger consumers drawn to low prices and social media engagement.