AI and Discounts Drive Holiday Sales Growth

The 2024 holiday season saw U.S. online shopping reach a record $241.4 billion, an 8.7% increase from the previous year, driven by heavy discounts and the growing use of AI-powered shopping assistants. Electronics, apparel, and home goods dominated sales, with mobile shopping accounting for 54.4% of transactions. The use of AI chatbots surged by 1,300%, enhancing consumers' shopping experiences, while 'Buy Now, Pay Later' options reached an all-time high of $18.2 billion. Despite increased sales, retailers faced a 28% rise in product returns, challenging profitability. Enhanced product content and social media platforms like TikTok and Instagram also played significant roles in driving consumer engagement during this period.