Online shopping is growing faster again. The US Census Bureau estimates that e-commerce sales reached $340.2 billion in the second quarter of 2026, up 12.2% from a year earlier, while total retail grew 6.7%. Online now accounts for 17.1% of all US retail sales, up from 16.3% a year before.
Two cautions when reading those numbers. Census figures aren’t adjusted for inflation, so part of the growth is higher prices. And Amazon moved its Prime Day sale into June in 2026, which likely pulled some spending into the second quarter. Even so, the direction is clear: more of every retail dollar is moving online.
What that means for a small online business
The market is growing, but so is competition. It has never been easier or cheaper to open an online store, which means almost every product category is crowded. Big marketplaces win on price and speed. Small sellers win on specialization: a specific customer, a specific problem, a distinctive product or brand.
General merchandise is booming; clothing is slower. In the second quarter of 2026, online general merchandise sales grew far faster than clothing and accessories. Fashion is one of the most crowded and return-heavy categories for new sellers.
AI is changing how people shop. Retailers are starting to see sales through AI shopping assistants. Clear product titles, detailed descriptions, real photos and honest reviews help both people and AI tools understand what you sell.
Ways to sell online
| Business | Startup cost | Why it works now |
|---|---|---|
| Print-on-demand business | Under $5,000 | No inventory; test designs cheaply |
| Niche online store | $5,000 to $25,000 | Own a specific category and customer |
| Marketplace selling | $1,000 to $10,000 | Instant access to buyers, but higher fees and less control |
| Digital products (templates, courses, guides) | Under $5,000 | No shipping; high margins if you have expertise |
Startup costs are Advanton estimates covering a store platform, samples or starting inventory, photography and initial advertising.
Rules to know
Sales tax. Since the Supreme Court’s 2018 South Dakota v. Wayfair decision, states can require online sellers to collect sales tax once their sales into that state pass a threshold, even without a physical presence there. Marketplaces usually collect tax for their sellers; on your own store, it’s your job. Sales tax software can track this.
Returns and consumer rules. Publish a clear return policy, ship when you say you will, and follow the FTC’s rules on advertising and reviews.
Risks to plan for
Customer acquisition costs. Paid ads can eat your margin. Build email lists, content and repeat customers from the start.
Platform dependence. If all your sales come from one marketplace or one ad channel, a single policy change can hurt. Diversify over time.
Our take
E-commerce is growing again, but success comes from focus, not from opening a store and hoping. Pick a narrow niche you understand, test demand cheaply, and build direct relationships with customers you can sell to again.
Ready to start? Follow the Start a Business A–Z guide.
Sources
- US Census Bureau, Quarterly Retail E-Commerce Sales, Q2 2026, via Practical Ecommerce
- Federal Reserve Bank of St. Louis (FRED), E-Commerce Retail Sales as a Percent of Total Sales
Last reviewed October 17, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
