Global holiday online sales soared to a record $1.2 trillion in 2024, with U.S. shoppers contributing $282 billion, according to new Salesforce data. The growth was powered by mobile and social commerce, alongside increased consumer spending after months of saving in early 2024.
Consumers were primarily shopping from their phones, accounting for nearly 70% of holiday online sales, up from 67% in 2023. Christmas Day marked the peak of mobile shopping, with 79% of orders placed via smartphones. Social media also strengthened its influence, driving 14% of ecommerce traffic and generating 20% of global holiday sales through platforms like TikTok Shop and Instagram.
Interestingly, artificial intelligence (AI) and agent technologies influenced $229 billion in global online sales. Retailers used these technologies for personalised product recommendations, targeted promotions, and conversational customer service. Generative AI adoption surged by 25% during the holiday season compared to earlier months, and consumers engaged with AI-powered customer service chats 42% more than in 2023.
When it comes to discounts, they were moderate but strategic, with U.S. markdowns averaging 23%, up slightly from the previous year. The makeup category saw the steepest discounts globally at 36%, while general apparel led in the U.S. at 33%.
“Retailers had a robust holiday season, but a 28% rise in the rate of returns compared to last year is a cause for some concern. 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,” said Caila Schwartz, Director of Consumer Insights at Salesforce.