Record-Breaking Holiday Shopping Season: Global Online Sales Reach $1.2 Trillion, Salesforce Data Reveals
The 2024 holiday shopping season shattered records, with global online sales reaching an impressive $1.2 trillion, according to new data from Salesforce (NYSE: CRM), the world’s #1 AI-powered CRM platform. In the United States alone, online spending hit $282 billion, marking a robust 4% year-over-year (YoY) increase. However, while retailers celebrated strong sales figures, they also faced challenges, including a staggering $122 billion in returned merchandise, signaling potential risks to profit margins.
A Record-Breaking Shopping Season Fueled by AI and Mobile Commerce
The surge in holiday retail sales was driven by several key trends, including increased adoption of mobile commerce, social commerce, and AI-driven personalization. Consumers spent more freely after months of saving earlier in 2024, contributing to the record-breaking numbers. Notably, AI and agents played a pivotal role in shaping the shopping experience, influencing $229 billion—or 19%—of all online orders globally. This represents a 6% increase from 2023, highlighting the growing importance of AI in retail.
“Retailers had a robust holiday season, but a 28% rise in return rates compared to last year is a cause for 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 brands aim to minimize revenue losses on returns and reengage with shoppers.”
Key Insights from Salesforce’s 2024 Holiday Shopping Report
Based on an analysis of 1.5 billion shoppers and 1.6 trillion page views across the Salesforce platform, here are the top trends that defined the 2024 holiday shopping season:
1. Online Sales Reach New Heights
- Global online sales reached $1.2 trillion, a 3% YoY increase.
- U.S. online sales grew by 4% YoY to $282 billion.
- The European Union (EU) saw a modest 1% YoY increase in online sales.
2. AI and Agents Transform Retail Experiences
- $229 billion of global online sales were influenced by AI and agents, which provided product recommendations, targeted offers, and conversational customer service support.
- Shoppers engaged with AI and agent-powered chat 42% more than during the 2023 holiday season.
- Retailers’ use of generative AI features like agents surged by 25% during the holidays compared to September and October 2024.
3. Returns Surge Amid Changing Consumer Behavior
- Over $122 billion worth of merchandise has already been returned globally, up 28% from last year.
- Trends like “try-on hauls” and bracketing (buying multiple sizes to find the right fit) contributed to the spike in returns.
- Salesforce projects this number could grow to $133 billion, presenting an opportunity for retailers to streamline the returns process using AI-powered agents. According to Salesforce survey data, 75% of U.S. shoppers are interested in using AI agents for returns and exchanges, with one-third expressing strong interest.
4. Social Commerce Gains Momentum
- Social commerce accounted for 20% of global holiday sales, driven by platforms like TikTok Shop and Instagram.
- Social media as a traffic-referring channel grew by 8% YoY, driving 14% of all traffic to e-commerce sites during the season.
5. Mobile Commerce Dominates
- Mobile traffic remained steady at 79% globally, but mobile orders grew to nearly 70%, up from 67% in 2023.
- On Christmas Day, mobile orders peaked at 79%, reflecting the convenience of shopping on smartphones.
- Survey data revealed that 79% of U.S. shoppers encountered store associates using mobile devices to assist them in-store over the past year.
6. Discounts Remain Modest
- Average discount rates were 23% in the U.S. (up 1% YoY) and 22% globally (up 2% YoY).
- Verticals with the highest global discounts included:
- Makeup (36%)
- General apparel (30%)
- Skincare (28%)
- In the U.S., general apparel (33%) and health and beauty (29%) led the pack in discount rates.
Despite modest discounts, loyalty programs emerged as a powerful tool for customer retention. Nearly 72% of U.S. shoppers surveyed said loyalty programs make them more likely to continue doing business with brands.
Salesforce Powers the 2024 Holiday Season
Salesforce’s suite of tools played a crucial role in helping retailers deliver seamless holiday experiences:
- Commerce Cloud: Powered over 220 million online orders, enabling fast, easy, and personalized digital shopping experiences.
- Marketing Cloud: Facilitated more than 378 billion marketing messages, a 5% YoY increase.
- Service Cloud: Assisted in resolving nearly 33.3 billion case interactions during the holidays.
- Data Cloud: Ingested over 8.5 trillion records, processed nearly 1.4 quadrillion records, and helped retailers action 840 billion profiles across various platforms.
- Einstein: Provided over 368 billion AI-powered product recommendations, a 30% increase from last year.
Looking Ahead: Opportunities for Retailers in 2025
While the 2024 holiday season showcased remarkable growth, it also highlighted areas for improvement. High return rates and evolving consumer expectations underscore the need for retailers to invest in AI-driven solutions that enhance personalization, streamline operations, and improve the post-purchase experience.
For example, leveraging AI agents to simplify returns and exchanges could help retailers recover lost revenue while building stronger relationships with customers. Additionally, the continued rise of mobile and social commerce presents opportunities for brands to engage shoppers through innovative channels.
As retailers prepare for 2025, the insights gleaned from this holiday season will serve as a roadmap for navigating the challenges and opportunities of an increasingly digital-first retail landscape.
Explore Further Insights
- Compare this data to Salesforce’s 2024 holiday season forecast.
- Visit the Holiday Shopping HQ for real-time results.
- Learn how Saks elevates luxury shopping with unified data and AI agents.
Salesforce’s holiday insights are based on aggregated data from over 1.5 billion global shoppers across 89 countries, with a focus on 18 key markets. These findings reflect broader retail industry trends and are not indicative of Salesforce’s financial performance.
By embracing AI, optimizing mobile experiences, and addressing consumer pain points like returns, retailers can position themselves for sustained success in the years to come.
