Online shoppers were set on saving money this holiday season, according to new data, but that didn't stop them from spending.
Americans spent a record amount online this holiday season, according to Adobe Analytics. The company's report echoed another from Salesforce, which recently published its own holiday spending recap. By Adobe’s count, online shopping topped $241 billion in the U.S. this November and December, 8.7% higher than last year. (The estimate doesn’t account for recent deflation in online prices that, if factored in, would make growth appear more pronounced, Adobe said.)
Digital sales ticked up even though Americans are “increasingly price sensitive,” Adobe said. Merchants that cut prices saw demand pick up by at least as much, the company said. Along with furniture and home goods, categories that saw significant discounts—including electronics and apparel—drove more than half of online sales, Adobe said.
Discounts on big-ticket items pushed people to buy, according to Adobe, which said top online sellers include: TVs, smart watches, bedding, accent chairs and the Dyson Airwrap hair styling tool. Lego sets, figurines for Tonie audio players, Harry Potter toys and Mario, Spiderman and Zelda videogames were also popular, the firm said.
Americans are more frequently snapping up toys and other items on their phones, Adobe said, adding that influencers are playing a bigger role in bringing consumers to brands. Retailers are also seeing a spike in traffic from generative AI chatbots, which consumers use to track discounts, find products and get recommendations, Adobe said.
“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 generative AI-powered services to shop more efficiently,” said Vivek Pandya, lead analyst at Adobe Digital Insights.
When it comes to completing a transaction, shoppers are turning to buy now, pay later (BNPL) services, and often accessing them on their phone, Adobe said. Typically, BNPL allows consumers to break up purchases into installments, while receiving the items right away. Adobe estimates that shoppers spent $18.2 billion through BNPL services this November and December. That’s a 9.6% increase from last winter, Adobe said.
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