Holiday Spending 2023: Online Sales Hit $1.2T Record

Global Online Holiday Spending Reaches $1.2 Trillion

A substantial increase in online expenditure was observed during the recent holiday season, with global spending climbing by 3% to an unprecedented $1.2 trillion. Specifically, sales within the United States experienced a growth of 4%, reaching $282 billion.

Salesforce Report Details

These findings are based on a comprehensive report released by Salesforce. The report consolidated data from a variety of Salesforce cloud services, including Agentforce, Commerce Cloud, Marketing Cloud, and Service Cloud.

The analysis encompassed spending patterns of approximately 1.5 billion shoppers across numerous countries, covering the period from November 1st to December 31st, 2024.

Slightly Below Forecast, Key Dates Perform Well

While the overall figures were marginally below Salesforce’s initial projections – a predicted 2% growth ($1.19 trillion) – several key shopping dates demonstrated strong performance.

Black Friday transactions increased by 5%, achieving a record-breaking $74.4 billion in sales. Cyber Monday sales also saw growth, rising 3% to $49.7 billion.

Thanksgiving generated $33.6 billion in global sales, representing a 6% increase.

Rising Return Rates Pose a Challenge

However, a potentially offsetting factor is a notably elevated rate of returns. Consumers have already received $122 billion in refunds for returned merchandise.

This represents a 28% increase compared to the previous year, and the report suggests this figure could climb further to $133 billion.

AI's Growing Influence on Retail

Caila Schwartz, Salesforce’s director of consumer insights, identifies this return rate as “a cause for concern.” She also notes that other factors could mitigate these negative effects.

Salesforce, along with other industry players, is actively developing AI solutions for retailers. The core proposition is that investments in AI will result in reduced operational costs and more personalized customer experiences.

According to Salesforce, AI and agent-assisted interactions “influenced” holiday spending to the extent of $229 billion through targeted promotions, individualized support, and product suggestions – a 6% year-over-year increase.

Specifically, the adoption of AI-powered customer service solutions increased by 42%.

Looking Ahead: AI as a Critical Tool

“Retailers who have integrated AI and agent technologies are already realizing benefits,” Schwartz stated. “These tools will become even more vital in the coming year as retailers strive to minimize revenue losses from returns and re-engage with customers.”