AI-Powered Chatbots Boost Online Holiday Sales in 2024

AI-influenced shopping boosts online holiday sales, Salesforce data shows

(Reuters) - Artificial intelligence-powered chatbots helped consumers purchase and return products during the 2024 holiday season, boosting online sales in the United States by nearly 4% year-over-year, according to a report by Salesforce. Retailers turned to nifty conversational customer services - or chatbots - among others such as targeted promotions, product recommendations and loyalty programs, to influence customers hunting for trending products and best bargains. Online sales rose to $282 billion in the United States between Nov. 1 and Dec. 31 from $272 billion a year ago, ahead of Salesforce's forecast of 2% growth, even as discounts were tempered. Shoppers used AI-based chatbot services 42% more than a year ago, according to Salesforce, which analyzed data from 1.6 trillion page views on its platform. AI influenced-sales rose to $229 billion of global online sales between Nov. 1 and Dec. 31 from $199 billion in 2023, the report said. However, a high rate of product returns by customers at 28%, compared with 20% in 2023 was a "significant concern" and could reduce the overall profit margins for retailers, said Caila Schwartz, director of Consumer Insights at Salesforce. "Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimize revenue losses on returns and re-engage with shoppers," Schwartz added. Orders placed through smartphones peaked on Christmas day, as customers set out to do some last-minute shopping, with about 79% of all orders being placed through mobile devices during the holiday season, the report said. Apart from AI, retailers used social media sites such as TikTok Shop and Instagram to help generate interest, with social media driving 14% of all traffic to e-commerce sites. (Reporting by Juveria Tabassum in Bengaluru; Editing by Shinjini Ganguli)

US online holiday sales rise nearly 9% on mobile shopping boom, report shows

(Reuters) - U.S. online spending rose nearly 9% during the 2024 holiday season, with shoppers mainly using their smartphones to buy products ranging from TVs to LEGO sets, data from Adobe Analytics showed on Tuesday. Holiday spending from Nov. 1 through Dec. 31 rose 8.7% to about $241.4 billion online, compared with Adobe's forecast of $240.8 billion in September. In 2023, online spending during the same period grew 4.9%. A shorter holiday season and surplus discounts have been a key feature of the 2024 season with retailers including Walmart and Target increasing spending on ads and offering early discounts, targeted promotions as well as using artificial intelligence to help draw in bargain-hungry customers. According to Adobe, 54.5% of online shopping transactions took place through a smartphone this holiday season, compared with 51.1% in the same period in 2023. "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 AI-powered services to shop more efficiently," said Vivek Pandya, lead analyst, Adobe Digital Insights. Increasing reliance on AI-powered chatbots for product recommendations and shopping assistance drove a 1,300% rise in customer traffic to retail sites, according to Adobe which tracks e-commerce by monitoring online transactions across websites by accessing data from 85% of the top 100 U.S. internet retailers. Salesforce data also showed that AI-powered chatbots and other shopping features helped consumers purchase and return products during the 2024 holiday season. Along with convenient shopping and free delivery options, flexible payment methods such as buy-now-pay-later (BNPL) services also grabbed the attention of price-sensitive customers, Adobe said. For the 2024 holiday shopping, BNPL usage accounted for $18.2 billion in online spend, up 9.6% from the last season. (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shounak Dasgupta)

Online holiday sales jump nearly 9% as retailers lure bargain-hungry...

US online spending rose nearly 9% during the 2024 holiday season, with shoppers increasingly buying products such as TVs and LEGO sets on their smartphones, data from Adobe Analytics showed on Tuesday. Holiday spending from Nov. 1 through Dec. 31 rose 8.7% to about $241.4 billion online, higher than Adobe's initial forecast of $240.8 billion made in September. In 2023, online spending during the same period grew 4.9%. Retailers, including Walmart and Target, spent more on ads, offered early discounts and targeted promotions, and used artificial intelligence to drive sales during a shorter holiday season and draw in bargain-hungry customers. But, the higher-than-forecast jump in online spending may not translate into profits for retailers, said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wis. Walmart, Target, Macy's and other major retailers do not report on the full results of the holiday season until later this winter. "I'm a little nervous going into earnings season to see if the big gains online translate into big profits for retailers," Jacobsen said, adding that the discounts that drove sales can eat into margins. According to Adobe, 54.5% of online shopping transactions took place through a smartphone this holiday season, compared with 51.1% in the same period in 2023. "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 AI-powered services to shop more efficiently," said Vivek Pandya, lead analyst, Adobe Digital Insights. Increasing reliance on AI-powered chatbots such as Amazon's Rufus for product recommendations and shopping assistance drove a 1,300% rise in customer traffic to retail sites, according to Adobe, which tracks e-commerce by monitoring online transactions across websites by accessing data from 85% of the top 100 US internet retailers. Salesforce data also showed that AI-powered chatbots and other shopping features helped consumers purchase and return products during the 2024 holiday season. Along with convenient shopping and free delivery options, flexible payment methods, such as buy-now-pay-later (BNPL) services, also grabbed the attention of price-sensitive customers, Adobe said. For the 2024 holiday shopping, BNPL usage accounted for $18.2 billion in online spend, up 9.6% from the last season.

