Customer relationship management services provider Salesforce reported online retail sales during the 2024 holidays surged to a record $1.2 trillion globally and $282 billion in the United States, but the company noted subsequently high product returns could dampen overall profit margins.
According to a Salesforce report, surges in mobile and social commerce alongside increased consumer spending after months of saving in 2024’s first half drove the better-than-expected holiday shopping season.
Consumers and retailers tapped AI and agents to help with holiday shopping via product recommendations and personalized order support, with those aids influencing $229 billion, or 19%, of all online orders, according to Salesforce.
Overall, $842 billion in global and $195 billion in U.S. online sales started on mobile devices, Salesforce pointed out. Global mobile traffic share remained unchanged from the 2024 holiday season at 79%, while the proportion of orders placed by shoppers grew to 70%, up from 67% in 2023. Mobile orders peeked on Christmas Day, accounting for 79% of all orders. Then, 79% of U.S. shoppers said a store employee used a mobile device to help them in-store in the last year.
The average discount rates for the 2024 holiday season reached 23% in the U.S., up one point, and 22% globally, up two points year over year, Salesforce maintained. The average discount rate on home goods and decor was 18%, while the deepest break that occurred across product categories was for makeup at 36%.
Although sales gained in the holidays, shoppers have already returned $122 billion in merchandise. The company projects retailers likely will see the number grow to $133 billion. The return total so far is 28% more than the return volume generated during the holiday season a year ago. This is partially because of trending consumer behaviors, including “try-on hauls,” where shoppers expect to return at least some of the goods ordered and bracketing or buying an extra size above and below a standard size.
In further detailing its report observations, Salesforce noted:
- The $1.2 trillion spent online in the holidays season globally and $282 billion spent in the U.S. during the period represented year over year sales increases of 3% worldwide and 4% in the United States.
- The $229 billion of global online sales influenced by AI and agents influenced was up 6% from 2023.
- Shoppers used AI- and agent-powered chat for customer service 42% more than they did during the 2023 holiday season.
- Three quarters of U.S. shoppers are interested, and one-third are very interested, in using an AI agent to complete returns and exchanges.
- Retailers employing social commerce strategies saw 20% of global holiday sales generated through platforms such as TikTok Shop and Instagram.
- Social media as a traffic-referring channel grew 8% year over year, driving 14% of all visits to e-commerce sites during the season.
- Loyalty programs make a difference as 72% of U.S. consumers said such initiatives made them more likely to continue doing business with brands.
The data used in the report came from an analysis of 1.5 billion shoppers and 1.6 trillion page views across the Salesforce platform in the period of November 1 to December 31, 2024.
“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, Salesforce director of consumer insights. “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.”
