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Forecast Period
|
2026-2030
|
|
Market Size (2024)
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USD 102.12 Million
|
|
CAGR (2025-2030)
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18.98%
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Fastest Growing Segment
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Online
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Largest Market
|
West
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Market Size (2030)
|
USD 120.34 Million
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Market Overview
United States Online Video Shopping
Market was valued at USD 102.12 Million in 2024 and is
expected to reach USD 120.34 Million by 2030 with a CAGR of 18.98% during the
forecast period. The United States Online Video Shopping market is driven
by several factors, including the increasing consumer preference for
interactive and engaging shopping experiences. With the rise of social media
platforms, live streaming, and influencer culture, consumers are increasingly
drawn to online video shopping for its convenience, real-time interaction, and
entertainment value. Advancements in video technology, such as shoppable videos
and augmented reality (AR) integration, enhance the online shopping experience
by allowing customers to directly purchase products from videos. Also, the
continued growth of e-commerce, combined with the shift toward mobile shopping
and the increasing use of mobile devices, further accelerates the popularity of
online video shopping, making it a key trend in modern retail.
Key Market Drivers
Rising
Growth of Social Media & Influencer Culture Across the Region
The rising growth of social media and influencer
culture is a major driver for the United States online video shopping market. As
a part of this, according to a recent study, as of 2024, the quantity of social
media users in the United States would rise continuously from 2024 to 2029,
totalling an increase of 26 million users (+8.55 percent). Platforms like
Instagram, TikTok, and YouTube have transformed how consumers discover
products, with influencers playing a central role in shaping purchasing
decisions. These influencers, who often have large, engaged followings, use
video content to showcase products, demonstrate their uses, and provide
personal endorsements, making shopping more interactive and authentic. This
cultural shift toward social commerce is further fuelled by the rise of
live-streamed events, where influencers host real-time shopping experiences,
offering exclusive deals and directly linking viewers to products. Consumers
are increasingly looking for more immersive, entertaining, and seamless
shopping experiences, and social media provides the perfect platform for this
interaction. As a result, online video shopping has become a natural extension
of social media engagement, with brands leveraging influencers to reach target
audiences in an organic, highly engaging manner. This trend is also encouraging
more brands and retailers to invest in shoppable video content, where viewers
can purchase directly from the video, enhancing convenience and driving
conversion rates. The synergy between social media growth and influencer
marketing continues to be a key driver in shaping the online video shopping
landscape in the U.S.
Increase
in Mobile Shopping
The increase in mobile shopping is a significant
driver of the United States online video shopping market. As a part of this,
according to a recent study, as of January 2025, more than 70% of all online
sales originated from a mobile device over the past year. During the 2024
holiday season, US consumers were reported to have spent USD 241 billion
online, representing an increase of approximately 9% compared to the previous
year. With the widespread adoption of smartphones, consumers now have the
convenience of shopping anywhere and anytime, significantly contributing to the
growth of video shopping. Mobile devices provide easy access to social media
platforms, e-commerce websites, and video-sharing apps, which are becoming
central hubs for discovering and purchasing products through video content.
Consumers increasingly prefer the mobile shopping experience due to its
convenience, speed, and the ability to instantly access videos that demonstrate
products in real time. Shoppable videos, integrated with mobile platforms,
allow viewers to directly purchase items featured in videos with just a few
clicks, creating a seamless, interactive shopping experience. Mobile shopping
is further enhanced by the growing capabilities of mobile apps, including
personalized recommendations, augmented reality (AR) features, and push
notifications for exclusive deals, all of which drive higher engagement with
online video shopping. Also, with the expansion of mobile payment options like
Apple Pay and Google Wallet, the checkout process has become faster and more
secure, encouraging consumers to complete purchases directly from their
smartphones. As mobile usage continues to rise, the integration of video
content into mobile shopping platforms will only strengthen its position as a
leading method for consumers to shop online in the U.S.
Surging
E-Commerce Growth
Surging e-commerce growth is a key driver of the
United States online video shopping market. As a part of this, according to
a recent study, as of 2024, the revenue of the U.S. e-commerce market would
steadily rise over the period from 2024 to 2029, amounting to a total increase
of 657.8 billion U.S. dollars (+53.79 percent). As online retail continues
to expand, consumers are increasingly turning to digital platforms for
convenience and a broader range of products. The rapid growth of e-commerce,
accelerated by shifting shopping behaviours and the impact of the COVID-19
pandemic, has led to a significant increase in video content as part of the
shopping experience. Consumers are now looking for more interactive, engaging,
and informative ways to shop, and online video has become a perfect tool for
this. Retailers are leveraging video content, such as product demonstrations,
tutorials, unboxing videos, and influencer endorsements, to enhance the
shopping experience and drive sales. Shoppable videos allow users to directly
purchase products showcased in videos, eliminating the need to navigate to a
separate page or website, thus streamlining the buying process. As e-commerce
platforms invest in advanced video technologies, including augmented reality
(AR) and live-streamed shopping events, the demand for video-based shopping is
likely to grow. The integration of videos with user-friendly e-commerce
interfaces is improving consumer confidence and encouraging impulse buying,
contributing to higher conversion rates and overall market growth. As
e-commerce continues to thrive, video shopping is becoming an integral part of
the online retail experience in the U.S.
