Global eCommerce to Hit $6.8T by 2028—Web Hosts Urged to Evolve or Fall Behind

Web hosting providers are quickly adding eCommerce functionality to their platforms as online shopping races toward $6.8 trillion in sales by 2028, capturing a quarter of all global retail sales.

The U.S. market will also grow to $1.29 trillion in 2025, up from $1.19 trillion in 2024. At the same time, the web hosting market is expected to grow to $192.85 billion globally in 2025.

These numbers show it’s clear that web hosting and eCommerce are growing in parallel.

The main driver for this fast jump is none other than the younger generations: GoDaddy’s latest survey found that 54% of Gen Z and 50% of millennials prefer shopping online.

Alex Avramenko, the Head of Commerce Growth at GoDaddy, said it’s pointing to a trend of minimizing in-person interactions.

“Their preferences are driving a shift toward seamless, digital-first retail models that prioritize convenience and user experience above all else,” Avramenko explained to HostingAdvice.

Saulius Lazaravičius, VP of Product at Hostinger, is unsurprised by these figures, considering how Gen Z and millennials both grew up.

“Gen Z and Millennials are reshaping the eCommerce landscape faster than any previous generation,” he said. “Their digital fluency, demand for speed, simplicity, and convenience are driving the next evolution in online retail.”

These numbers are largely driven by Gen Z’s entrepreneurial mindset, with many launching websites to start their own side hustles or small businesses.

Ben Dutter, Chief Strategy Officer at Power Digital Marketing, is unsurprised by this.

“While individually they don’t have the buying power of previous generations, together they are greater than Gen X or Boomers in isolation,” Dutter said.

He added: “As with any era, the younger generations are the trendsetters and culturemakers, and more disruptive brands that are digitally native (i.e., ecommerce-focused) lean into those newer subcultures.”

Juvenal Pinheiro, Brand Design Manager of Spaceship, echoed the fact that younger generations are here for simple, straightforward shopping experiences.

But he also added that they like to see the proof of a product through reviews, ratings, and real-time purchase notifications.

“They want to find what they’re looking for, buy it in just a few clicks, and get clear information about prices and delivery times,” said Pinheiro. “Basically, they don’t want to waste time, and they value brands that make their lives easier.”

That same pattern applies to eCommerce. As trends evolve, so do consumer expectations — and what we know is that today’s consumers aren’t impressed by just having an online store.

Sarah McLouglin, the Vice President of Enterprise at Power Digital Marketing, said Gen Z is simply “reinventing what good looks like.”

“If someone has to dig through too many pages, deal with clunky navigation, or face unexpected checkout barriers, they’re gone,” said McLoughlin.

She added: “They also expect the payment options they already use, think digital wallets or Buy Now Pay Later, to be baked in as table stakes.”

Avramenko emphasized that startups and small businesses today are asking for far more than just traditional web hosting, demanding all-in-one solutions built to support how modern consumers shop.

“Nowadays, the options feel endless, but small business owners don’t have the time to invest learning multiple different platforms for each aspect of running their business,” Avramenko added.

According to a survey by inTandem, 90% of SMBs want combined capabilities in just one tool. And typically, once a customer relies on a platform for everything they need, they’re much less likely to churn.

Pinheiro added: “These days, people starting a business — especially younger founders — want to launch quickly, without spending time on a complicated setup. They want control, but without the complexity.”

Incorporating AI is a major encouragement, with hosting providers increasingly turning to artificial intelligence to meet the sophisticated demands of Gen Z entrepreneurs.

“With the advances in AI, we’re also seeing more small businesses looking for features that enable quick setup with scalability, and the ability to deliver a seamless customer experience without needing a dedicated tech team to manage it,” said Avramenko.

After launching integrated eCommerce services, Hostinger’s customer base grew by 57%. GoDaddy reported a 55% YOY jump in eCommerce transactions between 2024 and 2025.

Dutter noted that another main driver for eCommerce is that it’s been adopted into a mobile-centric platform.

More than 60% of global traffic comes from mobile devices, and many people use retail apps to shop their favorite stores.

As a result, sites need to be able to optimize for that major sector of users.

“Sites need to be slick, interactive, and have a lot of features that were considered reserved for ‘luxury’ sites a few years ago — concierge services, chatbots, videos on a diverse cast of models, augmented reality, and one-click payment options,” Dutter explained.

But there is a gap in how many smaller web hosting providers actually offer these sought-after eCommerce solutions, features, tools, and integrations.

Many hosts offer basic shared hosting packages but fall short of providing eCommerce plans that include basic necessities, including integrated payment processing or automated inventory management.

This as an opportunity. SMBs may churn in search of platforms that meet their needs, but providers that deliver integrated solutions will reap the rewards in revenue.

GoDaddy, for example, shows a major difference between business segments. Its Applications and Commerce segment grew 16% YOY, while the Core Platform segment managed only 3% growth.

The writing looks to be on the wall.

As younger generations continue to drive online retail growth, experts agree that traditional web hosting with eCommerce functionality may just become the new industry standard.

Providers that adapt to these trends will secure long-term loyalty from the next generation of online sellers.