Resilience of Online Shopping: A Significant Trend
Earlier this year, PYMNTS Intelligence elucidated that the in-store shopping experience is by no means obsolete. Nonetheless, when delving into online purchasing behavior, it became evident that consumers exhibited a proclivity for spending more when acquiring items via digital channels. Notably, critical segments of discretionary spending have markedly shifted towards online merchants.
The data revealed that individuals engaging in online shopping were significantly predisposed to purchase hobby items (76% more likely), electronics (61% more likely), and sporting goods (also 61% more likely) compared to their in-store counterparts.
Recent statistics from the government, released on August 19, affirm a tenacity in online shopping growth. This expansion outpaces overall retail sales growth, highlighting a remarkable trend.
As indicated by the U.S. Census Bureau, retail e-commerce sales for the second quarter of 2025 reached a substantial $304.2 billion, adjusted for seasonal fluctuations. This reflects a 1.4% increase from Q1 2025 and an impressive 5.3% year-over-year (YoY) growth compared to Q2 2024.
Total retail sales amounted to $1,865.4 billion in Q2 2025, demonstrating a modest 0.4% increase quarter-over-quarter and a 3.9% YoY rise. Consequently, e-commerce constituted 16.3% of total retail sales, slightly exceeding the 16.1% figure recorded one year prior.
Sector-Specific Insights
The evolution of e-commerce in Q2 2025 varied across distinct sectors. Sales of motor vehicles and parts online surged to $17.2 billion, marking an 8.3% increase from Q1 2025 and a notable 15.9% YoY escalation. This signals a persistent adaptation to digital platforms within this traditionally offline domain.
Meanwhile, the segments of furniture, building materials, and electronics sustained robust momentum, with eCommerce sales hitting $30.1 billion—a quarterly increase of 8.7%, and an 8.1% rise compared to Q2 2024, extending the vigorous growth identified previously this year.
The clothing and general merchandise sector emerged as the leading contributor, recording $53.8 billion in eCommerce sales, which represented an 8.6% increase from Q1 and an 11.2% YoY uptick.
Within this category, general merchandise spearheaded most of the enhancements, whereas online clothing and accessories experienced a more subdued quarterly growth of 9.2% but a slight YoY decline of -1.3%, indicating a slowdown relative to earlier quarters.
In another significant development, building materials and garden supplies noted a dramatic online sales increase of 34.7% compared to Q1; however, the YoY growth moderated to 9.9%, contrasting with Q1 2025 when furniture and electronics led the sector’s expansion.
Payment Method Preferences
PYMNTS Intelligence reporting has illustrated a pronounced bifurcation in the preferred payment methods associated with online and in-store transactions. For online retail purchases, consumers are 27% more inclined to utilize credit cards rather than debit cards. Conversely, within physical retail environments, the preference for debit cards surges to 50% over credit cards.
Additionally, consumers are twice as likely to employ digital wallets for online retail transactions (16%) in comparison to in-store purchases (8%).
Future Outlook
The trends observed in the second quarter are poised to persist into the current period. Recent retail sales data, covering July, indicates a 0.5% increase compared to June, which itself was revised upward to reflect a 0.9% gain from a previous 0.6% advancement. Notably, Amazon extended Prime Day to span four days instead of the conventional two.
During this promotional period, PYMNTS Intelligence noted that 52% of all adult American consumers capitalized on the occasion to purchase items, marking a record high, with an average expenditure of $360, reflecting a 10% increase from the preceding two-day sale.
In a parallel move, Walmart initiated a six-day sales event in the same timeframe. Shoppers participating in Walmart+ Week averaged expenditures of $484, signifying nearly an 11% rise. In July, non-store retail sales—inclusive of, but not limited to, eCommerce—rose by 0.8%, outpacing the overall monthly sales growth.
Source link: Pymnts.com.