Online holiday spending rises nearly 9%, as deep discounts and AI-powered chatbots fuel purchases, Adobe data says

More demand, not higher prices, drove higher online spending, according to Adobe. Online spending rose 8.7% during the holiday season from last year, according to data from Adobe Analytics, as deals and the use of AI-powered chatbots helped inspire purchases. Sales on retailers' websites and apps totaled $241.4 billion from Nov. 1 to Dec. 31, according to Adobe. The company's analysis includes more than 1 trillion visits to U.S. retail sites, 100 million unique items and 18 different product categories. More demand, not higher prices, drove higher online spending, according to Adobe. Adobe's Digital Price Index found e-commerce prices have fallen every month for 27 months. The company's figures are not adjusted for inflation, but if they were revised, overall consumer spending would be higher. The e-commerce results are a promising sign for the retail industry, which has yet to report company-specific sales. Walmart, Target, Macy's and others will start to post their fiscal fourth-quarter results, including their sales over the key shopping season, in late February. Other early reads on the holiday season have looked strong, too. Retail sales for the holiday season in the U.S., excluding automotive sales, rose 3.8% year over year for the period from Nov. 1 through Dec. 24, according to Mastercard SpendingPulse, which measures in-store and online sales across payment types. Deep discounts motivated holiday shoppers to spend, according to Adobe's data. For every 1% drop in the typical price, demand for merchandise increased by about 1% compared with the 2023 holiday season, Adobe data found. That led to an additional $2.25 billion in online spending. Vivek Pandya, lead analyst for Adobe Digital Insights, said as prices of groceries and housing remain elevated, consumers are waiting to buy nonessential goods at times of the year when they expect to pay less. He described that pattern as "event-ized buying." For example, he said shoppers have opened their wallets during Amazon's Prime Day event in the summer or during sales days such as President's Day and Memorial Day. "There are certain moments and certain opportunities where we see them overindexing their spend, really driving forward, because they see the value," he said. "And then outside of those periods, we start to see growth kind of draw back down." Some of the best online deals during the holiday season were in the electronics category, where discounts peaked at 30.1% off listed price; toys, where price reductions topped out at 28%; TVs, where discounts maxed out at 24.2%; and apparel, where price cuts peaked at 23.2%. Electronics, apparel, and the furniture and home goods segment were the three top categories for the holiday season, which contributed to about 54% of the total online spending, according to Adobe. Yet the biggest year-over-year spending growth came from groceries, which jumped nearly 13% to $21.5 billion, and cosmetics, which shot up by 12.2% to $7.7 billion. One of the newer factors nudging spending is AI-powered shopping assistants such as ChatGPT and its competitors. Traffic to retail sites that came from generative AI-powered chatbots shot up by 1,300% compared with the year-ago holiday season, as more shoppers turned to the technology to look for gift ideas and direct them to cheaper items, according to Adobe. That data included only external chatbots, not those that retailers offer on their own apps or websites. Pandya said while the technology is young and the base of users still modest, those chatbots are becoming more meaningful drivers of clicks and purchases on retailers' websites. "You have a consumer that's very strategic and thinking a lot about their strategy around where they're buying, when they're buying, what's offering the best deal," Pandya said, "and that's where the generative AI sources, the assistants were helping the consumer and kind of co-piloting that journey." For many shoppers, smartphones played a central role. Most of the season's e-commerce purchases -- nearly 55% -- took place through a smartphone rather than a laptop or other device. That's up from about 51% in the year-ago holiday season, Adobe found. The use of buy now, pay later, a credit option that allows shoppers to split their purchase into multiple payments, rose 9.6% year over year and contributed to $18.2 billion in online spending during the holiday period. That marked an all-time high for the holiday season, according to Adobe. Cyber Monday was the biggest day on record for buy now, pay later with $991.2 million in spending.

