From $4.4 trillion last year, the global online shopping market is expected to rise to $6.8 trillion by 2028, predicts a new study by Forrester.

Jitender Miglani, Principal Forecast Analyst, Forrester explains, the pandemic accelerated e-commerce growth as store closed and social distancing prevailed. However, in recent years with most stores reopening, there has been a reversal to physical shopping.

To regain momentum, e-commerce operators plan to launch new initiatives like shopping offers and generative AI projects. A survey by Nvidia in January indicates, around 98 per cent of retailers plan to invest in these technologies over the next 18 months.

Besides, other factors like maturation of online marketplaces, social commerce, livestream selling, direct-to-consumer commerce, expanding internet access and innovative payment solutions, are also likely to boost e-commerce growth, emphasises Miglani. The US e-commerce market alone is projected to rise from $1 trillion in 2023 to $1.6 trillion by 2028, accounting for 28 per cent of all retail sales in the market

The analysis by Forrester further suggests, overall global retail sales will reach $28.7 trillion by 2028. The study notes, physical shopping is proving resilient despite challenges faced by brick-and-mortar retailers including store closures by retail chains like Express, Rue21, and Macy’s.

Hence, physical shopping will continue to dominate in the near term with 76 per cent of the $28.7 trillion global retail sales occurring offline, projects the study

A report of Coresight Research points out, store openings in the US have outpaced store closures since the end of COVID-19 pandemic. Store chains in the country have been on a net opening front since the end of the pandemic, adds Bryan Gildenberg, Analyst.