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U.S. FASHION ECOMMERCE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

U.S. Fashion Ecommerce Market, By Product Type (Apparel, Footwear, Accessories, Beauty Products, Jewelry, Bags, Others), By End User (Men, Women, Kids, Unisex), By Price Range (Premium, Mid, Low, Luxury), By Category (Casual wear, Formal wear, Sportswear, Innerwear, Ethnic wear, Winter wear, Others), By Distribution Channel (Company owned websites, Marketplaces, Mobile apps, Social commerce, Brick and mortar stores, TV home shopping, Others)

  • Published In : May 2025
  • Code : CMI6426
  • Pages :140
  • Formats :
      Excel and PDF
  • Industry : Consumer Goods

U.S. Fashion Ecommerce Market Size and Forecast – 2025-2032

The U.S. fashion ecommerce market size was valued at US$ 144.97 Bn by 2025 and is expected to reach US$ 336.86 Bn in 2032, growing at a compound annual growth rate (CAGR) of 12.8% from 2025 to 2032.

Key Takeaways

  • Based on Product Type, Apparel Segment holds 25% market share in the market in 2025. This is due to increased usage of online purchase of apparel because of advantages such as convenient return policies and discounts is driving the growth of the apparel segment.
  • The Southeast region dominates the U.S. fashion ecommerce market with more than 27% of the market share due to elements such as high population growth, escalating internet users, and the popularity of online sales.
  • The West region is the second-largest market for fashion ecommerce in the U.S., with a market share of over 23%. This is due to the high level of affluence in the region, the large number of tech-savvy consumers, and the popularity of online fashion brands.
  • The Midwest region is the third-largest market for fashion ecommerce in the U.S., with a market share of over 20%. This is due to the large population of the region, the increasing number of online shoppers, and the popularity of major department stores and retailers.
  • The Northeast region is the fourth-largest market for fashion ecommerce in the U.S., with a market share of over 20%. This is due to the high level of education and income in the region, the large number of fashion-conscious consumers, and the popularity of online shopping.

Market Overview

The growth of the U.S. fashion eCommerce market is being driven by growing consumer demand for convenience, more product variety, and the convenience of shopping anywhere and at any time. Growing penetration of smartphones, social media, and digital marketing tactics has significantly enhanced the reach of online fashion retailers. The growth of direct-to-consumer (DTC) brands and a shift towards personalized shopping experiences is also fuelling the growth of the market. The increased application of artificial intelligence (AI) for product suggestions, virtual try-ons, and automated customer support is also making the shopping experience more interactive and personalized, which leads to greater consumer satisfaction and retention. Moreover, sustainability and ethical fashion are becoming increasingly popular in U.S. consumers with higher emphasis on eco-friendly products and transparent supply chains.

Current Events and Its Impact on U.S. Fashion Ecommerce Market

Current Events

Description and its impact

Impact of social media and Influencers

  • Description: Social media websites such as Instagram, TikTok, and YouTube are becoming important drivers for fashion ecommerce revenue. Fashion brands are endorsed by influencers, and social media advertising generates instant consumer interest and activity.
  • Impact: Fashion brands are spending significantly on social media marketing and influencer collaborations, increasing brand awareness and developing targeted ad campaigns to engage niche audiences.
  • Description: The emergence of social commerce features (e.g., Instagram Shopping, TikTok Shopping) enables consumers to buy directly from the platform, eliminating the gap between content discovery and purchase.
  • Impact: The effect of social media on consumer behavior is making sales funnels shorter, inducing impulse buys, and causing sales cycles to be speeded up for fashion ecommerce companies. This has made many companies develop innovative social media marketing approaches to remain competitive.

Surge in Mobile Shopping

  • Description: As smartphone and mobile internet penetration deepens, consumers are shopping fashion products more and more through mobile apps and responsive websites. Customers can now buy products anywhere, anytime.
  • Impact:  Ecommerce companies are responding by investing in mobile websites and apps to provide smooth user experiences, which is increasing conversion rates and decreasing bounce rates.
  • Description: Mobile payment systems such as Apple Pay, Google Pay, and other wallet services have further optimized the buying process, allowing consumers to make transactions on their mobile devices more easily.
  •  Impact: Mobile shopping has also promoted mobile-first strategies and the development of mobile-first strategies among fashion retailers with the aim of minimizing loading times, ease of navigation, and streamlined checkout for customers to accommodate mobile shoppers, promoting customer retention.

