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SAN FRANCISCO — Retailers worldwide achieved a record $1.2 trillion in global holiday sales in 2024, including $282 billion in the United States, according to a new report from Salesforce. This marks a 3% year-over-year (YoY) increase globally and a 4% YoY rise in the U.S., exceeding projections. However, a surge in product returns, totaling $122 billion globally so far, threatens to undercut profitability.
Salesforce attributed the season's success to increased consumer spending, mobile commerce, social media-driven sales, and the integration of AI tools. AI-powered product recommendations and chatbot services influenced $229 billion—or 19%—of global online sales, representing a 6% increase from 2023. Shoppers used AI chat services 42% more than last year for purchasing and customer support.
"Retailers had a robust holiday season, but a 28% rise in returns compared to last year is a concern," said Caila Schwartz, Director of Consumer Insights at Salesforce. She added that AI tools would be crucial in 2025 to reduce revenue losses and improve customer re-engagement.
Key Insights from the 2024 Holiday Season
Mobile and Social Commerce Shine
- Mobile devices accounted for 70% of global orders, peaking at 79% on Christmas Day.
- Social commerce platforms like TikTok Shop and Instagram drove 20% of global sales and 14% of all e-commerce site traffic.
Modest Discounts and Loyalty Programs
- Discounts averaged 23% in the U.S., with general apparel and health and beauty categories offering the steepest cuts.
- Loyalty programs proved effective, with 72% of U.S. shoppers indicating they influenced repeat purchases.
Returns Surge Presents Challenges
- Product returns have already reached $122 billion globally, a 28% increase from 2023.
- Popular practices like "try-on hauls" and "bracketing" (ordering multiple sizes) contributed to the spike.
- Salesforce predicts returns could climb to $133 billion, allowing retailers to leverage AI tools to streamline the process.
As AI tools gain traction, Salesforce expects their role in retail to expand in 2025, enabling more personalized shopping experiences, efficient returns processes, and improved customer loyalty.
