Online spending during the 2023 holiday season increased by 8.7% from the previous year, totaling $241.4 billion, driven by deals and the emergence of AI-powered chatbots, according to Adobe Analytics. Despite a consistent drop in e-commerce prices over 27 months, strong demand rather than rising prices fueled this growth. Key categories contributing to total spending included electronics, apparel, and home goods, which collectively made up 54% of online sales. Notably, groceries saw a significant year-over-year spending increase of nearly 13%, reaching $21.5 billion. Shoppers were influenced by deep discounts, with price reductions in electronics hitting 30.1% and toys reaching up to 28%. The rise of generative AI chatbots played a notable role, with traffic to retail sites originating from these tools skyrocketing by 1,300% compared to last year, indicating their growing importance in guiding consumer purchasing decisions. Additionally, smartphones dominated e-commerce purchases, comprising nearly 55% of sales. The “buy now, pay later” option also gained traction, contributing $18.2 billion in online spending, with Cyber Monday setting a record for this payment method. Overall, the data reflects a shift in consumer behavior towards strategic, event-driven shopping during the holiday season.
