Online Holiday Shopping Surges to $241 Billion in 2024, Up 8.7% From Last Year

In 2024, online holiday shopping reached an all-time high, with consumers spending a record $241.4 billion between November 1 and December 31. This marked an impressive 8.7% increase from the previous year, according to Adobe Analytics. The surge in online spending was driven by several factors, including strong discounts, the rise of AI chatbots, and the growing popularity of 'Buy Now, Pay Later' services.



Discounts played a significant role in driving sales of higher-priced items in categories such as electronics, appliances, and sporting goods. For every 1% decrease in price, demand increased by 1.029% compared to the 2023 holiday shopping season. This led to a $2.25 billion increase in online spending during the period. The increased sales from discounts are factored into the overall spending during the 2024 holiday shopping period. Discounts for electronics peaked at 30.1%, down slightly from 31% in 2023, while discounts for toys peaked at 28%, unchanged from a year earlier.



The use of AI chatbots and 'Buy Now, Pay Later' services also influenced consumer behavior and spending during the 2024 holiday season. Traffic to retail sites from generative AI-powered chatbots skyrocketed 1,300% compared to 2023, indicating a growing preference for AI shopping assistants. Consumers appreciated the convenience and efficiency of AI chatbots, with 70% of shoppers believing it enhances their shopping experience. Additionally, BNPL usage reached an all-time high, with sales totaling $18.2 billion, up 9.6% year-over-year. This trend allowed consumers to manage their finances more effectively, spreading out holiday spending and encouraging more purchases.



Mobile shopping, particularly on smartphones, played a significant role in the overall growth of online holiday sales in 2024. According to Adobe's report, mobile shopping accounted for 54.4% of total online transactions during the 2024 holiday season, up from 51.1% in 2023. This increase in mobile shopping contributed to a record $241.4 billion in online sales, an 8.7% increase from the previous year. Mobile shoppers spent a total of $131.5 billion between November 1 and December 31, 2024. The peak of mobile shopping occurred on Christmas Day, with mobile devices accounting for 65% of online sales, compared to 63% in 2023. This shift towards mobile shopping highlights the importance of optimizing e-commerce platforms for mobile devices to cater to the growing number of consumers preferring to shop on-the-go.



In conclusion, the 2024 holiday shopping season demonstrated the continued growth and evolution of the e-commerce industry. Strong discounts, the rise of AI chatbots, and the popularity of 'Buy Now, Pay Later' services contributed to a record-breaking online spending season. As we look ahead to the future, it is clear that the e-commerce landscape will continue to shape the retail industry, offering new opportunities for consumers and businesses alike.