2024 Holiday Shopping Season Reaches Record $241.4 Billion Driven by Mobile Purchases and AI Technology

The 2024 holiday shopping season has set a milestone in e-commerce, achieving $241.4 billion in online sales, a year-over-year increase of 8.7%. According to data from Adobe Analytics, this shopping period, which spans from November 1 to December 31, was the most mobile in history, with smartphones accounting for 54.5% of online transactions, up from 51.1% in 2023.


The Rise of Mobile Shopping and Key Categories

During this season, 15 days recorded daily sales exceeding $4 billion, surpassing the 11 days seen the previous year. Christmas Day (December 25) was the day with the highest participation in mobile shopping, reaching 65% of online sales.

Three categories accounted for more than half of total sales:

  • Electronics: $55.3 billion (+8.8% year-over-year).
  • Apparel: $45.6 billion (+9.9%).
  • Furniture and Home Goods: $29.2 billion (+6.8%).

Other categories with notable growth include:

  • Food: $21.5 billion (+12.9%).
  • Cosmetics: $7.7 billion (+12.2%).
  • Toys: $8.2 billion (+7.8%).
  • Sporting Goods: $7.8 billion (+7.4%).

Competitive Discounts and a Shift Towards High-End Products

Aggressive promotions fueled demand, with discounts reaching significant peaks:

  • Electronics: 30.1%.
  • Toys: 28%.
  • Televisions: 24.2%.
  • Appliances: 19.2%.

For every 1% decrease in prices, demand grew by 1.029%, generating an additional $2.25 billion in online spending. Additionally, consumers opted for high-end products, increasing the proportion of more expensive goods sold by 21%, with highlights including:

  • Sporting Goods (+54%).
  • Electronics (+48%).
  • Appliances (+35%).

Artificial Intelligence and Its Impact on E-Commerce

Generative AI bots played a crucial role, increasing traffic to retail sites by 1,300% year-over-year, with a growth of 1,950% during Cyber Monday. According to an Adobe survey, 70% of consumers who used generative AI found it improved their shopping experience by helping them locate products, find deals, and receive personalized recommendations.


Growth of the ‘Buy Now, Pay Later’ Model

The payment method “Buy Now, Pay Later” (BNPL) reached a record high, contributing $18.2 billion in online sales, a year-over-year increase of 9.6%. The majority of BNPL transactions (79.1%) were conducted via smartphones, highlighting its popularity among consumers seeking financial flexibility.


Seasonal Highlights

Top-Selling Products:

  • Electronics: Televisions, Bluetooth headphones, smartwatches.
  • Apparel: Puffer jackets, boots, handbags.
  • Furniture and Decor: Holiday ornaments, bedding, storage solutions.
  • Toys: LEGO sets, board games, Harry Potter action figures.
  • Video Games: Mario Kart, Spiderman 2, consoles like Xbox Series X and PlayStation 5.

Influencer Influence:
The affiliate channel, which includes influencers, accounted for 17.6% of revenue, growing by 6% year-over-year. Influencers proved to be 9 times more effective at converting users into buyers compared to general traffic from social media.

In-Store Pickup:
Although its usage slightly decreased to 17.5% of online orders (down from 18.4% in 2023), this method remains popular for its speed and convenience, peaking on December 23.


Growth Amid Inflation

Despite inflation, e-commerce prices have fallen for 27 consecutive months, with a 2.6% year-over-year reduction in November 2024, according to Adobe’s Digital Price Index. This demonstrates that growth in spending is not solely due to higher prices but rather significant net demand.


Conclusion

The 2024 holiday season not only broke records in online sales but also marked a shift in consumer habits towards mobile platforms, flexible payments, and AI integration. These trends underscore the need for retailers to adapt their strategies to capture the attention of an increasingly digital and demanding consumer.

via: Adobe

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