Online Shopping Grew Nearly Twice as Fast as Retail in Q2

U.S. retail e-commerce sales reached an estimated $340.2 billion in the second quarter of 2026, rising 12.2% from a year earlier and taking a slightly larger share of the nation’s retail market.

The Census Bureau’s Quarterly Retail E-Commerce Sales Report, released August 18, estimated that online sales represented 17.1% of total U.S. retail sales in the quarter. That was up from 17.0% in the first quarter and 16.3% in the second quarter of 2025.

The figures are preliminary and seasonally adjusted, but they are not adjusted for inflation. The Federal Reserve Bank of St. Louis’ FRED presentation reports the seasonally adjusted estimate at $340.244 billion.

Online sales outpaced retail overall

E-commerce sales increased 3.8% from the first quarter of 2026. Total retail sales rose 2.9% over the same period, reaching an estimated $1,986.5 billion.

On the year-over-year comparison, total retail sales increased 6.7%. Dividing the 12.2% e-commerce increase by the 6.7% increase in total retail sales shows that online sales grew about 1.8 times as fast as retail sales overall.

That comparison describes the pace of growth, not the size of the two markets. E-commerce accounted for 17.1% of retail sales, meaning most retail spending—about 82.9%—remained outside the e-commerce category in the second quarter.

What the Census measure counts

The Census Bureau’s definition is broader than simply counting purchases paid for through a website or app. It includes sales when a buyer places an order or negotiates the price and terms through the internet, a mobile device, an extranet, electronic data interchange, email or another comparable online system.

Payment does not necessarily have to occur digitally. The measure focuses on the online ordering or negotiated-sale process.

The report covers retail-trade businesses, including store retailers and nonstore retailers. Traditional retailers may report online activity separately from store operations depending on how their e-commerce divisions and fulfillment systems are organized.

What the report does not show

The report is national. The Census Bureau says this quarterly series is designed to produce statistics at the national level only, so it cannot show which states, cities or communities had the largest online-sales gains.

E-commerce is also already included in total retail sales. The $340.2 billion estimate should not be added to the $1,986.5 billion total as if it represented separate spending.

The figures are reported in current dollars and are not adjusted for inflation. A 12.2% annual increase therefore does not establish that consumers bought 12.2% more goods or services after accounting for price changes.

The Census retail survey also excludes businesses’ non-retail operations such as travel, ticketing and financial services. That means the series should not be read as a measure of every transaction completed online.

What it means for retailers and shoppers

For retailers, the data point to the continued importance of digital ordering, online product comparison and fulfillment operations alongside physical stores. The release does not identify why online sales grew or prove that consumer behavior has permanently shifted.

For shoppers, the practical takeaway is that online retail represented about 17 cents of every retail dollar in the second quarter. The channel was growing faster than retail overall, but most retail spending still occurred outside the e-commerce category.

Because the release is preliminary, later revisions may change the estimate or growth rates. FRED lists November 19, 2026, as the next scheduled release date. That release is expected to provide the next quarterly look at the online share and growth rate, while later revisions and other retail data will help show whether the second-quarter pattern persists.

Sources

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