Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

AI-powered chatbots boost online holiday sales

Jan 09, 2025 - internetretailing.com.au
During the 2024 holiday season, AI-powered chatbots significantly boosted online sales in the United States, increasing by nearly 4% year-over-year, according to a Salesforce report. Retailers utilized chatbots, targeted promotions, product recommendations, and loyalty programs to attract customers seeking trending products and bargains. Online sales reached $282 billion in the U.S. from November 1 to December 31, surpassing Salesforce's forecast of 2% growth. AI-based chatbot usage rose by 42% compared to the previous year, contributing to $229 billion in global online sales, up from $199 billion in 2023.

Despite the sales growth, a high product return rate of 28%, up from 20% in 2023, posed a concern for profit margins, as noted by Caila Schwartz, director of Consumer Insights at Salesforce. Retailers are expected to rely more on AI and agents to minimize revenue losses from returns and re-engage shoppers. Mobile devices accounted for 79% of all orders during the holiday season, with a peak on Christmas day. Additionally, social media platforms like TikTok Shop and Instagram played a crucial role, driving 14% of all traffic to e-commerce sites.

Key takeaways:

  • AI-powered chatbots significantly boosted online sales during the 2024 holiday season, with a 4% year-over-year increase in the United States.
  • AI-influenced global online sales rose to $229 billion, despite a high product return rate of 28% being a concern for retailers.
  • Smartphone orders peaked on Christmas day, with 79% of holiday season orders placed through mobile devices.
  • Social media platforms like TikTok Shop and Instagram drove 14% of all traffic to e-commerce sites during the holiday season.
View Full Article

Comments (0)

Be the first to comment!