Retail Ecommerce Growth in the U.S. Sees Slowdown in Q1 2025
New data from the Department of Commerce reveals that retail ecommerce growth in the United States lagged behind brick-and-mortar sales in the first quarter of this year. Total retail sales, including online and in-store transactions, reached $1.86 trillion in Q1 2025, reflecting a modest 0.4% increase from the previous quarter. However, online sales actually declined by 0.04% to $300.2 billion during the same period.
According to the Department of Commerce, ecommerce sales encompass transactions for goods and services where the buyer places an order or negotiates the price and terms of the sale through various online platforms such as the internet, mobile devices, electronic data interchange networks, or email. Payment for these transactions may or may not be made online.
Despite the challenges faced by the ecommerce sector, it still accounted for 16.2% of total retail sales in Q1 2025, maintaining its share from the previous quarter.
Key Findings:
- In Q1 2025, U.S. retail ecommerce sales grew by 6.1% compared to the same quarter in 2024.
- Total retail sales saw a 4.5% annual increase over the same period.
While ecommerce growth may have slowed down in the first quarter of 2025, it remains a significant contributor to the overall retail landscape in the United States. As consumer behaviors and shopping preferences continue to evolve, it will be essential for online retailers to adapt and innovate in order to stay competitive in the market.