Record USD $241 billion in US holiday online sales for 2024

Adobe has announced that online spending in the United States during the 2024 holiday season reached USD $241.4 billion, marking a year-over-year increase of 8.7% and setting a new record in e-commerce.

According to data from Adobe Analytics, there was a notable milestone in mobile shopping, with a majority (54.5%) of online transactions conducted through smartphones, an increase from 51.1% in the previous year. Notably, Christmas Day saw the highest percentage of mobile-driven sales at 65%, compared to 63% in 2023.

Cyber Week alone accounted for USD $41.1 billion of the total online spending, reflecting an 8.2% increase from the previous year. Cyber Monday continued to be the premier day for online shopping, generating USD $13.3 billion in sales, further solidifying its status as the largest online shopping day of the year.

The influence of generative AI-powered chat bots as virtual shopping assistants has grown significantly, with traffic to retail sites via these bots increasing by 1,300% compared to last year. "The 2024 holiday season showed that e-commerce is being reshaped by a consumer who now prefers to transact on smaller screens and lean on generative AI-powered services to shop more efficiently," said Vivek Pandya, Lead Analyst at Adobe Digital Insights.

Another trend observed during the season was an all-time high in the usage of 'Buy Now, Pay Later' (BNPL) services, which contributed USD $18.2 billion in online spending, representing a 9.6% year-over-year increase. Adobe's survey indicates that smartphones account for 79.1% of BNPL transactions, with Cyber Monday being the peak period for such purchases.

Adobe's analysis also highlighted a surge in the sale of high-ticket items across categories such as electronics, appliances, and sporting goods. Discounts played a crucial role in attracting consumers, with electronics discounts peaking at 30.1%, toys at 28%, and apparel at 23.2%. The study indicated a direct correlation between price reductions and increased consumer demand, with every 1% drop in price leading to a 1.029% rise in online spending.

Hot sellers for the electronics category included TVs, smart watches, and Bluetooth headphones, while in apparel, consumers favoured puffer jackets and boots. The furniture sector saw an uptake in holiday decor and storage solutions, and popular toys included LEGO sets and Harry Potter figurines. The gaming sector saw high demand for Mario and Zelda games, among others. Dyson Airwrap and espresso machines also ranked among the top-selling items.

The survey also showed a growing impact of social media influencers, where their associated sales increased by 6% year-over-year, outperforming the growth in revenue share from social media overall. 37% of Gen Z respondents acknowledged purchasing items based on influencer endorsements.

Despite the decrease in curbside pickup usage to 17.5% from 18.4%, many shoppers continued to find value in the convenience of this fulfillment method, particularly on December 23, when it peaked at 37.8% of online orders.

During Cyber Week, both Thanksgiving and Black Friday saw significant spending increases, with Thanksgiving generating USD $6.1 billion and Black Friday achieving USD $10.8 billion in online sales.

The analysis indicates ongoing strong consumer spending online is driven predominantly by net-new demand rather than inflationary pressures, as ecommerce prices have continuously fallen for the past 27 months, decreasing by 2.6% year-over-year in November 2024.