US Online Shopping Surges to Record $282B During Holiday Season, Salesforce Reports

The holiday season is always a critical period for retailers, and this year was no exception. According to Salesforce, US online shopping hit a record $282 billion during the 2024 holiday season, marking a 4% increase from the previous year. This surge in online spending is a testament to the growing trend of consumers preferring the convenience and flexibility of shopping from their homes.



Several factors contributed to this impressive growth in online sales. Firstly, consumers have been saving more money throughout the year, leading to increased spending during the holiday season. Secondly, the influence of social media platforms like TikTok and Instagram has grown significantly, with retailers generating 20% of their global holiday sales through these platforms. Lastly, the use of AI and agents by retailers has played a crucial role in enhancing the shopping experience, driving sales, and improving customer retention.



However, the high return rates observed during the holiday season could dampen retailers' overall profit margins. According to Salesforce, more than $122 billion of global purchases have already been returned, up 28% from last year. This increase is partially due to trending consumer behaviors like "try-on hauls" and bracketing (buying an extra size above and below your standard size). Retailers will need to address this issue by embracing AI and agents to make the returns process easier and more tailored to specific customer needs.

In conclusion, the 2024 holiday season witnessed a significant surge in online shopping, driven by increased consumer spending, the influence of social media, and the adoption of AI and agents by retailers. While high return rates pose a challenge to retailers' profitability, embracing AI and agents can help minimize revenue losses on returns and reengage with shoppers. As we look ahead to the post-holiday season, retailers must focus on improving the customer experience, optimizing inventory management, and leveraging loyalty programs to retain customers and drive growth.