US online holiday sales soared to a record-breaking $282 billion for the November-to-December period, marking a 4% year-on-year increase. This growth came as consumers dipped into savings accumulated earlier in 2024, according to data released by Salesforce. Meanwhile, global sales also saw a 3% increase, reaching a total of $1.2 trillion.
However, despite the record sales, the surge in returns might dampen overall profits. Return volumes jumped a staggering 28%, reaching a hefty $122 billion, raising concerns for retailers trying to manage these additional costs.
One bright spot is the increasing use of artificial intelligence (AI) and agents, which helped both consumers and retailers streamline the shopping experience. These AI-driven tools influenced 19% of all online sales by offering personalized product recommendations and order support. Caila Schwartz, director of consumer insights at Salesforce, pointed out that “retailers who have embraced AI and agents are already seeing the benefits,” and this trend is expected to be crucial moving forward as businesses work to offset the impact of high return rates.
Apparel, including jewelry, saw the steepest discount rates in the US, with prices dropping by 33%, followed by health and beauty at 29% and home goods at 18%. Despite the challenges posed by returns, retailers that strategically leveraged AI and customer engagement tools are better positioned to handle the evolving landscape of e-commerce.