E-commerce grew 30%, and these products were the hottest selling in the United States in 2020

U.S. e-commerce grew 30% in 2020, the fastest growth rate since 2002, according to an emailed report from Forrester.

While much of 2020 online spending was driven by concerns about the coronavirus pandemic, many analysts expect much of last year’s growth to remain as many consumers become more comfortable buying online, including in categories such as food and household that remain relatively underpenetrated.

Last year's best-performing categories were closely related to the quarantine and school closures. According to Forrester data, in 2020, videos and DVDs grew by 21.4%, toys grew by 15.9%, video games grew by 15.4%, computers and peripherals grew by more than 15%, tools and home improvement products grew by 13.2%, pet products grew by 13.2%, and books and sports equipment each accounted for about 12%. In each of the above cases, the growth rate in 2020 was significantly higher than the growth rate in 2019.

Among them, the fastest-growing e-commerce category in 2020 was food and beverage, with online sales at platforms like Walmart, Target, and Kroger nearly doubling combined. Forrester predicts that by 2024, 10% of all food and beverage sales will be sold online.

Despite a decline in overall apparel and footwear spending in 2020, apparel, accessories, and footwear combined accounted for 19% of U.S. e-commerce sales growth. Forrester projects that digital sales in the apparel category will reach 47.5% by 2024.

Online marketplaces, such as Amazon’s massive third-party platform, also help drive e-commerce sales. Forrester estimates that marketplaces drove 10% of total U.S. retail sales and 57% of e-commerce sales in 2020. If trends continue, marketplaces will account for more than two-thirds of e-commerce by 2023, according to Forrester. The firm also noted that Shopify has captured 9% of U.S. e-commerce by helping direct-to-consumer brands.

Still, Forrester’s project reflects the enduring relevance of physical stores to retail. The firm estimates that nearly three-quarters of retail sales will take place offline, and 66% of non-food and beverage sales will take place offline. “Categories that require shoppers to touch and feel, require in-store advice, or are unplanned, small-ticket purchases are more likely to be purchased in-store,” the report’s authors note.

Today, retailers are investing heavily in integrating their digital platforms with their store networks to allow consumers to easily shop in the way that’s most convenient for them. The growth of e-commerce and omnichannel sales has added new costs and difficulties for retailers. But those retailers that can offer customers the best of both the digital and physical shopping worlds are poised to continue growing.

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