US online holiday sales exceed forecasts, returns surge - Salesforce

Investing.com -- U.S. online sales for the holiday season grew 4% year-over-year to $282 billion, surpassing Salesforce’s projected total of $277 billion for the period from Nov. 1 to Dec. 31, according to data released on Monday.

On a global scale, online holiday sales increased by 3%, amounting to $1.2 trillion. However, the report also highlighted a surge in returned merchandise.

Shoppers have returned goods worth $122 billion, marking a 28% rise from the previous year. Salesforce (NYSE:CRM ) attributed this increase in returns to shopping trends such as "try-on hauls" and "bracketing".

The former involves shoppers purchasing multiple items to try on and returning the unwanted ones, while the latter sees customers ordering the same product in different sizes.

Caila Schwartz, Salesforce’s director of consumer insights, expressed some concern over the surge in returns. In a statement, she noted that a 28% rise in the rate of returns compared to the previous year is a cause for worry as it could potentially impact profit margins.

The report also noted a significant increase in the use of AI and digital agents by retailers. These tools provide product recommendations and customer service, influencing nearly 20% of holiday purchases.

This represents a 6% increase from the previous year, showing a growing consumer engagement with AI and digital agents.

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Source: Investing.com