Consumers spent $241.4 billion online from 1 November to 31 December 2024, an increase of 8.7% year-on-year (YoY), setting a new record for e-commerce, according to Adobe online shopping data.
Mobile shopping hit a new milestone, with the majority of online transactions (54.5%) taking place through a smartphone this season (up from 51.1% in 2023); Mobile shopping was highest on Christmas Day, driving 65% of online sales (63% in 2023).
Of the $241.4 billion spent online this holiday season, over half (54%) was driven by just three categories including electronics ($55.3 billion, up 8.8% YoY), apparel ($45.6 billion, up 9.9% YoY) and furniture/home goods ($29.2 billion, up 6.8% YoY).
The strongest growth was observed in grocery ($21.5 billion, up 12.9% YoY) and cosmetics ($7.7 billion, up 12.2% YoY). Other categories with notable growth this season included sporting goods ($7.8 billion, up 7.4% YoY) and toys ($8.2 billion, up 7.8% YoY).
Shoppers found great deals in electronics, where discounts peaked at 30.1% off listed price (vs 31% in 2023), as well as toys at 28% (vs 28%), apparel at 23.2% (vs. 24%), computers at 22.8% (vs 24%) and furniture/home goods at 19% (vs 21%). Discounts also hit record highs for televisions at 24.2% (vs 23%), appliances at 19.2% (vs 18%) and sporting goods at 19.5% (vs 18%).
Strong discounts this season also drove consumers to purchase higher-ticket items in categories such as electronics, appliances and sporting goods—propelling e-commerce growth as a result.
While consumers drove record spending online, many are giving themselves greater flexibility with their budgets. This season, ‘Buy Now, Pay Later’ (BNPL) usage hit an all-time high, contributing $18.2 billion in online spend, up 9.6% YoY and representing $1.6 billion more than the last season. Smartphones are the form factor of choice for consumers leveraging this flexible payment method, driving the vast majority (79.1%) of BNPL purchases this season.
This season, traffic to retail sites from generative AI-powered chat bots (shoppers clicking on a link to a retail site) increased by 1,300% compared to the year prior. Cyber Monday saw the biggest growth in chat bot usage, up 1,950% YoY.
While the base of users remains modest, the uptick shows the value that chat bots are playing as shopping assistants. In an Adobe survey, seven in 10 respondents who have used generative AI for shopping believe it enhances their experience. Additionally, 20% of respondents turn to generative AI to find the best deals, followed by quickly finding specific items online (19%) and getting brand recommendations (15%).