Retail App Downloads Q1 2023: Chinese apps dethroned Amazon, Walmart in the US

Temu emerged as the most downloaded retail app in the United States in Q1 2023, dethroning Amazon. The notable shift in the rankings of retail apps based on download and monthly active user metrics in the US reflects the dynamic nature of consumer preferences and the fiercely competitive landscape of the online retail sector.

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Retail is one of the fastest-growing industries in the world. With the advent of the digital age, retailers are embracing a multi-channel approach to tap into wider markets, combining the power of physical stores and online platforms. Surprisingly, amongst the giants like Amazon, Walmart, and Alibaba, it’s the Chinese retailers who are making the loudest noise. According to Sensor Tower’s latest report, Temu and SHEIN emerged as the top retail apps by downloads in the United States in Q1 2023, leaving industry giants Amazon and Walmart in their wake.

Let us have a look at the list of top retail apps in the United States by downloads and monthly active users, and how their rankings have changed in the first quarter that ended March 31, 2023.

Top Retail Apps by Downloads in the US

  1. Temu tops the list of most downloaded retail apps in the US in Q1 2023, dethroning Amazon. The newly launched Chinese online retailer’s ranking jumped from 7th place in 2022 to 1st place in Q1 2023, showing remarkable growth and the increasing popularity it enjoys among US consumers.
  2. SHEIN has been consistent with its ranking since 2021, securing second place in the list of top retail apps in the US by downloads in Q1 2023. The immense popularity of SHEIN among teens and young adults comes as no surprise, given that this Chinese online fashion retailer offers the most stylish yet affordable women’s clothing and accessories worldwide.
  3. The retail giants, Amazon.com and Walmart, renowned as the world’s top retailers in terms of revenue and market capitalization, have experienced a significant shift in demand among US consumers. Amazon, which was ranked 1st in both 2021 and 2022, now ranks 3rd on the most downloaded retail apps in the US in Q1 2023. Similarly, Walmart slipped from 3rd to 4th place.
  4. Nike, the renowned sportswear brand, has been steadily slipping down the list of most popular retail apps in the US based on downloads. Every year, it drops one position, from fifth in 2021, to fourth in 2022, and seventh in Q1 2023.
  5. Alibaba, the prominent Chinese e-commerce giant, has made its appearance in the top ten for the first time in Q4 2022 and maintained its position in Q1 2023.
Source: Sensor Tower

However, the rankings of top retail apps in the United States differ when considering usage by monthly active users. While download numbers provide valuable insights into initial popularity, the number of app sessions and time spent are equally important factors to consider.

It’s possible that certain apps that may not have the highest download numbers could have a strong user base and high engagement levels, propelling them to higher rankings in terms of monthly active users. Therefore, to have a comprehensive understanding of the retail app landscape, it’s important to consider both download numbers and the usage patterns of monthly active users.

Top Retail Apps by Monthly Active Users in the US

  1. Amazon’s continued reign as the top retail app in the United States by monthly active users during 2021 and 2022 is impressive. The year 2023, so far, is no exception either as it tops the list in the first quarter as well. Amazon’s reputation for reliable and timely product delivery, coupled with its exceptional customer care support, has strengthened its position as the most trusted brand among Americans.
  2. In Q1 2023, the rankings for eBay, SHEIN, and Walmart remain unchanged, maintaining their respective positions as the second, third, and fourth retail apps in the United States based on monthly active users (MAUs). This stability in their rankings suggests consistent user engagement and ongoing popularity among consumers.
  3. Interestingly, Temu, which was launched in September 2022 in the US, breaks into the list in Q1 2023, pushing out the GOAT app from the top 10.
Source: Sensor Tower

In a nutshell

The significant change in the rankings of retail apps by downloads and by MAUs in the US reflects the evolving consumer preferences and the intense competition within the online retail industry. While the retail apps with the most downloads seem to be relatively new players, a contrasting picture emerges when we explore the retail apps capturing the most monthly active users in the first quarter of 2023.

Interestingly, the US retail e-commerce sales are estimated to clock 8% YoY growth to $272.6 billion in Q1 2023, according to the Census Bureau of the Department of Commerce data.

The surge in downloads for retail apps like Temu can be attributed to the increasing number of smartphone users, particularly teens and young adults, actively downloading it. However, it’s important to note that the high download numbers do not necessarily indicate that users are spending more time on these apps or keeping them on their smartphones.

On the other hand, well-established retailers like Amazon, Walmart, and eBay have been dominating the list of top retail apps by MAUs in the United States. These retailers have successfully built a strong reputation and customer loyalty over time.

Amazon, in particular, serves as the primary starting point for 50% of surveyed US consumers embarking on their online shopping journey. One of the factors contributing to the platform’s success is its emphasis on customer reviews.

SHEIN, however, stands out as an exception. It has achieved popularity in both downloads and usage, making it the most loved app among users since 2019. This could be attributed to SHEIN’s ability to cater successfully to the preferences of its target audience, especially in the realm of affordable and stylish women’s clothing and accessories.

SHEIN has not only emerged as the leader in terms of downloads among Women’s Apparel apps but has also clocked an exceptional user retention rate, which has resulted in a larger and more engaged user base compared to its competitors. Remarkably, approximately 34% of SHEIN users continue to engage with the app the day after downloading it, indicating a high level of immediate interest and satisfaction. While this number decreases to around 18% after a week and approximately 8% after 90 days, SHEIN still retains a significant portion of its user base over an extended period.

In contrast, its competitors, such as PrettyLittleThing, ASOS, Cider, and Chic Me, report much lower retention rates falling below 5% within 90 days.

So, as the battle for dominance rages on, keep a close eye on the dynamics of the evolving retail app market in the US. Will the newcomers emerge as undisputed market leaders with their flashy downloads, or will the seasoned players maintain their reign through a legacy of customer trust? Only time will reveal the final victor in this captivating retail saga.

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