Topic of the Week - 2024 Holiday Season Market Update: Record-Breaking Online Sales and Trends
The 2024 holiday season saw a significant rise in online retail sales, with a record-breaking $241.4 billion in sales from November 1 to December 31, according to Adobe Analytics. This represents an 8.7% year-over-year increase. Online sales rose 6.7% and in-store sales rose 2.9% from November 1 to December 24, according to Mastercard's SpendingPulse.
Mobile shopping reached a milestone, with 54.5% of online transactions occurring on phones, up from 51.1% in 2023. The five-day period from Thanksgiving to Cyber Monday generated over $41 billion in online sales, with Cyber Monday being the biggest online shopping day, driving $13.3 billion in spend. This period saw strong growth in e-commerce, with Thanksgiving Day and Black Friday seeing the strongest growth in online sales.
Discounts played a significant role in driving sales, with the share-of-units-sold for higher-priced items like electronics and appliances rising 21%. Grocery and cosmetics saw the strongest growth in online holiday spending, with increases of 12.9% and 12.2%, respectively. This suggests that consumers are becoming more comfortable with shopping online for everyday essentials and luxury items.
Buy now, pay later options saw significant adoption, with $18.2 billion in online spend, a 10% increase from last year. Generative AI chatbots sent 1,300% more traffic to retail sites compared to the previous year, indicating increased consumer comfort with using AI-powered services. These trends suggest that consumers are increasingly turning to online shopping, particularly on mobile devices, and are seeking more efficient and personalised shopping experiences.
Retailers who invested in omnichannel strategies, offering seamless shopping experiences across online and offline channels, saw significant benefits. According to a survey by the National Retail Federation, 63% of consumers reported shopping across multiple channels during the holiday season, with 44% using both online and in-store channels. This highlights the importance of providing a cohesive shopping experience across all touchpoints.
The rise of social media and influencer marketing also played a significant role in driving sales. According to a report by Influencer Marketing Hub, 70% of consumers reported making a purchase based on a social media influencer's recommendation. This suggests that retailers should consider partnering with influencers to reach new audiences and drive sales.
In addition, the holiday season saw a significant increase in the use of voice assistants for shopping. According to a report by Voicebot, 55% of consumers reported using voice assistants to make purchases during the holiday season, with 71% of those using Amazon Alexa. This highlights the importance of retailers optimizing their voice search strategies to reach consumers who are increasingly using voice assistants for shopping.
Overall, the 2024 holiday season saw significant growth in online retail sales, driven by the rise of mobile shopping, discounts, and AI-powered services. Retailers who invested in omnichannel strategies, social media marketing, and voice search optimization saw significant benefits, and those who failed to adapt to these trends may struggle to stay competitive in the market.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
2024 holiday season and online retail sales eCommerce stats
- Online retail sales reached a record-breaking $241.4 billion from November 1 to December 31, 2024
- Year-over-year increase of 8.7% in online retail sales
- Online sales grew by 6.7% from November 1 to December 24
- In-store sales only increased by 2.9% from November 1 to December 24
- 54.5% of online transactions took place on phones.
*Statistics sourced from Statista
That’s all for this week…
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