Consumers spent $1.14 trillion online globally and $257 billion in the U.S. compared to $1.1 trillion and $236 billion in 2020, according to Salesforce’s 2021 Holiday Shopping Report.

The report analyzed shopping data from over one billion shoppers on its Customer 360 platform and activity across commerce, marketing and service, including 24 of the Top 30 U.S. online retailers.

While Cyber Week saw muted digital growth in 2021, early November and late December surged helping retailers break sales records.

Consumers spent $1.14 trillion online globally and $257 billion in the U.S., compared to $1.1 trillion and $236 billion in 2020.

Salesforce data highlighted trends that shaped the 2021 holiday season, including:

  • Shoppers splurged early and late in the season — Shoppers purchased gifts ahead of the retail seasonal rush to avoid shipping delays and out-of-stock products, with 30 percent of global holiday sales completed by November 22. Cyber Week accounted for 23 percent of global sales, down from 24 percent in 2020. As consumers missed online shipping cut-off dates and concerns grew around COVID-19 variants, 23 percent of global digital sales were placed between December 18 and December 31. Stores that offered curbside or in-store pickup options over the same time period captured 62 percent of final global sales.
  • Digital-first consumers embraced flexible payment methods — With high holiday prices and discounts in the U.S. down 10 percent year-over-year (YoY), the use of Buy Now, Pay Later (BNPL) services in the U.S. during the holiday season increased 40 percent compared to 2020 to offset the higher price tags. Alternative payment forms, including PayPal, Apple Pay and Google Pay, also increased 15 percent YoY in the U.S.
  • Luxury handbags and home furniture were the fastest-growing online categories online — Luxury handbags had the highest YoY global growth with an increase of 45 percent in online sales. Home furniture and general footwear trailed closely behind at +34 percent and +32 percent growth respectively.
  • Social commerce continued to influence consumer buying behavior — A survey of 1,600 global shoppers from Salesforce’s 4th Edition of the Connected Shoppers Report found that by 2023, 25 percent of shopping is projected to occur beyond a retailer or brand’s website, app or physical store. Over the 2021 holiday season, four percent of global digital sales on a mobile device were made through a social media app and ten percent of mobile traffic originated from consumers browsing through social networks.
  • Stores played a critical role in holiday 2021 — While consumers continued to embrace digital this holiday, physical stores proved to be key in the shopping season, with 60 percent of global digital sales being influenced by brick and mortar from generating to fulfilling demand. The evolving role of the retail store and its employees helped to break down friction across digital and physical touchpoints.

“Despite the lingering pandemic and countless obstacles such as supply chain logistics, low inventory and fewer discounts, consumers flocked online to close out this holiday shopping season with a bang,” said Rob Garf, VP and GM, Retail, Salesforce. “As we move into a new year, retailers must push their brands to platforms such as social, gaming, messaging, and the metaverse to engage shoppers where they are discovering and buying products. They must also double down on efforts to reimagine physical stores to support continually changing digital experiences.