AI to influence $194 billion in online holiday sales

12/19/2023

AI is having a major impact on holiday e-commerce this year.

Artificial intelligence (AI) and buy online, pickup in store (BOPIS) are retail tech trends to watch this holiday season.

According to new analysis of online holiday sales performance from Salesforce, 17% of all orders have been influenced by AI since Nov. 1. Salesforce now predicts that AI is on track to influence $194 billion in holiday sales for the full holiday season.

The BOPIS option has increased as shoppers look to avoid in-store lines and shipping deadlines ahead of peak holidays, as Salesforce data indicates that BOPIS accounted for 25% of online orders during the three weeks following Cyber Monday (Nov. 29 – Dec. 18) and reached 28% of all orders placed the weekend of Dec. 16.

During the three-week period following Cyber Monday, BOPIS usage increased by 4% YoY. Salesforce now predicts BOPIS usage will surge during Christmas Week (Dec. 18-25), with one-third of online orders fulfilled via BOPIS as holiday ground shipping deadlines close.

In addition, analysis of shopping data from over 1.5 billion consumers across the Salesforce Customer 360 platform indicates the percentage of returns more than doubled in the week following Cyber Monday and has remained high since. Salesforce now predicts over $131 billion worth of online orders purchased this holiday season will be returned in the next year.

Other interesting online holiday sales figures from Salesforce include:

Since Nov. 1, online sales in the EU have grown 6% YoY, while U.S. online sales have grown 1% YoY. The contrasting numbers led to total online sales growth of 3% YoY globally since Nov. 1.
The average discount rate of 27% during Cyber Week was reduced to 18%.
Mobile wallet payments increased 47% globally during the three weeks following Cyber Monday.
Mobile devices accounted for 75% of digital traffic during the three weeks following Cyber Monday.

“Seamless fulfillment and easy returns will be key strategies for retailers looking to increase loyalty and profitability through the remainder of the holiday,” said Rob Garf, VP and GM of Retail and Consumer Goods, Salesforce. “Retailers that are efficiently fulfilling online orders from physical stores, especially during these peak shopping days, can extend their shipping cutoff date and win market share.”

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