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U.S. Fashion Ecommerce Market Drivers:

  • Rising Internet and Smartphone Penetration:Increasing internet and smartphone penetration in the U.S. is one of the key drivers of the expansion of the fashion ecommerce market. According to data, internet penetration in the U.S. was 90% in 2021, and there were 300 million internet users. The adoption of smartphones is estimated to be approximately 85% of the population. The high mobile connectivity is empowering consumers to comfortably surf and shop for fashion products from online portals at any point in time and location. Mobile-friendly websites and user-friendly mobile apps are being created by online stores to cater to this set of customers. The easy affordability of low-cost mobile internet packages is also assisting the expansion of m-commerce among fashion products. Shein, a global online fast fashion merchant, has achieved success by deploying mobile-first marketing strategies to support its customers, particularly in mature markets such as the U.S. Shein's mobile platform is very highly optimized, ensuring an intuitive experience for customers to browse and shop fashion items through their mobile devices.
  • Social media and Digital Marketing Influence: social media and digital marketing are proving to be powerful drivers for U.S. fashion ecommerce growth. Social media websites such as Instagram, Facebook, Pinterest, and TikTok have emerged as inspiration platforms for fashion discovery. Social media is being utilized by retailers for promotion and digital marketing via targeted promotions, influencer campaigns, etc. Platforms such as social commerce and click-to-buy are simplifying the purchasing process for shoppers. An AR-based virtual try-on is offering better shopping experiences. The millennial and Gen Z generation, which is very active on social media, are a key target audience for online fashion brands.
  • Omni-Channel Retailing: Online and offline omni-channel approaches by retailers give consumers convenience and flexibility. Consumers can look up products online and also experiment with physical stores before buying. Click-and-collect and in-store return on online purchases enhance consumer attractiveness. Inventory and CRM integration across channels is being implemented by retailers to have a common brand experience. Omni-channel presence is becoming increasingly essential for fashion brands to connect and retain customers. Department stores and retail chains are speeding up their investments in omni-channel capabilities. Nordstrom provides a frictionless experience for customers by having the online and offline channels blended together. Customers are able to browse through products on their website or mobile app, check availability, and then decide if they want to purchase it online and get it shipped, or choose click-and-collect to collect it from a store that is close to them.
  • Contactless Payments and Fintech Innovations: Convenient digital payment modes and fintech innovations are facilitating fashion ecommerce growth. Solutions such as one-click checkout, e-wallets, UPI, BNPL, QR codes, etc. make the payment process easy on online fashion websites. They ensure security, speed and convenience to customers. Merchants are consolidating various payment options on websites and mobile applications to offer convenience. Fintech technologies such as virtual cards, EMI facilities are enhancing affordability for value-conscious segments. Buy now Pay-later facilities assist in driving increased cart sizes and order values. Therefore, convenience of digital payments is a significant facilitator of online fashion retail. ASOS, the online fashion retailer, has incorporated several digital payment methods on its website and mobile application to make the buying process easy and convenient for its international customers.

U.S. Fashion Ecommerce Market Trends:

