According to recent projections, global e-commerce sales are expected to reach approximately $6.88 trillion by the end of 2025. The number of online stores has surged to 28 million active businesses, representing a 27% increase from pre-pandemic levels. E-commerce is projected to account for 21% of retail sales worldwide in 2025, with expectations to reach 22.6% by 2027.
This report examines the current e-commerce landscape, regional market distribution, and what these shifts mean for both established players and new entrants navigating the increasingly competitive digital marketplace in 2025.
Key Takeaways from this Post
The global e-commerce market has reached an unprecedented valuation in 2025, with 28 million active online businesses.
Distribution by Revenue Tier: E-commerce is dominated by small businesses (70% generating less than $1M annually).
Regional Dominance: 80% of global e-commerce sales come from just three regions - China (52%), the United States (16%), and Western Europe (12%).
Top Statistics:
To better understand the implications of the current state of e-commerce, we need to examine the underlying figures.
30.7 Million E-commerce Sites Worldwide (2025)
*Up from 24M in 2022 → 27M in 2023 → 30.7M in 2025
While the pandemic accelerated digital adoption, the sustained growth of e-commerce is primarily driven by evolving consumer behavior and the widespread availability of accessible selling platforms such as Shopify, Etsy, and Amazon FBA. This environment has significantly lowered the barriers to market entry, leading to a proliferation of online businesses ranging from individual entrepreneurs to large-scale retail operations.
Differentiation now depends on operational efficiency, customer experience, and strategic automation. Businesses that streamline back-office functions and leverage tools like Link My Books are better positioned to scale sustainably and maintain a competitive advantage in a saturated landscape.
Over 28 Million E-commerce Stores Operating Globally
It is important to distinguish between the total number of e-commerce websites and those that are actively conducting business. The figure for active e-commerce stores represents businesses with ongoing transactional activity. These range from small, single-channel sellers to larger enterprises operating across multiple platforms such as Amazon, Shopify, and TikTok Shop.
Businesses that approach e-commerce with structured financial oversight, monitoring margins, automating accounting processes, and maintaining clear visibility over cash flow, are better positioned for long-term growth.
$6.8 Trillion in Global E-commerce Sales (2025)
*That’s 21% of all global retail sales
Digitally native e-commerce brands continue to gain market share by leveraging data-driven decision-making, automation, and efficient global logistics infrastructure.
While the projected $6.8 trillion global e-commerce market presents significant opportunities, it also introduces operational complexity. Success in this environment requires a shift from ad hoc decision-making to optimized, data-informed processes.
3+ Billion Digital Buyers Worldwide
According to eMarketer's 2025 forecast, the number of global digital buyers is expected to exceed 3 billion, representing approximately 38% of the world’s population engaging in online purchasing. E-commerce has become a mainstream channel across diverse demographics, extending beyond urban centers to include rural and mobile-first consumers.
This expansion is no longer concentrated in Western markets. Growth is increasingly driven by buyers in regions such as India, Latin America, and Southeast Asia, markets that introduce additional complexity related to taxation, currency conversion, and cross-border logistics.
E-commerce = 20.5% of Global Retail Sales in 2025
*Set to hit 22.5% by 2028
E-commerce now represents nearly 25% of global retail sales, marking its transition from an alternative channel to a core component of the retail ecosystem. The upward trend is expected to continue, with brick-and-mortar locations increasingly functioning as fulfillment centers or experiential showrooms rather than primary sales environments.
As retail evolves toward an omnichannel standard, operational complexity increases significantly.
Platforms such as Link My Books, which offer multi-channel data synchronization and automated reconciliation, play a key role in enabling financial accuracy and compliance in a hybrid retail environment.
US Mobile Commerce = $710 Billion in 2025
*4x growth since 2019
Mobile commerce continues to gain significant traction, with a growing proportion of consumers completing transactions via smartphones and app-based platforms. Channels such as TikTok Shop, Instagram Shopping, and branded mobile applications are emerging as primary drivers of e-commerce activity, particularly among younger demographics.
80% of Global E-commerce Sales Come from China, the US, and Western Europe
Global e-commerce remains highly concentrated, with three regions accounting for the majority of total sales. In 2025, China is projected to represent approximately 52% of global e-commerce volume, driven by mobile-first adoption and the prevalence of integrated super apps. The United States and Western Europe account for 16% and 12%, respectively, reflecting platform-centric ecosystems led by Amazon, Shopify, and other established marketplaces, coupled with more stringent regulatory environments.