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Key Market Challenges
Regulatory
Complexities
Regulatory complexities pose a significant challenge
in the United States online video shopping market. As video shopping continues
to grow, it faces increasing scrutiny from regulators, particularly in areas
related to advertising, consumer protection, and data privacy. The use of
influencers and user-generated content in online shopping raises concerns about
transparency and truth in advertising. There are ongoing efforts to ensure that
influencers clearly disclose paid partnerships and sponsored content, but
inconsistencies in enforcement and varying guidelines across platforms can
complicate compliance for businesses. Also, issues related to data privacy and
security are critical. With video shopping relying heavily on consumer data to
personalize experiences, strict regulations such as the California Consumer
Privacy Act (CCPA) and the potential for more stringent federal data protection
laws require businesses to adapt quickly. Companies need to ensure that
consumer data is handled properly, with secure payment systems and transparent
data usage policies, which can increase operational complexity. Also, some
e-commerce platforms and retailers may face challenges in meeting the standards
set by regulatory bodies, particularly in terms of refund policies, fair
pricing, and the handling of consumer complaints. As the market continues to
evolve, staying abreast of changing regulations while maintaining consumer
trust and ensuring compliance remains a significant challenge for the industry.
Intense
Competition Among Players
Intense competition among players is a major challenge
in the United States online video shopping market. As more e-commerce
platforms, retailers, and influencers embrace video shopping, the market is
becoming increasingly crowded, making it difficult for individual businesses to
stand out. Large companies with substantial resources dominate the market,
offering robust video shopping features, exclusive content, and advanced
technologies. Smaller businesses and startups may struggle to compete, facing barriers
in reaching a broad audience or securing partnerships with influencers and
content creators. Also, the rapid growth of video shopping has led to the rise
of new players in the market, intensifying competition for both consumer
attention and ad revenues. This dynamic often leads to price wars, with
platforms offering discounts or special deals to attract buyers. However,
price-based competition may impact profitability for smaller businesses and
reduce the perceived value of the products being sold. To stay competitive,
companies need to continuously innovate and differentiate themselves by
offering unique content, high-quality video experiences, and personalized
shopping options. Also, maintaining a strong relationship with consumers and
influencers is critical to fostering brand loyalty. The challenge of standing
out in such a competitive landscape requires businesses to invest in
cutting-edge technology, marketing strategies, and user engagement tactics.
Key Market Trends
Rise
of Live Streaming Platform
The rise of live streaming platforms is a significant
trend in the United States online video shopping market. As a part of this,
as of October 2024, in the United States, 18% of individuals have made
purchases via live stream shopping. Live streaming has become an essential
tool for e-commerce, allowing brands and retailers to connect with consumers in
real time, creating an interactive and immersive shopping experience. Platforms
like Instagram, Facebook, and TikTok have become central hubs for live shopping
events, where influencers, celebrities, and brands showcase products, answer
questions, and offer exclusive deals directly to viewers. This trend is fuelled
by the growing consumer preference for authentic, real-time engagement, as well
as the ability to interact with hosts and other viewers during live streams.
For consumers, live streaming offers a sense of urgency and excitement, often
coupled with limited time offers and promotions, which can drive impulse
purchases. Brands are leveraging live streaming not only for product showcases
but also for building a sense of community and trust with their audience. The
rise of live-streaming platforms has also led to the development of integrated
e-commerce tools, where viewers can make instant purchases through clickable
links within the live video. This seamless shopping experience enhances
convenience and drives higher conversion rates, making live streaming an
increasingly important component of the online video shopping landscape in the
U.S.
Increased
Popularity of Mobile-First Shopping
Mobile-first shopping is a growing trend in the United
States online video shopping market, driven by the widespread use of
smartphones and tablets for browsing and purchasing products. As mobile device
usage continues to increase, consumers are seeking more seamless and convenient
shopping experiences, which has prompted businesses to focus on
mobile-optimized platforms. Mobile-first shopping involves prioritizing the
design and functionality of e-commerce platforms and video content specifically
for mobile users. This trend includes features like shoppable videos, where
users can tap on video content to make purchases instantly, as well as mobile
apps that integrate video content with personalized shopping experiences. With
advancements in mobile payment technologies, such as Apple Pay, Google Wallet,
and other mobile payment solutions, the process of purchasing products via
video has become even more streamlined and secure. In addition,
mobile-first strategies are enhanced by features like push notifications,
location-based promotions, and social media integration, making it easier for
users to discover and purchase products directly through video content. Brands
and retailers are increasingly using mobile video shopping to tap into the
growing consumer demand for convenient, on-the-go shopping experiences. As
mobile commerce continues to dominate, mobile-first shopping will play an even
greater role in shaping the future of online video shopping in the U.S.