  • Movement towards Sustainable Fashion: Sustainability is an emerging trend in the US fashion ecommerce market driven by eco-conscious consumers. Consumers are increasingly looking for sustainable materials, ethical manufacturing, transparency, etc. Retailers are pushing their green profiles and aligning with sustainable brands. Labelling of products identifies organic, recycled or upcycled products. Instructions for responsible clothes disposal are being offered. Apparel rental enables reuse of clothing. Resale via peer-to-peer sites such as Depop and Poshmark is becoming more popular. Use of eco-packaging indicates devotion to minimizing the carbon footprint of fashion. Efforts towards sustainability can assist in establishing brand image and customer loyalty.
  • Live Video Commerce on the Rise: Live video shopping facilitating real-time customer and influencer/retailer interactions is growing in popularity. Sites such as ShopShops, Popshop Live, and NTWRK offer lively video commerce experiences. Customers can buy products featured in real time with link integration. Livestream user-generated content is seen as more authentic. Live experiences such as fashion shows, store visits, and AMAs create engagement. Gamification features such as limited-edition drops and in-the-moment offers incite impulse buying. The interactive format offers valuable consumer insight. Chinese retailers have become huge successes with livestreaming. U.S. fashion labels can further embrace live video commerce on social platforms.
  • Platform for D2C Emerging Brands: Ecommerce offers a platform for direct-to-consumer (D2C) fashion brands independent of intermediaries. Digital platforms facilitate the creation of awareness and community around new brands. Reduced barriers to launch enable niche brands to target niche consumer groups. Data insights facilitate the honing of the product portfolio. Separate social media handles of founders or designers build robust brand personalities. Virtual try-ons and customization drive customers. Limited, exclusive drops create hype. D2C brands emphasize storytelling and portraying diversity and inclusivity. The D2C model will become increasingly prominent, propelled by entrepreneurial designers and ongoing consumer enthusiasm for emerging brands.
  • Retail Media Advertising Growth: Retail media advertising is a growing marketing channel for fashion brands. Retailers offer sponsored advertisement real estate on ecommerce websites/apps to advertise products. Search ads, native ads, and banner ads on product pages enhance visibility. Real-time performance is being delivered to advertisers. Trust within the retailer ecosystem is driving conversions. For retail advertisers, advertising revenues offset thin margins and pay for investments.

Amazon now owns retail media in the U.S. Other retail chains, including Walmart, Target, and Kroger, also are building up their retail media capabilities. The channel delivers measurable sales impact together with consumer understanding. Fashion brands are giving more media spending to retail ad.

U.S. Fashion Ecommerce Market Restraints:

  • Operational and Delivery Costs: The cost of logistics associated with shipping, deliveries, and returns are a source of concern for U.S. fashion ecommerce retailers. Offering quicker and more flexible delivery options is expensive. Slowing deliveries owing to inventory or warehouse capacity issues pose a negative customer experience. Excessive levels of return and exchange of clothing due to incorrect size or fit also affect profitability. Operational investments needed in fulfillment infrastructure, technology, and data management burden margins. Supply chain disruptions such as labor and raw material shortages add to the complexity of operations. Fixing these pain points calls for significant investments and process changes by online fashion retailers.
  • Organized Retail Expansion: The growing omni-channel presence of big box retailers and department store chains presents competition to online-only players. Giants such as Walmart, Target, and traditional fashion retailers are rapidly expanding their ecommerce platforms. Their brand stature, size, and network of physical stores are benefits. Private label pushes by retailers also address price-conscious fashion consumers. Niche brands of smaller size have less space to compete on price or promotion budgets. Innovative business models such as social commerce, edited assortments, and community involvement, however, offer differentiation opportunities for pure-play fashion ecommerce retailers.
  • Developing Privacy Rules and Monitoring Constraints: Data privacy rules such as General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) constrain some customer targeting and data gathering practices of fashion ecommerce brands. Tech platforms' restrictions placed on third party cookies and ad IDs affect digital media performance. It becomes tougher to deliver targeted advertising and customized suggestions. Compliance costs also include operational overheads for retailers. But privacy-oriented marketing using first-party data and contextual methods still has growth potential. Shoppers must balance personalization with responsible data use in alignment with changing regulations. Furthermore, customization and live streaming could unlock new opportunities by enhancing customer engagement on digital platforms.