Online Holiday Shopping Got an AI Boost, Says Salesforce

Artificial intelligence-powered chatbots helped consumers purchase and return products during the 2024 holiday season, boosting online sales in the United States by nearly 4 percent year-over-year, according to a report by Salesforce. Retailers turned to nifty conversational customer services -- or chatbots -- among others such as targeted promotions, product recommendations and loyalty programs, to influence customers hunting for trending products and best bargains. Online sales rose to $282 billion in the United States between Nov. 1 and Dec. 31 from $272 billion a year ago, ahead of Salesforce's forecast of 2 percent growth, even as discounts were tempered. Shoppers used AI-based chatbot services 42 percent more than a year ago, according to Salesforce, which analyzed data from 1.6 trillion page views on its platform.

US online holiday sales rise nearly 9% on mobile shopping boom, report shows

Jan 7 (Reuters) - U.S. online spending rose nearly 9% during the 2024 holiday season, with shoppers mainly using their smartphones to buy products ranging from TVs to LEGO sets, data from Adobe Analytics showed on Tuesday. Holiday spending from Nov. 1 through Dec. 31 rose 8.7% to about $241.4 billion online, compared with Adobe's forecast of $240.8 billion in September. In 2023, online spending during the same period grew 4.9%. A shorter holiday season and surplus discounts have been a key feature of the 2024 season with retailers including Walmart (WMT.N), opens new tab and Target (TGT.N), opens new tab increasing spending on ads and offering early discounts, targeted promotions as well as using artificial intelligence to help draw in bargain-hungry customers. According to Adobe, 54.5% of online shopping transactions took place through a smartphone this holiday season, compared with 51.1% in the same period in 2023. "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 AI-powered services to shop more efficiently," said Vivek Pandya, lead analyst, Adobe Digital Insights. Increasing reliance on AI-powered chatbots for product recommendations and shopping assistance drove a 1,300% rise in customer traffic to retail sites, according to Adobe which tracks e-commerce by monitoring online transactions across websites by accessing data from 85% of the top 100 U.S. internet retailers. Salesforce data also showed that AI-powered chatbots and other shopping features helped consumers purchase and return products during the 2024 holiday season. Along with convenient shopping and free delivery options, flexible payment methods such as buy-now-pay-later (BNPL) services also grabbed the attention of price-sensitive customers, Adobe said. For the 2024 holiday shopping, BNPL usage accounted for $18.2 billion in online spend, up 9.6% from the last season. Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shounak Dasgupta Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:U.S. Markets

AI-fueled shopping assistants help drive surge in online holiday spending

E-commerce spending jumped nearly 9% compared to a year earlier, data showed. Online holiday shopping soared to a fresh record high in 2024, driven by an array of e-commerce discounts and adoption of AI-fueled shopping assistants, according to data released on Tuesday by Adobe. E-commerce sales topped $240 billion in November and December, climbing nearly 9% when compared with the gift-buying season a year prior, data showed. The data indicated that three product categories accounted for more than half of the online holiday spending: electronics, apparel and home goods. Spending on cosmetics totaled nearly $8 billion, jumping more than 12% compared to a year prior. That marked the largest year-over-year spending increase for any product category, the data showed. Discounts helped drive strong sales for some high-priced items, Adobe said, pointing to a 20% jump in units sold for expensive goods. The fresh data indicated a spike in use of shopping assistants powered by generative AI, suggesting the technology has seeped into the retail sector's busiest time of the year. Traffic to retail sites from generative AI-powered chatbots skyrocketed 1,300% over November and December when compared to the same period a year prior, the data showed. The share of consumers arriving via AI shopping assistants remains modest, however, Adobe said. Shoppers arrived at retail sites via links shared by the chatbots. "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," Vivek Pandya, a lead analyst at Adobe Digital Insights, said in a statement. The e-commerce data comes weeks after initial indicators pointed to a robust holiday shopping season. Overall holiday spending surged in 2024, blowing past expectations and outpacing customer purchases over the gift-buying season last year, according to data released by Mastercard SpendingPulse last month. The end-of-year flex of consumer strength marks the latest indication of resilient U.S. buying power, which has kept the economy humming despite a prolonged stretch of high interest rates. Gross domestic product grew at a solid 2.8% annualized rate over three months ending in September, the most recent quarter for which data is available. The labor market has slowed but proven sturdy. The unemployment rate stands at 4.2%, a historically low figure. Consumer spending accounts for nearly three-quarters of U.S. economic activity. The increase in holiday spending coincided with an initial bout of relief for borrowers, as the Federal Reserve cut interest rates by a total of one percentage point over the final few months of the year. However, interest rates still stand at a historically high level of between 4.25% and 4.5%. Lower interest rates typically stimulate economic activity by making it easier for consumers and businesses to borrow, which in turn fuels investment and spending. But interest rate cuts usually influence the economy after a lag of several months, meaning the recent lowering of rates likely had little impact on holiday spending.

