Ecommerce Trends: Which Type of Online Retailer Is Growing Fastest in the 2020s?

Why It Matters

The rapid expansion of CBMs highlights a decisive shift toward direct‑to‑consumer models, prompting brands to invest in owned e‑commerce platforms. Investors and retailers can gauge where future market share and profitability will concentrate.

Key Takeaways

• CBMs achieved 9.3% five‑year CAGR, fastest among all merchant types.
• Amazon drove Web‑Only segment CAGR to 10.1%; without it, 5.7%.
• Total ecommerce sales hit $1.379 trillion in 2025, five years over $1 trillion.
• Hims & Hers grew 60.7% YoY, top health & beauty online retailer.
• Only 4.4% of CBMs use subscription models, indicating modest recurring revenue adoption.

Pulse Analysis

The 2026 edition of Digital Commerce 360’s Top 1000 Report confirms that U.S. ecommerce sales have solidified their $1‑trillion-plus status, reaching $1.379 trillion in 2025. After a pandemic‑induced slowdown in 2022, growth rebounded to 6.8% in 2023 and 7.1% in 2024, underscoring the sector’s resilience. This sustained momentum is reshaping competitive dynamics, as merchants that can scale digitally capture a larger slice of consumer spend.

Consumer Brand Manufacturers (CBMs) emerged as the fastest‑growing merchant type, posting a 9.3% five‑year CAGR. By producing their own goods and selling directly online, brands like Apple, Dell and Lululemon leverage strong brand equity and data‑driven customer relationships. Although only 4.4% of CBMs employ subscription models, the high growth rate suggests that direct‑to‑consumer strategies—combined with premium pricing and loyalty programs—are delivering outsized returns.

Web‑Only retailers sit a close second with a 9.2% CAGR, but the figure is heavily skewed by Amazon’s 10.1% growth. Stripping Amazon out reduces the segment’s CAGR to 5.7%, revealing a more modest pace for pure‑play online stores such as Chewy, Wayfair and iHerb. The reliance on Amazon highlights the platform’s market‑dominant position, while also signaling opportunities for niche players to differentiate through specialized assortments or subscription services. As investors evaluate the next wave of ecommerce, the contrast between brand‑owned DTC models and platform‑driven Web‑Only players will be a key determinant of long‑term valuation.