Opportunities in U.S. Fashion Ecommerce Market

  • Embracing Augmented Reality and 3D: The use of augmented reality (AR) and three-dimensional (3D) modelling in fashion ecommerce represents significant growth opportunities. AR-enabled virtual trial rooms enable customers to virtually experiment with garments and accessories. 3D product modelling improves visualization. Virtual foot measurement for shoes is an example of solutions that enhance fit and size suggestions. Interactive experiences drive engagement and purchase intent. Retailers can create simulated product catalogues without the need for photoshoots.
  • Implementation of Artificial Intelligence: AI-driven innovations hold key opportunities to push fashion ecommerce forward. AI capabilities in visual search, product suggestions, inventory management, logistics, etc. can propel operational efficiencies. Powerful algorithms examine consumers' behaviour to deliver customized engagements across channels. Chatbots and virtual assistants automate customer service. Demand forecasting, dynamic pricing assist in streamlining sales and minimizing waste. Tedious tasks are automated using AI and ML solutions so that human talent can be allocated to more purposeful work. Retailers can leverage AI startups and cloud offerings from technology leaders to develop their AI capabilities.
  • Big Data Analytics: Deep analysis of consumer behaviour and market data gives useful customer and product insights to fashion retailers. Big data analytics uncovers trends, demand patterns, and market gaps that can be used to make better business and inventory decisions. Detailed segmentation assists in targeted marketing and efficient consumer engagement based on purchase history and demographics. Predictive analytics allow for accurate demand forecasting and inventory optimization. Data mining gives a deeper insight into internal processes and external markets. Fashion companies can establish specialized data science units or avail analytics consultant organizations to tap into big data for competitive leverage.
  • Online Customization Growth: The offering of mass customization and personalization in fashion ecommerce brings new opportunities for growth. Consumers increasingly look for distinctive products reflecting individual styles and fit specifications. On-demand manufacturing and digital printing facilitate small-batch customized apparel and accessories production. Customer-friendly customization platforms can be offered by retailers for co-creating products with consumers. Personalization through custom boxes, labels, and wrapping paper enhances experience. Personalized fashion product curation based on user preferences increases interaction. Custom wear has greater margin and fewer return rates because of fit satisfaction. Addressing this demand potential is a way in which fashion ecommerce brands can stand out.

Segmental Analysis

U.S. Fashion Ecommerce Market By Product Type

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Fashion ecommerce refers to online marketing of clothes, footwear, accessories, jewellery, handbags, and other apparel products. Driving the growth is rising smartphone and internet penetration along with heightened impact of social media and online advertising on buying behaviors.

U.S. Fashion Ecommerce Market Insights by Product Type, Apparel Segment Leads The Market

Based on product type, the industry is classified into apparel, footwear, accessories, beauty items, jewelry, bags, and others.  Among which apparel segment holds 25 % market share. Increased usage of online purchase of apparel because of advantages such as convenient return policies and discounts is driving the growth of the apparel segment.

Emerging Technologies, and its impact on the market

Emerging technologies are transforming the U.S. fashion e-commerce industry in revolutionary ways. Some of the most important advancements such as Artificial Intelligence (AI), Augmented Reality (AR), and 3D printing are transforming consumer shopping and brand operations. AI is improving personalized shopping, making product recommendations better, managing inventory, and customer service through chatbots. Machine learning algorithms forecast trends, which provides brands with a competitive advantage.

Augmented Reality (AR) is enabling brands to virtually try on clothes and accessories, lowering return rates and enhancing buyer confidence. Brands such as Gucci and Warby Parker are already using AR to enhance the online shopping experience.

3D printing is making headlines by enabling brands to produce custom designs on demand, lowering returns and enhancing sustainability. This technology also enables quicker prototyping and more streamlined supply chains.

Blockchain technology is developing increased transparency along the fashion supply chain, enabling consumers to discover product origins and enhance trust. In addition, voice commerce and intelligent devices are continuing to simplify the purchase process, whereas social media connectivity allows for the direct-to-consumer marketing directly. Generally speaking, these breakthroughs are moving the frontiers of e-commerce by delivering increased personalized, environmentally friendly, and immersive purchasing experience, which have the potential to dominate the fashion industry's future in the United States.

End-user Survey, Feedback, and unmet needs

For U.S. e-commerce fashion businesses, end-consumer surveys and feedback provide both satisfaction and a lack of fulfilments. There is appreciation among consumers for convenience and diversity online, with large numbers of respondents having high levels of satisfaction from ease of looking and buying. Yet surveys indicate frustration on the part of consumers regarding lack of size consistency as well as unavailability of complete and accurate descriptions and images. Several of the online consumers commented that sizing differences between brands can result in dissatisfaction, and returns are often a problem.

Another category where shoppers indicated unfulfilled needs was customized shopping experiences. Even when recommendations and fashion advice are at hand, shoppers feel that web stores do not offer sufficient personal options based on their individual likes, body type, or prior shopping history. In addition, shipping times continue to be an issue, as most consumers demand quicker shipping times and clearer tracking of deliveries. Feedback also identifies issues with sustainability and ethical production. Shoppers are increasingly seeking brands that prioritize eco-friendly materials and transparent supply chains, yet many believe there is not enough data provided to make informed purchasing decisions.

