Global and US online holiday sales experienced growth in 2024, reflecting changing behaviors of consumers and the increasing power of artificial intelligence (AI) in e-commerce. US holiday sales during the two last months of the year boosted to an all-time high of $282 billion. To get the whole picture, it should be mentioned that worldwide sales increased 3% to $1.2 trillion.
A surge of return volumes overshadowed the record-breaking sales: consumers decided that their purchases were a mistake and brought back $122 billion worth of merchandise. The number of returns went up by 28% compared to the same time last year.
Both retailers and consumers relied on AI and agents to optimize the holiday shopping experience. The only difference is that the first did it on purpose, while the latter might have been unaware of that helper. It is interesting that 19% of all online sales were made thanks to algorithm-powered product recommendations and personalized order support, according to Salesforce. Consider this: a shopper might have started their day unsure of what to buy but ended it with the ideal purchase, thanks to AI-driven suggestions customized to their preferences.
Following pricing trends, the rate of discounts for general apparel (which includes jewelry) in the US was 33%, the highest that health and beauty followed with 29% and home goods and decor with 18%. These competitive discounts proved critical in powering holiday sales. Salesforce derived those insights from an analysis of data from one and a half billion global shoppers.
Summarizing everything above, it is clear that retailers are concerned due to an increase in the return rate, and even a strong holiday season couldn’t make it easier. This issue made companies ask the following question: how can AI not only drive sales but also address possible refunds in future? As we can see, last year has put traders in front of new challenges and the need to use all mechanisms to make the consumer journey pleasant and to ensure growth for their businesses. Imagine a future where returns are minimized not by stricter policies but through predictive innovative tools that help customers make the right choice. We suppose 2025 will be a year to find solutions and balance in the e-commerce sector.
