AI Dominates E-commerce: Black Friday Online Spending Accelerates to Another Record High, with More to Come
2min read This Thanksgiving holiday, Americans, once again, engaged in starved-spending. Bolstered by e-commerce and AI, Black Friday online sales first time surpassed the $10 billion mark and show signs of continued growth.
Online retail sales in the U.S. on Black Friday hit a new high of $10.8 billion, a 10% increase compared to the previous year, according to Adobe Analytics. This figure is more than double that of 2017.
What were people buying?
Data shows that toy consumption was the primary driving force behind Black Friday online sales, with total toy sales increasing by 622% compared to average daily sales earlier in the fall. Jewelry sales grew by 561%, home appliances by 476%, apparel by 374%, and electronics by 334%.
Popular toys included Harry Potter LEGO sets, Wicked toys, card and board games, Disney Princess toys and dolls, and Cookeez Makery oven playset. Other "best-selling" items included cosmetics and skincare sets, Bluetooth speakers and earphones, smartwatches, perfumes, and espresso machines.
This consumer frenzy wasn't limited to Black Friday. Adobe reports that online sales on Thanksgiving Day also set a record, reaching $6.1 billion, a 9% year-over-year increase.
Strong Economy, E-commerce, and AI Drive Online Retail
A robust economy driving consumer spending is part of the equation, but this Black Friday was more significantly influenced by the rise of e-commerce, personalized recommendations powered by generative AI across platforms, and discounts.
Adobe noted that over half (55%) of Black Friday's online sales came from mobile devices, with generative AI chatbots playing a crucial role. Overall retail website traffic surged 18 times year-over-year. These AI bots mimicked human conversation, helped shoppers find deals, compare products, and speed up the checkout process, becoming indispensable helpers in this year's online shopping frenzy.
By harnessing the value of AI and agentic conversations, retailers are better equipped to serve the needs of their shoppers and drive them to the buy button," said Caila Schwartz, Salesforce's director of consumer insights, in a statement.
Other agencies reported similar data, suggesting even stronger online consumption trends. Mastercard stated that, compared to last year, Black Friday online retail sales grew by 14.6%, while in-store sales saw a slight increase of 0.7%, leading to an overall retail sales growth of 3.4% this year.
Shoppers are making the most of seasonal deals and enjoying a balance of experiences spending and gifts for all loved ones," said Steve Sadove, senior adviser for Mastercard and former CEO and chairman of Saks Incorporated. "They're more strategic in their shopping though, prioritizing promotions that they believe hold the greatest value — opening their wallets, but with more intentional distribution."
It is worth noting that part of the strong consumer spending this time may be driven by concerns over potential tariffs imposed by Trump. To avoid increased tariffs on imported goods starting January 20th next year, consumers began to stock up early and fulfill their wishes. However, in such a strong economy, consumers seem willing to keep spending.