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The Key Takeaways
- Salesforce says that the online spend in the U.S. for November and Dec. was a record-breaking $282 Billion, a 4% increase from last year’s holiday period.
- Software firm says sales increased as consumers discovered items via TikTok, Instagram, and AI agents.
- Salesforce estimates about 11% global holiday spending to be returned.
Salesforce data shows that Americans have spent $282 billion in record amounts online during the holiday shopping season. However, this may not be what retailers wanted, as consumers return items at a high rate, according to the software company.
Salesforce CRM said that Americans have spent more money online this year than in previous years. They are shopping for the first time after saving up throughout the early months. According to Salesforce (CRM), consumers worldwide spent $1.2 trillion, or 3%, more during the holiday shopping season than they did the year before.
Salesforce’s sales grew faster than they anticipated, as AI and social media agents, such as TikTok, Instagram and TikTok, pointed customers to the products. Salesforce stated that AI tools played a role in 19% online orders worldwide by providing suggestions, offering targeted offers or conversing directly with the customers.
“Retailers who have embraced AI and agents are already seeing the benefits,” Caila Schwarz, director of customer insights at Salesforce.
Also, return rates have risen
Still, some of retailers' success could be undercut by high rates of returns, Schwartz said.
“Retailers had a robust holiday season, but a 28% rise in the rate of returns compared to last year is a cause for some concern,” Schwartz said, citing global return trends.
Many consumers buy a couple of sizes online. “try-on hauls,” Salesforce confirmed that it had the intention to return some products. The firm expects global returns to hit $133 billion — or more than 11% of the $1.2 trillion spent digitally from Nov. 1 to Dec. 31.
Salesforce stated that order patterns were changing as social networks and mobile devices are generating a larger share of sales. They also noted an increase of 8% in global traffic from retailers compared with last year. Salesforce stated that social media accounted for 20% of the sales generated by companies focused on these platforms. This includes TikTok’s Instagram (META) and Meta’s Instagram.
Still, retailers have not abandoned one of the more traditional sales tactics — discounting. Salesforce reports that companies have cut their online prices in the U.S. by 23% on average during the holidays, an increase of 1% over last year. Salesforce reported that the U.S. discounts were most generous for clothing, beauty and health products, and home decor and furnishings.
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