US online holiday sales grew 4% year on year as consumers spent money they had been saving during the first half of 2024.
Revenue came to a record $282 billion for the November-to-December holiday period, while global sales rose 3% to $1.2 trillion, according to data Salesforce released Monday. However, overall profit might take a hit from high return volumes, which increased 28% year on year to $122 billion.
Both consumers and retailers increased their use of artificial intelligence (AI) and agents to enhance holiday shopping through product recommendations and personalized order support, influencing 19% of all online sales, Salesforce noted.
“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 minimize revenue losses on returns and reengage with shoppers.”
General apparel, which includes jewelry, had the highest discount rates in the US, at 33%, while health and beauty saw 29% reductions and home goods and décor 18%. Salesforce collected data from 1.5 billion shoppers, it noted.
Image: Someone purchasing jewelry online. (Shutterstock)
