Adobe: U.S. online spending topped $241 billion this past holiday season

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by Kim Souza ([email protected]) ago 0 views 

Early reports of online holiday spending (Nov. 1 to Dec. 31, 2024) peg U.S. sales rising 8.7% to $241.4 billion, ahead of earlier estimates by Adobe Analytics. The figures are not adjusted for inflation, but Adobe analysts said many categories saw lower prices year over year.

Adobe also reports the 2024 holiday season was the most mobile of all time with smartphones driving 54% of all online purchases, up from 51.1% in 2023. The highest use for mobile shopping tracked by Adobe occurred on Christmas Day, driving 65% of online sales, compared to 63% in 2023.

The report also states that 79.1% of buy now, pay later (BNPL) transactions were made through a smartphone in the holiday season. BNPL usage hit an all-time high, contributing $18.2 billion in online spending, up 9.6% from $16.6 billion in the 2023 holiday season, Adobe reports.

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Of the $241.4 billion spent online during the 2024 holiday season, Adobe found that 54% was driven by three categories: electronics ($55.3 billion, up 8.8% year-over-year); apparel ($45.6 billion, up 9.9% year-over-year) and furniture/home goods ($29.2 billion, up 6.8% year-over-year).

The strongest growth was observed in grocery ($21.5 billion, up 12.9% year-over-year) and cosmetics ($7.7 billion, up 12.2% year-over-year), according to Adobe.

“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, Adobe Digital Insights. “It presents opportunities for retailers to deliver new services and experiences that capture the attention of consumers, many of whom are now shopping online in different ways.”

DEMAND DRIVERS
Adobe data shows that for every 1% decrease in price, demand increased by 1.029% compared to the 2023 season. This drove an additional $2.25 billion in online spending.

Strong discounts this season also drove shoppers to purchase higher-ticket items in categories such as electronics, appliances, and sporting goods, according to Adobe. During the season, the share of units sold for the most expensive goods increased by 21%.

Adobe also reports that social media influencers drove more demand during the holiday season compared to the prior year. Revenue attributed to influencer recommendations on social media comprised 17.6% of the total online spend, up 6% year over year. Social media advertising comprised about 5% of total holiday revenue, up 5.4% from a year ago.

The National Retail Federation (NRF) reports consumer spending on both goods and services grew 5.5% year over year unadjusted for inflation in November and December combined while disposable personal income was up 5.2%, year over year, helping boost consumer purchases online and in stores.

While NRF won’t release comprehensive December retail sales data until next week, spending is on track to meet or exceed NRF’s projection for sound holiday shopping season growth of between 2.5% and 3.5% over 2023, according to Jack Kleinhenz, chief economist at NRF.