Holiday Shoppers Break Records with $1.2 Trillion in Online Sales

 The 2024 holiday season set a remarkable new standard for the retail world, with global online sales reaching an unprecedented $1.2 trillion, including $282 billion in the U.S. alone. Despite this success, the high volume of returns – totaling $122 billion so far – has presented a fresh challenge for profit margins.

The surge in sales was fueled by mobile and social commerce and supported by innovative AI-powered tools that enhanced the shopping experience. These technologies influenced $229 billion – or 19% – of online orders globally, demonstrating how AI is reshaping consumer engagement.

Key Insights from the 2024 Holiday Shopping Season

Record-Breaking Online Sales

• Global sales: $1.2 trillion (+3% YoY).
• U.S. sales: $282 billion (+4% YoY).
• EU saw a modest growth of 1% YoY.

AI Enhances the Shopping Experience

• AI-driven tools influenced $229 billion of global online sales.
• AI adoption by retailers increased by 25% during the season, with customer engagement through AI-powered chat rising by 42% YoY.

Returns on the Rise

• $122 billion worth of purchases have been returned globally (+28% YoY), driven by trends like “try-on hauls” and bracketing.
• Salesforce projects returns will hit $133 billion, urging retailers to use AI to streamline return processes and retain customers.

Social Commerce and Mobile Dominate

• 20% of global holiday sales were generated via platforms like TikTok Shop and Instagram.
• Mobile orders grew to 70% of online sales, with Christmas Day seeing mobile’s peak at 79%.

Loyalty Programs Shine

• 72% of U.S. shoppers cited loyalty programs as a key reason for brand retention, highlighting their value over modest holiday discounts (average global discount rate: 22%).

Salesforce’s Role in Holiday Success

Salesforce played a pivotal role in empowering retailers:

• Commerce Cloud: Facilitated over 220 million online orders.
• Marketing Cloud: Delivered 378 billion marketing messages (+5% YoY).
• Einstein AI: Made 368 billion product recommendations (+30% YoY).
• Service Cloud: Resolved nearly 33.3 billion customer cases.

The future of retail is undoubtedly digital, driven by innovation and AI. As we look ahead, integrating these tools will be essential for addressing challenges like rising returns and ensuring customer satisfaction.

How did your holiday shopping experience shape up this year? Let us know in the comments!