US online holiday sales rise nearly 9% on mobile shopping boom, report shows
Jan 07, 2025

(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 (NASDAQ: ADBE ) 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 (NYSE: WMT ) and Target (NYSE: TGT ) 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 (NYSE: CRM ) data also showed that AI-powered chatbots and other shopping features helped consumers purchase and return products during the 2024 holiday season.

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

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.