2024 holiday shopping was the 'most mobile of all time'

The 2024 holiday shopping season saw a record $241.4 billion in online spending, an 8.7% increase from the previous year. As inflation continued to press on consumers, a combination of competitive discounts, convenience, and a shift to mobile shopping drove growth. According to Adobe's (ADBE-0.44%) annual report, shopping from Nov. 1 through Dec. 31 was the "most mobile of all time," with smartphones driving 54.5% of online purchases, up from 51.1% in 2023. The shift was compounded by flexible payment options like "Buy Now, Pay Later" (BNPL) services, which saw a record $18.2 billion in transactions. A major chunk of BNPL purchases (79.1%) were made via smartphones. Vivek Pandya, Adobe's lead analyst, said the 2024 holiday season demonstrated how "e-commerce is being reshaped by a consumer who prefers to buy items on smaller screens and use generative AI to shop more efficiently." Adobe's data, which analyzed over 1 trillion visits to retail sites, 100 million products, and 18 product categories, offers a comprehensive view into the state of U.S. e-commerce. This insight comes from Adobe Experience Cloud, a platform many of the top 100 U.S. internet retailers rely on to personalize and measure online shopping. The key holiday shopping period - including Thanksgiving, Black Friday, Cyber Monday, and Christmas - saw consumers focused on electronics, apparel, and furniture/home goods. According to Adobe, these categories led the way in sales. Popular items included TVs, Bluetooth headphones, and fitness trackers. In apparel, puffer jackets, boots, and socks were top sellers, while the furniture/home category saw gains in holiday decor, bedding, and blankets. Meanwhile, with grocery prices still high, consumers took the opportunity to stock up. Groceries sales hit $21.5 billion, up 12.9% when compared to 2023. Cosmetics also saw a massive increase, reaching $7.7 billion - up 12.2% year-over-year - as consumers grew more comfortable buying these items online. Other categories, like toys, generated $8.2 billion, up 7.8% when compared to the same period a year ago. Discounts played a pivotal role in driving sales. Shoppers, increasingly price-sensitive due to inflation, opted to "trade up" to higher-ticket items, partly attracted by discounts of up to 30% on electronics and toys. Generative AI-powered shopping assistants also gained traction this season. A 1,300% increase in traffic to retail sites was driven by AI chatbots, reflecting the growing reliance on these tools to quickly find deals. According to Adobe, 7 in 10 consumers who used AI for shopping reported it enhanced their experience, particularly in locating the best prices for specific products.

Holiday Shoppers Spend a Record $1.2T Online, Salesforce Data Shows By Investing.com