To address these requirements, fashion online retailers can enhance size guides, provide more personalized options with AI-powered recommendations, and deliver quicker, more dependable shipping. Further, making more transparency on sustainability available and more sustainable product choices might assist in better matching increasing consumer demand for ethical fashion.

Pricing Analysis

The American fashion online shopping market is seeing dramatic changes in pricing strategies with the recent policy shifts and changing consumer demands. The sunset of the "de minimis" provision on May 2, 2025, has caused higher tariffs on Chinese products, and companies such as Shein and Temu have increased prices by as much as 100%.

To counter this, fashion stores are implementing dynamic pricing strategies, dynamically changing prices in real-time depending on demand, competitor behaviour, and stock levels. Moreover, subscription pricing is also on the rise, providing customers with frequent shipments or privileged access to services for a recurring payment, thus achieving customer loyalty and ensuring a consistent revenue stream. Seasonal and promotional pricing tactics are still central, with brands initiating early-bird and pre-season promotions to control inventory and maximize returns on a year-round basis. Additionally, ethical pricing methods are gaining prominence, with consumers supporting transparency and sustainability in pricing.

Such dynamic pricing techniques demonstrate the sector's response to emerging economic conditions and consumer behaviour in an effort to ensure competitiveness as well as customer satisfaction in a fluid marketplace.

Market Report Scope

U.S. Fashion Ecommerce Report Coverage

Report Coverage Details
Base Year: 2024 Market Size in 2025: USD 144.97 Bn
Historical Data for: 2020 To 2024 Forecast Period: 2025 To 2032
Forecast Period 2025 to 2032 CAGR: 12.8% 2032 Value Projection: USD 336.86 Bn
Segments covered:
  • By Product Type: Apparel, Footwear, Accessories, Beauty Products, Jewelry, Bags, Others
  • By End User: Men, Women, Kids, Unisex
  • By Price Range: Premium, Mid, Low, Luxury
  • By Category: Casual wear, Formal wear, Sportswear, Innerwear, Ethnic wear, Winter wear, Others
  • By Distribution Channel: Company owned websites, Marketplaces, Mobile apps, Social commerce, Brick and mortar stores, TV home shopping, Others
Companies covered:

Amazon, Walmart, Ebay, Macys, Gap, Nike, Target, Nordstrom, JCPenney, Kohls, Wayfair, Best Buy, Home Depot, Sephora, Ulta Beauty, Forever 21, H&M, Zara, Urban Outfitters, ASOS

Growth Drivers:
  • Growing Internet and Smartphone Penetration
  • Influence of Social Media and Digital Marketing
  • Omni-Channel Retailing
  • Contactless Payments and Fintech Innovations
Restraints & Challenges:
  • Delivery Challenges and Operational Costs
  • Organized Retail Expansion
  • Evolving Privacy Regulations and Tracking Restrictions

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Recent Developments:

  • In 2025, Pinterest has added a new AI-enhanced feature called the "Visual Language Model" that improves fashion search capabilities on the site. The feature examines images of clothing and accessories and creates descriptive terms for style, color, and overall aesthetic "vibes" to help users locate particular fashion products—even if they don't know how to describe what they're looking for.
  • In December 2024, Perfect Corp. acquired Wannaby Inc., an AR and computer vision technology company, The acquisition complements Perfect Corp.'s expertise in offering virtual try-on technology for fashion and beauty items.
  • In 2024, Fashionphile, a luxury resale site, saw profits jump by 67%. The company grew its retail footprint and entered wholesale overseas markets. In 2024, it also announced its first celebrity collaboration with Emma Roberts, who designed accessories capsule collection.

U.S. Fashion Ecommerce Market Analyst Viewpoint

  • The U.S. fashion ecommerce market is driven by the growing preference of millennials and Gen Z shoppers for online shopping. The widespread use of smartphones and ease of online payment options has boosted the adoption of digital shopping. Changing lifestyle patterns where people have less time to visit brick-and-mortar stores also works in favor of online retail. Moreover, the presence of exclusive online brands and the large variety of products available only on fashion ecommerce platforms is fuelling sales.
  • However, high return rates and shipping costs pose challenge to the margins of online fashion retailers. Customers return a significant portion of apparel and footwear bought online since physical validation of fit and feel is not possible. Navigating the complex state-level taxation also increases overheads. The fragmented market structure makes it difficult for retailers to achieve economies of scale.
  • The West coast, especially California and Washington emerge as major hubs for fashion ecommerce companies. The region already has a vibrant startup culture and access to tech talents. This encourages many new brands and DTC companies to launch operations from here. Meanwhile, Texas and Florida witness rising popularity due to lower costs of business and absence of state income taxes.

Market Segmentation:

  • By Product Type
    • Apparel
    • Footwear
    • Accessories
    • Beauty Products
    • Jewelry
    • Bags
    • Others
  • By End User
    • Men
    • Women
    • Kids
    • Unisex
  • By Price Range
    • Premium
    • Mid
    • Low
    • Luxury
  • By Category
    • Casual wear
    • Formal wear
    • Sportswear
    • Innerwear
    • Ethnic wear
    • Winter wear
    • Others
  • By Distribution Channel
    • Company owned websites
    • Marketplaces
    • Mobile apps
    • Social commerce
    • Brick and mortar stores
    • TV home shopping
    • Others
  • Top companies in U.S. Fashion Ecommerce Market:
    • Amazon
    • Walmart
    • Ebay
    • Macys
    • Gap
    • Nike
    • Target
    • Nordstrom
    • JCPenney
    • Kohls
    • Wayfair
    • Best Buy
    • Home Depot
    • Sephora
    • Ulta Beauty
    • Forever 21
    • H&M
    • Zara
    • Urban Outfitters
    • ASOS

Sources

Primary Research Interviews:

  • Senior Executives from Leading U.S. Fashion Ecommerce Platforms
  • Supply Chain Managers of Major Apparel Brands
  • Retail Analysts Specializing in Digital Consumer Behavior
  • Marketing Directors of Luxury Fashion Brands
  • Others

Databases:

  • IBISWorld U.S. Ecommerce Industry Reports
  • Euromonitor International Passport (Fashion Sector)
  • Others

Magazines:

  • Women’s Wear Daily (WWD)
  • Business of Fashion
  • Vogue Business
  • Others

Journals’:

  • Journal of Retailing and Consumer Services
  • International Journal of Electronic Commerce
  • Journal of Fashion Marketing and Management
  • Others

Newspapers:

  • The Wall Street Journal (Retail Section)
  • Retail Dive
  • Modern Retail
  • Others

Associations:

  • National Retail Federation (NRF)
  • American Apparel & Footwear Association (AAFA)
  • Interactive Advertising Bureau (IAB)
  • Others

Public Domain Sources:

  • U.S. Census Bureau (Ecommerce Sales Data)
  • Federal Reserve Economic Data (FRED)
  • Bureau of Economic Analysis (BEA) Industry Reports
  • Others

Proprietary Elements:

  • CMI Data Analytics Tool
  • Proprietary CMI Existing Repository of Information for Last 8 Years

Definition: The U.S. fashion ecommerce refers to the sale of fashion products, including clothing, footwear, accessories, jewelry, bags, beauty products, etc., through online channels in the United States. Ecommerce platforms like company websites, marketplaces, mobile apps and social commerce facilitate online fashion shopping. The U.S. fashion ecommerce market has shown robust growth in the last decade, driven by factors like increasing internet and smartphone adoption, time savings, discounts, and promotions offered by online retailers.

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Frequently Asked Questions

The U.S. Fashion Ecommerce Market is estimated to be valued at USD 144.97 Bn in 2025, and is expected to reach USD 336.86 Bn by 2032.

The CAGR of the U.S. Fashion Ecommerce Market is projected to be 12.8% from 2025 to 2032.

Increasing internet and smartphone adoption, convenience, discounts and promotions, growing social media influence, seamless payments, and tech innovations are major growth drivers for U.S. fashion ecommerce.

The apparel segment accounted for the largest share in the Market in 2023.

Amazon, Walmart, Ebay, Macys, Gap, Nike, Target, Nordstrom, JCPenney, Kohls, Wayfair, Best Buy, Home Depot, Sephora, Ulta Beauty, Forever 21, H&M, Zara, Urban Outfitters, and ASOS are the major players.

North America is expected to dominate the Market during the forecast period.
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