Holiday shoppers spent a record $1.2tn online, Salesforce data shows

New data by global CRM provider, Salesforce has shown that holiday retail sales in December 2024 surged to a record $1.2 trillion globally and $282 billion in the United States, but high returns could dampen overall profit margins.

The report which was based on an analysis of 1.5 billion shoppers and 1.6 trillion page views across Salesforce platforms indicates that the better-than-expected holiday shopping season was powered by surges in mobile and social commerce alongside increased consumer spending after months of saving in the first half of 2024.

It indicates that as retailers increasingly embed AI into search experiences, search drove a nearly 3x better conversion rate. The report also shows that frontline workers also use conversational search during the holiday season to enhance efficiency and service.

It was observed that imaginative generative AI served up personalized product recommendations to store associates helping customers find the perfect gift. Service agents also benefited from generative AI as well.

They were used to provide personalized replies – while dealing with stressed-out customers looking for products, orders, and discounts.

However, the report indicates that shoppers have already sent back $122 billion in merchandise. This is up by 28% from the return rate that was recorded last year. This increase is partially due to trending consumer behaviours like “try-on hauls” and bracketing (buying an extra size above and below your standard size).

Both consumers and retailers leaned into AI and agents to enhance holiday shopping experiences through product recommendations and personalised order support, influencing $229 billion – or 19% – of all online orders.

Below are some major highlights of the Salesforce holiday spending report:

• Online sales reached $1.2 trillion globally and $282 billion in the U.S. This represents a 3% global year-over-year (YoY) increase and a 4% YoY increase in the U.S. Online sales also grew 1% YoY in the European Union (EU).
• Social media as a traffic-referring channel also grew 8% YoY, driving 14% of all traffic to e-commerce sites during the season. Retailers using social commerce strategies saw 20% of global holiday sales generated through platforms like TikTok Shop and Instagram.
• $229 billion of global online sales were influenced by AI and agents in the form of product recommendations, targeted offers, and conversational customer service support.
• 19% of holiday purchases were influenced by consumers engaging with AI and agents, a 6% increase from 2023.
• Retail use of generative AI features like agents increased 25% during the holiday season compared to September and October in 2024.
• Shoppers used AI- and agent-powered chat for customer service 42% more than they did during the 2023 holiday season.
• Salesforce projects that retailers will likely see this number grow to $133 billion – presenting an important opportunity for brands to use agents to make the returns process easier and more tailored to specific customer needs.

“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,” said Caila Schwartz, Director of Consumer Insights at Salesforce. “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.”

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