Increased
Integration of Augmented Reality
The increased integration of augmented reality (AR) is
a transformative trend in the United States online video shopping market,
enhancing the shopping experience by blending digital content with the real
world. AR allows consumers to visualize products in their own environment,
helping them make more informed purchasing decisions. For example, customers
can virtually try on clothing, see how furniture would look in their homes, or
view makeup products in real-time through their mobile devices. This trend is
becoming more prominent with video content, as brands and retailers integrate
AR features into their videos. Shoppable AR videos allow consumers to interact
with products during the video and make purchases directly. Retailers are
increasingly adopting AR-powered video to offer immersive, personalized
shopping experiences that mimic the in-store experience while shopping online.
For instance, makeup brands allow customers to see how products will look on
their skin through AR filters, while furniture companies offer
"try-before-you-buy" experiences by letting customers virtually place
items in their living rooms. This integration of AR into video shopping not
only enhances consumer engagement but also reduces uncertainty and the
likelihood of returns, as customers have a clearer understanding of the product
before making a purchase. As AR technology continues to evolve, it is expected
to become an essential component of the online video shopping experience,
providing consumers with even more interactive, customized, and convenient ways
to shop.
Segmental Insights
Payment
Mode Insights
Cash on Delivery dominated the United
States Online Video Shopping market, particularly in terms of payment
preference for a significant portion of consumers. Despite the rise of digital
payment options, COD remains popular due to its convenience and the trust it
offers, especially among first-time online shoppers. For many consumers, the
option to pay for products upon delivery alleviates concerns about payment
security and fraud, which can be a barrier when making online purchases. This
payment method is particularly beneficial for video shopping platforms, as it
provides a safer, more transparent option for customers who might be hesitant
to enter their credit card details or other sensitive information online. It
also allows consumers to physically inspect products before making a final
payment, enhancing confidence in their purchase decisions. While digital
wallets and credit card payments continue to grow, COD remains deeply rooted in
the shopping culture in certain regions of the U.S., especially among older
generations or in areas with less access to banking or credit facilities. As
online video shopping platforms cater to a diverse consumer base, the inclusion
of COD as a payment option ensures they remain accessible and trusted by a wide
range of customers.
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Regional Insights
The West region dominated the United States Online
Video Shopping market, driven by a combination of technological innovation, a
high concentration of e-commerce and tech companies, and a large, digitally
savvy consumer base. Major cities like Los Angeles, San Francisco, and Seattle
are home to some of the largest tech giants and online shopping platforms,
making the region a hub for the development of video shopping technologies and
strategies. Consumers in the West have been early adopters of online video shopping,
influenced by the region’s strong presence of social media influencers, content
creators, and streaming platforms. This has facilitated the integration of
video content with e-commerce, further fuelling the popularity of video
shopping. Also, high-speed internet availability and mobile penetration in the
West region make it easier for consumers to engage with video shopping
experiences, whether through shoppable videos or live-streamed events. The
West’s thriving entertainment and media industry also contributes to the
success of online video shopping, with many retailers leveraging video-based
marketing to target a younger, trend-conscious audience. As the market for
online video shopping continues to grow, the West region remains a key player
in shaping trends, technology, and consumer behaviour.
Recent Developments
- In August 2024, YouTube
partnered with Shopify has expanded, enabling all eligible Shopify Plus
and Advanced merchants in the United States to register for YouTube Shopping’s
affiliate program via the Google & YouTube app on Shopify. Through the
expanded partnership, these merchants can become part of the YouTube Shopping
affiliate program alongside hundreds of U.S. brands already involved.
- In March 2023, StoryStream, a visual
commerce platform powered by AI launched its new Live Video Shopping
solution. The announcement comes after several successful pilot projects with
brands such as LookFantastic & Lancome, Braun, Oral-B, and Zavvi. The new
platform from StoryStream allows online retailers to incorporate Live Video
Shopping experiences into their eCommerce websites seamlessly, offering
customers a more engaging and interactive online shopping experience. The new
Live Video Shopping Studio enables online retailers to effortlessly organize
live shopping events where customers can engage with hosts in real-time, pose
questions, and buy products directly from the video stream.
Key Market Players
- Amazon.com, Inc.
- Smartzer Ltd
- Bambuser AB
- Buywith Inc.
- Clicktivated Video, Inc.
- Oveit Inc.,
- CommentSold, Inc.
- LiveSell
- GhostRetail Inc.
- Channelize.io.
|
By Type
|
By Product Type
|
By Payment Mode
|
By Region
|
- Shoppable Videos
- Livestream Shopping
|
- Apparel & Accessories
- Health & Personal Care
- Consumer Electronics
- Others
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- Online Payment
- Cash on Delivery
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- South
- West
- Mid-West
- North-East
|
Report Scope:
In this report, the United States Online Video
Shopping Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- United States Online Video
Shopping Market, By Type:
o Shoppable Videos
o Livestream Shopping
- United States Online Video
Shopping Market, By Product Type:
o Apparel & Accessories
o Health & Personal Care
o Consumer Electronics
o Others
- United States Online Video
Shopping Market, By Payment Mode:
o Online Payment
o Cash on Delivery
- United States Online Video
Shopping Market, By Region:
o South
o West
o Mid-West
o North-East
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the United States Online Video Shopping Market.
Available Customizations:
United States Online Video Shopping Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
United States Online Video Shopping Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]