Retailers tap AI and agents to increase margins and enhance the holiday shopping experience SAN FRANCISCO--(BUSINESS WIRE)--Salesforce (NYSE: CRM), the world's #1 AI CRM, today revealed new data showing holiday retail sales surged to a record $1.2 trillion globally and $282 billion in the United States, but high returns could dampen overall profit margins. The report indicates that the better-than-expected holiday shopping season was powered by surges in mobile and social commerce alongside increased consumer spending after months of saving in the first half of 2024. However, shoppers have already sent back $122 billion in merchandise. Both consumers and retailers leaned into the use of AI and agents to enhance holiday shopping experiences through product recommendations and personalized order support, influencing $229 billion " or 19% " of all online orders. Retailers had a robust holiday season, but a 28% rise in the rate of returns compared to last year is a cause for some concern, said Caila Schwartz, Director of Consumer Insights at Salesforce (NYSE:CRM). Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimize revenue losses on returns and reengage with shoppers." Top Salesforce 2024 holiday shopping insights (Nov. 1 - Dec. 31, 2024) Salesforce data, based on an analysis of 1.5 billion shoppers and 1.6 trillion page views across the Salesforce Platform, highlights trends that shaped the holiday season, including: Social commerce grows its influence on shoppers: Brands and retailers around the world found success with Salesforce this holiday season: Explore further: 2024 Salesforce Holiday Insights and Predictions Methodology Powered by Agentforce, Commerce Cloud, Marketing Cloud, and Service Cloud, Salesforce analyzed aggregated data to produce holiday insights from the activity of more than 1.5 billion global shoppers across more than 89 countries, with a focus on 18 key markets: the United States, Canada, United Kingdom (TADAWUL:4280), Germany, France, Italy, Spain, Japan, the Netherlands, Australia, New Zealand, the Asia-Pacific (excluding Japan, Australia, and New Zealand), Switzerland, Latin America (LAM), the Middle East and Africa (MEA), Eastern Europe, Belgium, and the Nordics. This battery of benchmarks provides a deep look into the last nine quarters and the current state of digital commerce. Several factors are applied to extrapolate macroeconomic figures for the broader retail industry. These and other results are not indicative of Salesforce performance. The prediction data that we present are from proprietary Salesforce research. The calculations we use blend together first-party and third-party data, as well as several market assumptions. ""About Salesforce Salesforce helps organizations of any size reimagine their business for the world of AI. With Agentforce, Salesforce's trusted platform, organizations can bring humans together with agents to drive customer success"powered by AI, data, and action. Visit www.salesforce.com for more information.

Online spending grew 3% to a record $1.2T over holiday period, says Salesforce | TechCrunch

Online spending rose 3% to a record $1.2 trillion globally over the holiday period, with U.S.-sales, specifically, growing 4% to $282 billion. That's according to a new report from Salesforce, which aggregated data from across its various cloud services, including Agentforce, Commerce Cloud, Marketing Cloud, and Service Cloud, to garner insights into spending activity spanning 1.5 billion shoppers across dozens of countries from November 1 through December 31, 2024. Overall, the figures fall slightly short of Salesforce's forecast: it had predicted holiday period online sales growth of 2% ($1.19 trillion). Despite that shortfall, marquee dates saw standout performances: Black Friday transactions increased 5% to a record $74.4 billion, while Cyber Monday sales grew 3% to $49.7 billion. And Thanksgiving generated $33.6 billion in sales globally, up 6%. There is another current that could undercut these numbers though: a higher-than-normal rate of returns. Salesforce said that consumers have already recouped $122 billion from merchandize returned to retailers. That's up by 28% on last year, a figure that could eventually rise to $133 billion, according to the report. This is "a cause for concern," Salesforce director of consumer insights Caila Schwartz says, though she adds that other forces could help offset those drags. Indeed, Salesforce is one of many in the market building AI solutions for retailers -- the pitch being that AI investments retailers make will lead to lower operational costs, and more personalized and engaging sales channels for customers. Salesforce says that AI and agents "influenced" holiday spending to the tune of $229 billion through targeted offers, personalized support, and product recommendations, up 6% year-on-year. AI-powered customer service uptake, specifically, rose 42%. "Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year, as retailers aim to minimize revenue losses on returns and reengage with shoppers," Schwartz said.

