The 2024 holiday season has seen a significant surge in online spending, with global sales reaching a record $1.2 trillion, a 3% increase from the previous year, according to a report by Salesforce. In the United States, online sales grew 4% to $282 billion, with marquee dates such as Black Friday and Cyber Monday seeing standout performances.

The report, which aggregated data from across Salesforce's cloud services, including Commerce Cloud, Marketing Cloud, and Service Cloud, provides insights into spending activity across 1.5 billion shoppers in dozens of countries from November 1 to December 31, 2024. Despite the overall growth, the figures fell slightly short of Salesforce's forecast, which had predicted a 2% growth in online sales to $1.19 trillion.

However, the report highlights some notable successes, with Black Friday transactions increasing 5% to a record $74.4 billion, and Cyber Monday sales growing 3% to $49.7 billion. Additionally, Thanksgiving generated $33.6 billion in sales globally, up 6% from the previous year.

One area of concern, however, is the higher-than-normal rate of returns. According to the report, consumers have already recouped $122 billion from merchandise returned to retailers, a 28% increase from last year. This figure is expected to rise to $133 billion, which could potentially undercut the overall sales growth.

Caila Schwartz, Salesforce director of consumer insights, notes that this trend is "a cause for concern," but suggests that other forces, such as AI-powered solutions, could help offset the impact of returns. Salesforce is one of many companies building AI solutions for retailers, which are designed to lead to lower operational costs and more personalized and engaging sales channels for customers.

The report reveals that AI and agents "influenced" holiday spending to the tune of $229 billion through targeted offers, personalized support, and product recommendations, a 6% year-over-year increase. AI-powered customer service uptake, specifically, rose 42%. Schwartz emphasizes that retailers who have embraced AI and agents are already seeing the benefits, and that these tools will be even more critical in the new year as retailers aim to minimize revenue losses on returns and reengage with shoppers.

The report's findings have significant implications for the retail industry, highlighting the need for retailers to invest in AI-powered solutions to stay competitive and minimize losses. As the industry continues to evolve, it will be interesting to see how retailers adapt to these trends and leverage technology to drive growth and engagement.

In conclusion, the Salesforce report provides a comprehensive look at the state of online spending during the holiday season, highlighting both the successes and challenges faced by retailers. As the industry looks to the future, it is clear that AI-powered solutions will play a critical role in shaping the retail landscape.