Ecommerce Explodes: US Holiday Sales Surge with Record-Breaking $297 Billion Online Spend

LAPost/Los Angeles, Ca (December 20, 2024)  – The only way is up for online retail in the US – as holiday season sales for 2024 hit record levels.

Ecommerce is exploding as more and more shoppers make their purchases at the click of a button, taking full advantage of Black Friday Deals.

Total ecommerce growth during the 2024 holiday season is expected to be between 8% and 9%, with online holiday sales reaching between $295.1 billion and $297.9 billion, according to the National Retail Federation.

Amazon recently announced its “biggest ever” Black Friday and Cyber Monday holiday shopping sales in 2024.

Meanwhile, with a potential ban looming, TikTok Shop generated more than $100 million in single-day sales on Black Friday – triple the amount of sales from that day last year.

Social commerce continues to rise, and Tik Tok revealed that the top products customers purchased included makeup, skincare, fragrances, indoor furniture, kitchen appliances, fitness items, and sporting equipment.

Malik Naibi (Right) (Photo by: Richard Ren/LAPost)

Malik Naibi, the founder of the leading social media marketing agency Duke 65, explained in an exclusive interview why e-commerce is rapidly growing and steadily increasing its share of total retail sales.

He said: “The number one reason is that all the e-commerce platforms are putting heavy promotions on their holiday sales.

“For example, we saw TikTok putting out a huge 50% off and free shipping campaign for their Black Friday sales and Amazon also put a lot of emphasis on holiday seasons.

“And now we have a lot more new players like Temu, like Shein, who are in the e-commerce place and are willing to spend top dollars on promoting their holiday deals.

“Secondly, people’s general purchasing habits have changed after COVID and the younger generations are leaning more towards purchasing online these days.”

Social media platforms, such as Tik Tok, have had a significant impact on online retail in recent years.

Marketing expert Malik has witnessed this first-hand as his Los Angeles-based company Duke 65 facilitated $2.1 million in TikTok Shop sales for their clients in November alone this year.

They have collaborated with renowned brands like M&M’s, helping them optimize their TikTok shop. Duke 65 has also partnered with top Amazon brands such as Dreo, EcoFlow, Jackery, Govee, and Parrot Uncle.

“I think TikTok completely changed the game of e-commerce,” said Malik. “With traditional e-commerce like Amazon, I like to call it ‘demand-driven e-commerce’ or ‘shelf e-commerce’.

“It’s kind of like you go into the grocery store where you know what you want and you go and buy those items.

“But with TikTok, I would call it ‘interest-driven e-commerce’. This is more like going into an amusement park where don’t know what to expect – and you make a purchasing decision because you saw something that was interesting, useful, or entertaining.

“It triggers the demand and pushes you to make the purchase. So rather than waiting for people with demand to come, they create demand using content for their customers.

“And on average, people spend over 90 minutes on TikTok daily in America. And that’s a lot of screening time. And that creates a window for people to shop without them even realizing.”

With record online retail sales this holiday season, and total ecommerce sales figures climbing each year, this trend will inevitably continue in the next few years.

How will this change the overall landscape of shopping and what’s the future for physical stores?

Malik Naibi said: “I think physical stores will always have their place in retail, and they will continue to play a major role in American retail because people’s consuming habits don’t change overnight.

“People still love to drive their cars to the parking lot of Costco, Target, and Walmart and enjoy the shopping experience. However, I do believe that e-commerce will continue to evolve.

“The major players like Amazon are making significant investments in improving logistics and the shopping experience, which will create more demand and make more people willing to do their holiday shopping online.

“Amazon is also expanding the categories they sell; for example, they are launching Amazon car sales.

“Additionally, the new players—new international players like Temu, TikTok Shop, and Shein—have not yet reached their full potential. I believe they have many more techniques and strategies up their sleeves.”