- China: ~52%
- United States: ~16%
- Western Europe (combined): ~12%
- Rest of World: ~20%
Operating across borders presents significant challenges, particularly around compliance. Businesses must navigate complex differences in VAT systems, settlement structures, and platform fee models.
E-commerce Businesses by Category
Each e-commerce business model introduces distinct financial and operational complexities, particularly in relation to accounting, tax treatment, and reconciliation workflows:
- Subscription-based businesses require accurate recognition of recurring revenue and deferred income.
- Print-on-demand sellers must account for third-party fulfillment costs, transaction-level fees, and frequent refund scenarios.
- Resale and thrift models necessitate detailed tracking of cost of goods sold (COGS) and appropriate VAT treatment for secondhand inventory.
To maintain accuracy, sellers must adopt tools that accommodate these nuances. Link My Books supports a wide range of business models through features such as custom tax mapping, product grouping, and automated categorization, ensuring compliant and scalable financial reporting across transaction types.
Emerging Niche Categories (2025)
Beyond the established categories, several high-growth niches are emerging as standalone verticals with dedicated ecosystems of suppliers, platforms, and consumer bases. These specialized markets often command premium pricing and higher customer loyalty.
These emerging niches represent significant opportunities for specialized sellers. For e-commerce businesses operating in these specialized verticals, accurate financial tracking across multiple platforms becomes even more critical, as many operate through a combination of direct sales, marketplaces, and subscription models.
Ecommerce Businesses by Revenue
Ecommerce businesses can be broadly categorized into three revenue tiers, each with distinct operational characteristics and financial requirements:
- Under $1M Annual Revenue: This segment comprises approximately 70% of e-commerce businesses. Entities in this tier typically include solo operators, print-on-demand sellers, dropshipping ventures, and handmade or niche marketplace stores (e.g., Etsy, Amazon side hustlers). These businesses generally prioritize low-overhead operations, basic fulfillment solutions, and automated bookkeeping tools to manage inventory and tax compliance efficiently.
- $1M–$10M Annual Revenue: Representing an estimated 25% of the market, this tier includes growth-stage direct-to-consumer (DTC) brands often scaling through paid advertising channels (e.g., Facebook Ads), Amazon FBA, and influencer-driven marketing strategies. Financial operations at this stage typically require more sophisticated accounting systems, inventory tracking, and multi-channel reporting to support growth.
- Over $10M Annual Revenue: Roughly 5% of e-commerce businesses fall into this high-revenue category. This group includes marketplace aggregators (e.g., Thrasio), VC- or PE-backed brands, and Shopify Plus merchants operating with advanced warehousing, logistics infrastructure, and international distribution networks. These businesses require robust financial oversight, consolidated cross-border accounting, and scalable ERP integrations.
U.S. E-commerce Platform Market Share
As of 2025, Amazon continues to dominate the U.S. e-commerce space, holding 37.6% of total online market share by gross merchandise value (GMV). Walmart ranks second at 6.4%, followed by Apple (3.6%), eBay (3.0%), and Target (1.9%). All remaining platforms, including Shopify, TikTok Shop, WooCommerce, BigCommerce, and others, collectively account for 47.5% of the market.
This distribution underscores a highly consolidated market at the top, with Amazon representing nearly two-fifths of all e-commerce volume. For mid-market sellers and multi-platform operators, the fragmented 47.5% “Other” category presents both opportunity and complexity, requiring robust reconciliation, tax compliance, and reporting tools such as Link My Books to operate efficiently across diverse platforms.
Final Words
The continued expansion of e-commerce in 2025 reflects a dynamic and accessible market, but participation alone does not guarantee profitability. Sellers are contending with tightening margins, rising platform fees, and increasingly complex regulatory environments.
To remain competitive and scale effectively, businesses must adopt a lean and fully integrated technology infrastructure. Manual processes and fragmented systems are no longer sustainable.
Link My Books provides a comprehensive automation solution, serving as a virtual CFO by streamlining reconciliation, automating tax categorization, and synchronizing financial data across sales platforms. This enables sellers to focus on strategic growth, rather than backend administration.
Start a free trial to see how it can transform your business.
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