America’s Online Shopping Revolution

When 13-year-old Nora Miller needs to buy something, she doesn’t head to a store.

“I feel like shopping online is so much quicker,” says the eighth-grader from Stow, Massachusetts. “You just press a button and you can see all the options. You can browse for all the time you want.”

The introduction of the e-commerce company Amazon 30 years ago helped make that possible. Amazon’s success sparked the growth of an entire e-commerce industry. And that has transformed the way we shop. About 20 percent of all retail sales now happen online—with more than $6.3 trillion in global sales predicted for this year alone. That is according to eMarketer, a market research company that tracks shopping trends. 

“Amazon has radically changed the shopping experience,” says Barbara Kahn, a professor at the Wharton School of Business in Philadelphia, Pennsylvania. “[It is] responsible for the total acceptance these days of online shopping.”

When 13-year-old Nora Miller needs to buy something, she does not go to a store.

“I feel like shopping online is so much quicker,” says the eighth-grader. Nora is from Stow, Massachusetts. “You just press a button and you can see all the options. You can browse for all the time you want.”

The arrival of the e-commerce company Amazon 30 years ago helped make that possible. Amazon’s success set off the growth of an entire e-commerce industry. And that has changed the way we shop. About 20 percent of all retail sales now happen online. Worldwide sale of more than $6.3 trillion are expected for this year alone. That is according to eMarketer, a market research company that tracks shopping trends.

“Amazon has radically changed the shopping experience,” says Barbara Kahn. She is a professor at the Wharton School of Business in Philadelphia, Pennsylvania. “[It is] responsible for the total acceptance these days of online shopping.”

Back in 1994, when Jeff Bezos founded Amazon, it was a lot harder to buy stuff. Sometimes you had to try several stores. There were often lines at checkout. And if a store was closed or didn’t have what you needed, you were out of luck.

Bezos started Amazon as an online bookstore. But he had a much bigger vision for its future: to make it the “everything store.” In 1998, Amazon started offering other kinds of products. 

By 2000, the company reported about $2.7 billion in annual sales. Its success and the success of other e-commerce sites like eBay inspired more online stores to open.

A major part of online shopping’s appeal was—and still is—convenience, says Praveen Kopalle. He is a marketing professor at the Tuck School of Business in Hanover, New Hampshire. “You can shop from anywhere,” Kopalle explains. E-commerce also offers flexibility, he adds. “When you walk into a store, you’re locked into the prices you see, but online you can compare prices and go for the best value.”

Over the years, Amazon and other online retailers have added features to attract more customers. Many let shoppers leave public reviews and ratings. Instead of talking with a salesperson in a store, you can read hundreds of opinions from other online shoppers. Internet retailers have also sped up delivery. Items that you order online can arrive on your doorstep in a day or two—or sometimes even within hours. 

Jeff Bezos founded Amazon in 1994. Back then, it was much harder to buy stuff. Sometimes you had to try several stores. There were often lines at checkout. And if a store was closed or did not have what you needed, you were out of luck.

Bezos started Amazon as an online bookstore. But he had a much bigger vision for its future. He wanted to make it the “everything store.” In 1998, Amazon started offering other kinds of products.

By 2000, the company reported about $2.7 billion in annual sales. Its success and the success of other e-commerce sites like eBay inspired more online stores to open.

A big part of online shopping’s appeal was convenience. And it still is, says Praveen Kopalle. He is a marketing professor at the Tuck School of Business in Hanover, New Hampshire. “You can shop from anywhere,” Kopalle explains. E-commerce also offers flexibility, he adds. “When you walk into a store, you’re locked into the prices you see, but online you can compare prices and go for the best value.”

Over the years, Amazon and other online retailers have added features to pull in more customers. Many let shoppers leave public reviews and ratings. Instead of talking with a salesperson in a store, you can read hundreds of opinions from other online shoppers. Internet retailers have also made delivery faster. Items that you order online can reach your doorstep in a day or two. Sometimes they even arrive within hours.