US Online Shopping Hit Record $282B During This Holiday Season, Salesforce Says

Still, products are being sent back at high rates, and Salesforce estimates that about 11% of global holiday spending will wind up returned. Americans spent a record $282 billion online this holiday season, according to data from Salesforce. But the figure may not be the gift retailers longed for, given that consumers are returning items in droves, the software company added. Americans spent 4% more online in November and December than last year, with consumers shopping after months of saving early in the year, Salesforce (CRM) said. Globally, consumers spent $1.2 trillion or 3% more than the prior holiday season, according to the software firm. Sales grew more than Salesforce anticipated as social media platforms, including TikTok and Instagram, and AI agents pointed people to products. AI tools had a hand in 19% of global online orders by making recommendations, targeting offers or conversing with customers, Salesforce said. "Retailers who have embraced AI and agents are already seeing the benefits," said Caila Schwartz, director of consumer insights at Salesforce. Still, some of retailers' success could be undercut by high rates of returns, Schwartz said. "Retailers had a robust holiday season, but a 28% rise in the rate of returns compared to last year is a cause for some concern," Schwartz said, citing global return trends. More consumers are buying a few sizes of items online or ordering "try-on hauls," with the intent of sending back some of the products, Salesforce said. The firm expects global returns to hit $133 billion -- or more than 11% of the $1.2 trillion spent digitally from Nov. 1 to Dec. 31. Ordering patterns are shifting as a greater share of shopping happens on mobile devices and social media, Salesforce said, pointing out that social networks generated 8% more traffic globally for retailers than last year. Companies focused on selling through these platforms, including TikTok and Meta's (META) Instagram, attributed about 20% of their sales to social media, Salesforce said. Still, retailers have not abandoned one of the more traditional sales tactics -- discounting. Companies in the U.S. cut online prices an average of 23% throughout the holiday season, up 1% from last year, according to Salesforce. Discounts tended to be most generous in the U.S. for apparel, health and beauty products, home goods and decor, Salesforce said.

US online holiday sales exceed forecasts, returns surge - Salesforce By Investing.com

Investing.com -- U.S. online sales for the holiday season grew 4% year-over-year to $282 billion, surpassing Salesforce's projected total of $277 billion for the period from Nov. 1 to Dec. 31, according to data released on Monday. On a global scale, online holiday sales increased by 3%, amounting to $1.2 trillion. However, the report also highlighted a surge in returned merchandise. Shoppers have returned goods worth $122 billion, marking a 28% rise from the previous year. Salesforce (NYSE:CRM) attributed this increase in returns to shopping trends such as "try-on hauls" and "bracketing". The former involves shoppers purchasing multiple items to try on and returning the unwanted ones, while the latter sees customers ordering the same product in different sizes. Caila Schwartz, Salesforce's director of consumer insights, expressed some concern over the surge in returns. In a statement, she noted that a 28% rise in the rate of returns compared to the previous year is a cause for worry as it could potentially impact profit margins. The report also noted a significant increase in the use of AI and digital agents by retailers. These tools provide product recommendations and customer service, influencing nearly 20% of holiday purchases. This represents a 6% increase from the previous year, showing a growing consumer engagement with AI and digital agents.

Online Holiday Shopping Sets Record Of $241 Billion In 2024, Up 8.7% From Last Year - Affirm Holdings (NASDAQ:AFRM)

The use of AI chat bot shopping assistants and increased 'Buy Now, Pay Later' purchases are notable trends. Adobe Analytics released its holiday e-commerce sales report on Tuesday showing that consumers spent a record-setting $241.4 billion online during the 2024 holiday shopping season. The Details: Online spending grew 8.7% from 2023 and consumers spent more than $4 billion in a single day on 15 separate days during the Nov. 1 to Dec. 31 period. According to Adobe's report, mobile shopping on a smartphone accounted for the majority of online sales and grew to reach 54.4% of total transactions in 2024. Cash-strapped consumers were drawn to strong discounts during the 2024 holiday season which drove purchases of higher-priced items in electronics, sporting goods and appliances. The share-of-units-sold for the most expensive goods increased by 21% overall, according to Adobe. The use of AI chat bot shopping assistants and increased 'Buy Now, Pay Later' purchases were other notable trends during the holiday shopping season. Read Next: Biden Set To Ban Future Offshore Oil Drilling: 4 Stocks, 2 ETFs To Watch AI Chat Bots: Adobe's report highlighted the growth in use of generative AI chat bots as shopping assistants this season. Traffic to retail sites from generative AI-powered chat bots was up 1,300% compared to 2023 and growth in chat bot usage reached 1,950% on Cyber Monday. "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, Adobe Digital Insights. BNPL: The 2024 holiday shopping season saw 'Buy Now, Pay Later' usage from providers like Affirm Holdings, Inc. AFRM and Block, Inc. SQ hit an all-time high. Buy Now, Pay Later sales reached $18.2 billion, up 9.6% year-over-year, and represented $1.6 billion more than 2023. Hot Sellers: Adobe's survey showed that top sellers included TVs, Bluetooth headphones and smart watches in electronics. Top toys this season included LEGO sets and Mattel, Inc.'s MAT Harry Potter toys and figurines, as well as card and board games. Read Next: Kevin O'Leary Joins The People's Bid For TikTok As Pending Ban Looms Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Salesforce: 28% Uptick in Returns Could Dampen Record Holiday Spending | PYMNTS.com

