Breaking down the top online shopping categories

Quick insights

• E-commerce is divided into nine major categories, and each have unique characteristics and customer base.
• Certain e-commerce categories are more popular for online shopping in the U.S., driven by factors such as convenience, price and product ranges.
• Cash back rewards can be earned when shopping online, providing an opportunity to save money on purchases.

Online shopping has become a staple of our daily lives. But did you know that understanding e-commerce categories and cash back opportunities can make your shopping experience even more rewarding? Let's dive into the world of e-commerce categories and cash back rewards.

What are the major categories of e-commerce?

E-commerce can be divided into categories. Let’s take a quick look at some of the main e-commerce categories:

• Business to Business (B2B): Companies selling to other companies.
• Business to Consumer (B2C): Businesses selling to the general public through shopping cart software.
• Consumer to Consumer (C2C): An environment where consumers sell to other consumers.
• Consumer to Business (C2B): Consumers sell their products or services to businesses.
• Business to Administration (B2A): Businesses and public administrations or government agencies use central websites to exchange information and transact.
• Consumer to Administration (C2A): Individuals sell products or services to public administration or government agencies.
• Mobile Commerce (M-Commerce): Buying and selling of goods and services through wireless handheld devices such as smartphones and tablets.
• Facebook Commerce (F-Commerce): Buying and selling items through Facebook.
• E-commerce via Email: Businesses and consumers send purchase and selling requests and invoices via email.

Popular categories for online shopping

There are multiple categories of online shopping in the U.S. Let’s take a look at some of the most popular options:

• Fashion: Clothing, footwear and accessories are among the most popular items purchased online.
• Electronics: Consumers often turn to online retailers for competitive pricing on electronics.
• Books/music/videos: Digital media remains a top-selling category, with consumers downloading or streaming directly from online sources.
• Health and beauty: This category includes supplements to skincare and more.
• Toys and hobby items: Online retailers often offer a wider selection than physical stores, making this a popular category.

Which category is best for online selling?

Many of the most popular items to buy online are also the most popular to sell, but it’s not 1:1. Let’s shift gears a bit and take a look at some popular categories for selling goods online:

• Fashion: High demand and the ability to offer a wide range of styles and sizes make this a lucrative category.
• Electronics: High-ticket items like electronics can yield significant profits.
• Home goods: As consumers increasingly turn to online shopping for home decor and furniture, this category offers great potential.
• Specialty niche items: Unique or hard-to-find items can command higher prices and loyal customer bases. Examples include but are not limited to:
  • Eco-friendly products: Items like biodegradable phone cases or organic personal care products cater to environmentally conscious consumers.
  • Cultural or regional specialties: Items like authentic Japanese kimonos or handcrafted South American musical instruments can be difficult to find outside their native regions, making them a popular online option.
  • Hobby-specific gear: Equipment and accessories for niche hobbies, such as rock-climbing gear, high-end photography equipment or specialty baking tools can be popular categories for online sales.
• Homemade/craft items: Online shopping platforms have made it easy for crafters and artists to reach a global market. These unique, handmade items can often command higher prices due to their uniqueness and the craftsmanship involved.
• Antiques/collectibles: Items with historical significance or collectible items can be highly sought after online. Online platforms provide a marketplace for sellers of these items to reach a wide audience of collectors and enthusiasts.

How to earn cash back when shopping online

There are many ways to earn cash back and/or rewards when shopping online. Many credit cards offer the same cash back rewards for online purchases as they do in-store, but some cards offer enhanced earning rates at select online vendors. Also, many online retailers have their own rewards programs that provide cash back or points for purchases.

In addition to credit cards, there are mobile apps geared specifically toward earning rewards for online and mobile purchases. Similarly, there are browser extensions that automatically apply coupon codes at checkout and offer cash back rewards.

The bottom line

Understanding the landscape of e-commerce categories can help you make informed decisions about where to shop and sell online. Rewards opportunities can turn your online shopping into a more rewarding experience. With the right strategies, you can earn significant cash back on everyday purchases.