Global online sales during the holiday season reached a record-breaking $1.2 trillion in 2024, with U.S. consumers contributing significantly to this surge by spending $282 billion. This remarkable growth can be attributed to the increasing popularity of mobile and social commerce, as well as heightened consumer spending patterns following several months of savings earlier in the year, according to the latest data from Salesforce.
A substantial shift towards mobile shopping was observed, as consumers used their smartphones for nearly 70% of global orders, marking an increase from 67% in 2023. Christmas Day emerged as the pinnacle of mobile commerce, with 79% of all orders placed via smartphones. The influence of social media on online shopping was also notable, generating 14% of ecommerce traffic and accounting for 20% of global holiday sales. Notably, platforms like TikTok Shop and Instagram played crucial roles in this aspect.
A significant feature of this season's shopping was the impact of artificial intelligence (AI) and agent technologies, which collectively contributed approximately $229 billion to worldwide online sales. Retailers increasingly leveraged these technologies to provide personalised product recommendations, targeted promotions, and conversational customer service experiences. There was a noteworthy 25% increase in generative AI adoption during the holiday season compared to previous months, and consumers engaged with AI-powered customer service chats 42% more frequently than in 2023.
Analysis of pricing strategies revealed that while discounts were moderate, they remained strategically important, with U.S. markdowns averaging around 23%, a slight increase from the previous year. The makeup category saw the steepest markdowns globally at 36%, whereas general apparel led the U.S. market with average discounts of 33%.
Caila Schwartz, Director of Consumer Insights at Salesforce, stated, “Retailers had a robust holiday season, but a 28% rise in the rate of returns compared to last year is a cause for some concern. Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimise revenue losses on returns and reengage with shoppers.”
As businesses continue to adapt to evolving consumer behaviours and leverage technological advancements, the landscape of retail and ecommerce is expected to undergo further transformation in the coming months and years.
Source: Noah Wire Services