Artificial intelligence (AI) helped holiday sales reach record levels this year, new Salesforce data shows. However, the company said in a report issued Monday (Jan. 6), high rates of returns could hinder the overall profit margins on the $1.2 trillion in global sales. "Retailers had a robust holiday season, but a 28% rise in the rate of returns compared to last year is a cause for some concern," Caila Schwartz, director of consumer insights at Salesforce, said in a Monday news release. "Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimize revenue losses on returns and reengage with shoppers," Schwartz added. According to the report, this "better-than-expected" holiday shopping season was fueled by surges in mobile and social commerce, as well as an increase in consumer spending following months of saving in the first half of last year. Still, the report found that shoppers have already returned $122 billion in merchandise. And both consumers and retailers embraced AI and agents to improve their experiences via product recommendations and personalized order support, which Salesforce said influenced $229 billion -- or 19% -- of all online orders. Salesforce said that retail use of generative AI features rose by 25% during the holiday season compared to September and October of last year. And consumers turned to AI- and agent-powered chat for customer service 42% more than they did during the holiday season in 2023. As PYMNTS wrote last week, returns have come to define January's retail landscape, so much so that analysts have taken to calling the period "Returnuary," with consumers beginning to realize "that the reality of returns as a function of commerce is more of a feature of the landscape than it is a bug." Last year, returns made up $743 billion, or 14.5%, of the $5.13 trillion of reported retail sales, compared to 8.8% in 2012, a jump of 60%. And the 28% uptick reported by Salesforce exceeds the 17% increase in return rates projected before the holidays. "For savvy eCommerce players, returns can ultimately represent an opportunity to reinforce customer loyalty, optimize operations and innovate for the future," PYMNTS wrote. "Perhaps the most significant challenge, however, is customer experience." The PYMNTS Intelligence report "2024 Global Digital Shopping Index: SMB Edition," commissioned by Visa Acceptance Solutions, found that retailers who expect an increase in revenue were 31% more likely to offer online returns than merchants that expected their revenues to remain unchanged.

Holiday Shoppers Spend a Record $1.2T Online, Salesforce Data Shows - Salesforce (NYSE:CRM)