The rise of online shopping isn’t without drawbacks. The growth of e-commerce has made it harder for some in-person stores to succeed. In the past decade, Sears, Toys “R” Us, and several other large retailers have closed their physical stores. And this year alone, more than 3,200 storefronts have closed in the United States. That is according to CoreSite, a company that tracks retail and technology data. 

Some people also worry about e-commerce’s environmental impact. The data centers needed to process online orders use vast amounts of energy. And millions of trees are cut down to make all those boxes that arrive on our doorsteps daily.

The rise of online shopping is not without drawbacks. The growth of e-commerce has made it harder for some in-person stores to succeed. In the past decade, Sears, Toys “R” Us, and several other large retailers have closed their physical stores. More than 3,200 such places have closed in the United States in this year alone. That is according to CoreSite, a company that tracks retail and technology data.

Some people also worry about e-commerce’s effect on the environment. Data centers are needed to process online orders. But they use huge amounts of energy. And millions of trees are cut down to make all the boxes that arrive at our doors daily.

But other people point out that e-commerce has positive effects too. For example, some retailers have successfully used online sales to increase foot traffic in their physical stores—such as by encouraging customers to pick up and return internet orders in person.

And not all of online shopping’s impact on the planet is bad. A single truck delivering products to many homes can be less harmful to the environment than a bunch of shoppers individually driving to different stores, logistics experts say. Plus, some online sellers have been trying to make deliveries more climate friendly by switching to electric delivery vehicles. 

But other people point out that e-commerce has positive effects too. For example, some retailers have successfully used online sales to get more people into their physical stores. One example is encouraging customers to pick up and return internet orders in person.

And not all of online shopping’s impact on the planet is bad. A single truck delivering products to many homes can be less harmful to the environment than a bunch of shoppers separately driving to different stores. That is according to logistics experts. Plus, some online sellers have been trying to make deliveries more climate friendly by switching to electric delivery vehicles.

The rise of online shopping has also affected how we interact. Trips to the store with friends or family offer a way for people to connect and for young people to discover what they like and don’t like, says Alexandra Lange. She’s the author of Meet Me by the Fountain: An Inside History of the Mall. However, the younger the customer, the more likely they are to shop online.

“Going to a mall where there are lots of different kinds of shops is one way teens and tweens explore their identities because they can try on different things with friends in a nonjudgmental way,” Lange says. “That’s a loss with online shopping.”

E-commerce is expected to keep growing. Some companies, including J.Crew and Bloomingdale’s, have introduced cyber stores where people can shop in virtual reality. But experts predict that online shopping won’t completely replace in-person shopping, which still represents about 80 percent of retail sales in the U.S., according to Statista. The social aspect of shopping is part of why Lange and others expect in-person stores to stick around.

“Shopping isn’t just about buying something new,” Lange says. “It’s about all the things you do around the shopping experience and who you’re having that experience with.” 

The rise of online shopping has also affected how we interact. Trips to the store with friends or family offer a way for people to connect. It also is a way for young people to discover what they like and do not like, says Alexandra Lange. She is the author of Meet Me by the Fountain: An Inside History of the Mall. However, the younger the customer, the more likely they are to shop online.

“Going to a mall where there are lots of different kinds of shops is one way teens and tweens explore their identities because they can try on different things with friends in a nonjudgmental way,” Lange says. “That’s a loss with online shopping.”

E-commerce is expected to keep growing. Some companies have introduced cyber stores where people can shop in virtual reality. J.Crew and Bloomingdale’s have done that. But experts predict that online shopping will not completely replace in-person shopping. In-person shopping still represents about 80 percent of retail sales in the U.S., according to Statista. The social side of shopping is part of why Lange and other experts expect in-person stores to stick around.

“Shopping isn’t just about buying something new,” Lange says. “It’s about all the things you do around the shopping experience and who you’re having that experience with.”