AI-influenced shopping boosts online holiday sales, Salesforce data shows

Five Below

06/01/2025 13:00

Jan 6 (Reuters) - Artificial intelligence-powered
chatbots helped consumers purchase and return products during
the 2024 holiday season, boosting online sales in the United
States by nearly 4% year-over-year, according to a report by
Salesforce.
    Retailers turned to nifty conversational customer services -
or chatbots - among others such as targeted promotions, product
recommendations and loyalty programs, to influence customers
hunting for trending products and best bargains.
    Online sales rose to $282 billion in the United States
between Nov. 1 and Dec. 31 from $272 billion a year ago, ahead
of Salesforce's forecast of 2% growth, even as discounts were
tempered.
    Shoppers used AI-based chatbot services 42% more than a year
ago, according to Salesforce, which analyzed data from 1.6
trillion page views on its platform. 
    AI influenced-sales rose to $229 billion of global online
sales between Nov. 1 and Dec. 31 from $199 billion in 2023, the
report said.
    However, a high rate of product returns by customers at 28%,
compared with 20% in 2023 was a "significant concern" and could
reduce the overall profit margins for retailers, said Caila
Schwartz, director of Consumer Insights at Salesforce.
    "Retailers who have embraced AI and agents are already
seeing the benefits, but these tools will be even more critical
in the new year as retailers aim to minimize revenue losses on
returns and re-engage with shoppers," Schwartz added.
    Orders placed through smartphones peaked on Christmas day,
as customers set out to do some last-minute shopping, with about
79% of all orders being placed through mobile devices during the
holiday season, the report said. 
    Apart from AI, retailers used social media sites such as
TikTok Shop and Instagram to help generate interest, with social
media driving 14% of all traffic to e-commerce sites.
    

 (Reporting by Juveria Tabassum in Bengaluru; Editing by
Shinjini Ganguli)
 ((Juveria.Tabassum@thomsonreuters.com;))