Retailers tap AI and agents to increase margins and enhance the holiday shopping experience Salesforce CRM, the world's #1 AI CRM, today revealed new data showing holiday retail sales surged to a record $1.2 trillion globally and $282 billion in the United States, but high returns could dampen overall profit margins. The report indicates that the better-than-expected holiday shopping season was powered by surges in mobile and social commerce alongside increased consumer spending after months of saving in the first half of 2024. However, shoppers have already sent back $122 billion in merchandise. Both consumers and retailers leaned into the use of AI and agents to enhance holiday shopping experiences through product recommendations and personalized order support, influencing $229 billion - or 19% - of all online orders. "Retailers had a robust holiday season, but a 28% rise in the rate of returns compared to last year is a cause for some concern," said Caila Schwartz, Director of Consumer Insights at Salesforce. "Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimize revenue losses on returns and reengage with shoppers." Top Salesforce 2024 holiday shopping insights (Nov. 1 - Dec. 31, 2024) Salesforce data, based on an analysis of 1.5 billion shoppers and 1.6 trillion page views across the Salesforce Platform, highlights trends that shaped the holiday season, including: Online sales and order growth reached new peaks: Online sales reached $1.2 trillion globally and $282 billion in the U.S. This represents a 3% global year-over-year (YoY) increase and a 4% YoY increase in the U.S. Online sales also grew 1% YoY in the European Union (EU). Retailers harness the value of AI and agents: $229 billion of global online sales were influenced by AI and agents in the form of product recommendations, targeted offers, and conversational customer service support. 19% of holiday purchases were influenced by consumers engaging with AI and agents, a 6% increase from 2023. Retail use of generative AI features like agents increased 25% during the holiday season compared to September and October in 2024. Shoppers used AI- and agent-powered chat for customer service 42% more than they did during the 2023 holiday season. The rate of returns rapidly increases: More than $122 billion of global purchases have already been returned, up 28% from last year. This increase is partially due to trending consumer behaviors like "try-on hauls" and bracketing (buying an extra size above and below your standard size). Salesforce projects that retailers will likely see this number grow to $133 billion - presenting an important opportunity for brands to use agents to make the returns process easier and more tailored to specific customer needs. New Salesforce survey data suggests that 75% of U.S. shoppers are interested -- and one-third are very interested -- in using an AI agent to complete returns and exchanges. Social commerce grows its influence on shoppers: Retailers using social commerce strategies saw 20% of global holiday sales generated through platforms like TikTok Shop and Instagram. Social media as a traffic-referring channel also grew 8% YoY, driving 14% of all traffic to ecommerce sites during the season. Mobile conversion picks up the pace: While global mobile traffic share remained the same YoY (79%), the percentage of orders placed grew to nearly 70%, up from 67% in 2023. Mobile orders reached their highest level on Christmas Day, accounting for 79% of all orders, up from 77% in 2023. Survey data from Salesforce also found that 79% of U.S. shoppers say a store associate used a mobile device to help them shop in store in the last year. Overall, $842 billion in global sales and $195 billion in U.S. sales were initiated by mobile devices. Retailers offer modest discounts: Average discount rates for the entirety of the 2024 holiday season reached 23% in the U.S. (up 1% YoY) and 22% globally (up 2% YoY). The verticals with the highest global discount rates were: Makeup (36%) General apparel (30%) Skincare (28%) The verticals with the highest U.S. discount rates were: General apparel (33%) Health and beauty (29%) Home goods and decor (18%) While discounts might have been lackluster for consumers this holiday season, loyalty programs are proving to be promising for customer retention. Nearly three-quarters (72%) of U.S. shoppers surveyed by Salesforce say loyalty programs make them more likely to continue doing business with brands. Salesforce powered the 2024 holiday season Brands and retailers around the world found success with Salesforce this holiday season: Commerce Cloud powered more than 220 million online orders while delivering fast, easy, and personalized digital experiences to shoppers. Marketing Cloud facilitated more than 378 billion marketing messages for businesses this holiday season, a 5% YoY increase. Service Cloud helped customers field and resolve nearly 33.3 billion case interactions throughout the holidays. Data Cloud ingested over 8.5 trillion records (+77% YoY), processed nearly 1.4 quadrillion records (+29% YoY), and helped retailers action over 840 billion profiles across various platforms and channels like Marketing Cloud, Yahoo and Google. Einstein provided more than 368 billion AI-powered product recommendations to shoppers this holiday season to personalize the customer experience, up 30% from last year. Explore further: Compare this data to Salesforce's 2024 holiday season forecast Visit the Holiday Shopping HQ for real-time holiday shopping results Check out how Saks elevates luxury shopping with unified data and agents 2024 Salesforce Holiday Insights and Predictions Methodology Powered by Agentforce, Commerce Cloud, Marketing Cloud, and Service Cloud, Salesforce analyzed aggregated data to produce holiday insights from the activity of more than 1.5 billion global shoppers across more than 89 countries, with a focus on 18 key markets: the United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, the Netherlands, Australia, New Zealand, the Asia-Pacific (excluding Japan, Australia, and New Zealand), Switzerland, Latin America (LAM), the Middle East and Africa (MEA), Eastern Europe, Belgium, and the Nordics. This battery of benchmarks provides a deep look into the last nine quarters and the current state of digital commerce. Several factors are applied to extrapolate macroeconomic figures for the broader retail industry. These and other results are not indicative of Salesforce performance. The prediction data that we present are from proprietary Salesforce research. The calculations we use blend together first-party and third-party data, as well as several market assumptions. About Salesforce Salesforce helps organizations of any size reimagine their business for the world of AI. With Agentforce, Salesforce's trusted platform, organizations can bring humans together with agents to drive customer success -- powered by AI, data, and action. Visit www.salesforce.com for more information. View source version on businesswire.com: https://www.businesswire.com/news/home/20250106543079/en/ CRMSalesforce Inc$331.36-0.46%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs