Record-Breaking Holiday Shopping Season: U.S. Consumers Spend $241.4 Billion Online, Driven by Mobile and AI Innovations
The 2024 holiday shopping season set a new benchmark for e-commerce, with Adobe (Nasdaq:ADBE) reporting a staggering $241.4 billion in online sales from November 1 to December 31, marking an impressive 8.7% year-over-year (YoY) increase. This surge underscores the growing dominance of digital commerce and highlights key trends shaping consumer behavior, including mobile shopping, generative AI adoption, and flexible payment options.
Mobile Shopping Takes Center Stage
For the first time ever, smartphones accounted for the majority of online transactions during the holiday season, driving 54.5% of all purchases—a notable rise from 51.1% in 2023. On Christmas Day alone, mobile shopping peaked at 65%, up from 63% the previous year. This shift reflects consumers’ increasing comfort with small-screen transactions and retailers’ efforts to optimize mobile experiences.
Top Categories Propel Record Spending
Electronics, apparel, and furniture/home goods emerged as the top-performing categories, collectively accounting for 54% of total online spend. Electronics led the pack with $55.3 billion in sales (up 8.8% YoY), followed closely by apparel ($45.6 billion, up 9.9% YoY) and furniture/home goods ($29.2 billion, up 6.8% YoY). Meanwhile, grocery ($21.5 billion, up 12.9% YoY) and cosmetics ($7.7 billion, up 12.2% YoY) experienced the strongest growth, signaling a growing acceptance of purchasing everyday essentials online.
Other standout categories included sporting goods ($7.8 billion, up 7.4% YoY) and toys ($8.2 billion, up 7.8% YoY). Notably, demand for higher-ticket items surged, with electronics seeing a 48% increase in expensive goods sold, while sporting goods and appliances also saw significant gains.
Competitive Pricing Fuels Consumer Demand
Discounts played a pivotal role in attracting price-sensitive shoppers. Electronics offered discounts of up to 30.1%, while toys were marked down by 28%. Apparel, computers, and furniture/home goods saw discounts ranging from 19% to 23.2%. Adobe’s data revealed that for every 1% drop in prices, demand increased by 1.029%, contributing an additional $2.25 billion to overall online spending.
This heightened responsiveness to deals encouraged purchases of premium products, further fueling e-commerce growth. For instance, the share of expensive units sold rose by 21% across all categories, with sporting goods witnessing a remarkable 54% uptick.
Generative AI Revolutionizes Shopping Experiences
Artificial intelligence took center stage this season, with traffic to retail sites via generative AI-powered chatbots skyrocketing by 1,300% YoY. Cyber Monday saw even greater adoption, with usage climbing 1,950%. According to Adobe’s survey of 5,000 U.S. consumers, 70% of those who used generative AI found it enhanced their shopping experience. Popular uses included finding the best deals (20%), quickly locating specific items (19%), and receiving brand recommendations (15%).
“E-commerce is evolving rapidly, driven by tech-savvy consumers embracing AI tools and mobile platforms,” said Vivek Pandya, lead analyst at Adobe Digital Insights. “Retailers must innovate to meet these changing preferences.”
Rise of ‘Buy Now, Pay Later’ Options
Flexible payment methods gained traction, with ‘Buy Now, Pay Later’ (BNPL) contributing $18.2 billion to online sales—an 9.6% YoY increase. Smartphones facilitated 79.1% of BNPL purchases, highlighting their role in enabling seamless transactions. Cyber Monday emerged as the biggest day for BNPL, generating $991.2 million in sales.
Adobe’s survey indicated that electronics (57%) and apparel (51%) were the most common BNPL categories, followed by video games, groceries, and home goods.
Key Trends Shaping Retail Success
Hot Sellers Across Categories
- Electronics: TVs, Bluetooth headphones/speakers, smartwatches, and fitness trackers topped the list.
- Apparel: Puffer/fleece jackets, boots, purses/crossbody bags, and socks were popular picks.
- Furniture/Home Goods: Holiday decor, bedding sets, storage solutions, and accent chairs dominated sales.
- Toys: LEGO sets, card/board games, Tonie Audio Play figurines, and Harry Potter-themed merchandise captivated shoppers.
- Video Games & Consoles: Titles like Super Mario Odyssey and consoles such as PlayStation 5 and Xbox Series X ruled the charts.
Influencer Marketing Gains Momentum
Affiliate marketing, including social media influencers, captured 17.6% of revenue share—a 6% YoY increase—outpacing traditional social media channels. Influencers converted shoppers nine times more effectively than standard social media ads, with 37% of Gen Z respondents making purchases based on influencer endorsements.
Curbside Pickup Remains Convenient
Although curbside pickup usage dipped slightly to 17.5%, it remained a vital fulfillment option, peaking on December 23 when it accounted for 37.8% of orders.
Cyber Week Sets New Records
Cyber Week delivered $41.1 billion in online sales, up 8.2% YoY. Cyber Monday retained its title as the season’s largest shopping day, bringing in $13.3 billion. However, Thanksgiving ($6.1 billion, up 8.8%) and Black Friday ($10.8 billion, up 10.2%) showed stronger growth, indicating a preference for early deals.
Impact of Deflation on E-Commerce Growth
Despite concerns about inflation, Adobe’s Digital Price Index revealed consecutive declines in e-commerce prices for 27 months, with a 2.6% YoY decrease in November 2024. This deflationary trend suggests that record-breaking sales figures were driven by genuine consumer demand rather than inflated prices.
