Ecommerce Explodes: US Holiday Sales Surge to Record-Breaking $297 Billion
By LAPost, Los Angeles, CA (December 20, 2024) – The US online retail industry has reached unprecedented heights, with 2024 holiday season sales shattering records. According to the National Retail Federation, ecommerce sales are projected to grow between 8% and 9%, reaching a staggering $295.1 billion to $297.9 billion.
This remarkable growth underscores the dominance of digital shopping, driven by heavy holiday promotions, innovative strategies, and a shift in consumer behavior. Major players like Amazon and TikTok Shop are at the forefront, fueling the surge with record-breaking performances.
Ecommerce’s Record-Breaking Holiday Season
Amazon recently announced its “biggest-ever” Black Friday and Cyber Monday holiday sales, reaffirming its position as an ecommerce giant. TikTok Shop also made headlines, generating over $100 million in single-day sales on Black Friday—a threefold increase from the previous year.
Top products purchased through TikTok Shop included makeup, skincare, fragrances, indoor furniture, kitchen appliances, fitness items, and sporting equipment. Despite a looming potential ban, TikTok Shop has become a significant player in the US ecommerce landscape.
Insights from Social Media Marketing Expert Malik Naibi
Malik Naibi (Right) (Photo by: Richard Ren/LAPost)
In an exclusive interview, Malik Naibi, founder of the Los Angeles-based social media marketing agency Duke 65, shared his perspective on the explosive growth of ecommerce and its increasing share in total retail sales.
“The number one reason is that all the ecommerce platforms are putting heavy promotions on their holiday sales,” Naibi explained. “For example, TikTok offered a massive 50% off and free shipping campaign during Black Friday, and Amazon heavily emphasized the holiday season.”
He also highlighted the emergence of new players like Temu and Shein, who are aggressively investing in promotional strategies to capture market share.
Naibi noted a shift in purchasing habits post-pandemic, particularly among younger generations who now favor online shopping.
The TikTok Effect on Ecommerce
Social media platforms, especially TikTok, have revolutionized online retail. Naibi described TikTok’s model as “interest-driven ecommerce” compared to Amazon’s “demand-driven ecommerce.”
“With Amazon, people know what they want—they go and buy it. But with TikTok, it’s like going to an amusement park; you don’t know what to expect, and you end up buying something interesting or entertaining,” Naibi said.
This unique approach has propelled TikTok Shop’s success. Naibi’s agency, Duke 65, facilitated $2.1 million in TikTok Shop sales for clients in November 2024 alone. They’ve partnered with renowned brands like M&M’s, Dreo, EcoFlow, Jackery, Govee, and Parrot Uncle to optimize their presence on the platform.
The Future of Ecommerce and Brick-and-Mortar Stores
While ecommerce continues to soar, Naibi believes physical stores will remain an integral part of American retail.
“People still love driving to Costco, Target, and Walmart to enjoy the in-person shopping experience,” he said.
However, he emphasized that ecommerce is evolving rapidly. Major players like Amazon are investing heavily in logistics and new categories, such as Amazon car sales, to enhance the shopping experience and create additional demand.
Naibi also predicted that new international players like Temu, TikTok Shop, and Shein will introduce even more innovative strategies to capture market share.
A Transforming Retail Landscape
With record-breaking online sales this holiday season and continuous innovation, the lines between digital and physical shopping are blurring. As ecommerce grows, the retail industry is adapting to meet consumers’ evolving preferences, creating a dynamic ecosystem that’s reshaping how Americans shop.
