
Holiday retail online sales surged to a record $1.2 trillion globally and $282 billion in the United States, an increase of 3 per cent year-over-year (YoY) globally, and a rise of 4 per cent YoY in the United States. For the European Union (EU), online sales grew 1 per cent YoY, according to a report by Salesforce.
The outperforming shopping season was powered by surges in mobile and social commerce alongside increased consumer spending after months of saving in the first half of 2024. However, shoppers have already sent back $122 billion in merchandise, Salesforce said in a press release.
Returns surged 28 per cent YoY to $122 billion, with AI aiding customer experiences.
Mobile orders rose to 70 per cent of purchases, and social commerce contributed 20 per cent of global sales.
Discounts averaged 23 per cent in the US.
“Retailers had a robust holiday season, but a 28 per cent rise in the rate of returns compared to last year is a cause for some concern,” said Caila Schwartz, director of Consumer Insights at Salesforce. “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.”
Both consumers and retailers leaned into the use of artificial intelligence (AI) and agents to enhance holiday shopping experiences through product recommendations and personalised order support, influencing $229 billion—or 19 per cent–of all online orders, a 6 per cent increase from 2023. Retail use of generative AI features like agents increased 25 per cent during the holiday season compared to September and October in 2024. Shoppers used AI-and agent-powered chat for customer service 42 per cent more than they did during the 2023 holiday season, added the release.
More than $122 billion of global purchases have already been returned, up 28 per cent from last year. This increase is partially due to trending consumer behaviours like try-on hauls and bracketing (buying an extra size above and below your standard size).
However, retailers will likely see this number grow to $133 billion – presenting an important opportunity for brands to use agents to make the returns process easier and more tailored to specific customer needs.
Seventy-five per cent of US shoppers are interested—and one-third are very interested—in using an AI agent to complete returns and exchanges.
Retailers using social commerce strategies saw 20 per cent of global holiday sales generated through platforms like TikTok Shop and Instagram.?? social media as a traffic-referring channel also grew 8 per cent YoY, driving 14 per cent of all traffic to ecommerce sites during the season.
While global mobile traffic share remained the same YoY (79 per cent), the percentage of orders placed grew to nearly 70 per cent, up from 67 per cent in 2023. Mobile orders reached their highest level on Christmas Day, accounting for 79 per cent of all orders, up from 77 per cent in 2023.
Seventy-nine per cent of shoppers in the US reported that, over the past year, store associates utilised mobile devices to assist them during in-store shopping. Overall, $842 billion in global sales and $195 billion in US sales were initiated by mobile devices.
Average discount rates for the entirety of the 2024 holiday season reached 23 per cent in the US (up 1 per cent YoY) and 22 per cent globally (up 2 per cent YoY). The general apparel segment saw some of the steepest discounts, averaging 30 per cent globally and 33 per cent in the US. Nearly three-quarters (72 per cent) of US shoppers said that the loyalty programs make them more likely to continue doing business with brands.
Commerce Cloud powered more than 220 million online orders while delivering fast, easy, and personalised digital experiences to shoppers. Marketing Cloud facilitated more than 378 billion marketing messages for businesses this holiday season, a 5 per cent YoY increase. Service Cloud helped customers field and resolve nearly 33.3 billion case interactions throughout the holidays.
Data Cloud ingested over 8.5 trillion records (+77 per cent YoY), processed nearly 1.4 quadrillion records (+29 per cent YoY), and helped retailers action over 840 billion profiles across various platforms and channels like Marketing Cloud, Yahoo and Google. Einstein provided more than 368 billion AI-powered product recommendations to shoppers this holiday season to personalise the customer experience, up 30 per cent from last year.
Salesforce data is based on an analysis of 1.5 billion shoppers and 1.6 trillion page views across the Salesforce Platform, highlights trends that shaped the holiday season.
Fibre2Fashion News Desk (SG)