Market analysis company Adobe Analytics released data on Wednesday, January 7th, showing that despite a slowdown in online holiday spending in the United States in 2025, consumer spending still reached record levels due to significant discounts and “buy now, pay later” programs.
The company estimated based on online transaction data and analyzed over 1 trillion visits to retail websites in the United States.
During the period from November 1st to December 31st, online consumer spending grew by 6.8%, reaching $257.8 billion. In comparison, the growth rate of online consumer spending during the same period last year was 8.7%.
However, online sales for the season exceeded the previously projected $253.4 billion.
Inflation has made budget-conscious consumers more cautious in non-essential purchases, putting pressure on holiday sales growth.
Cyber Week drove most of the growth, with high-income consumers continuing to spend, while discounts and flexible payment methods attracted budget-conscious shoppers.
Adobe Digital Insights, the research and analysis department of Adobe, stated that competitive discounts and flexible payment methods, such as buy now, pay later, also contributed to record-breaking consumer spending.
According to Vivek Pandya, Chief Analyst at Adobe Digital Insights, “Competitive discounts and flexible payment methods, such as buy now, pay later, also drove record-breaking consumer spending.”
Adobe reported that online consumer spending through “buy now, pay later” reached $20 billion this season, growing by 9.8% compared to the previous holiday season. Discounts drove sales growth for high-ticket items, including electronics, sporting goods, and appliances, with smartphones accounting for 56.4% of online shopping transactions, up from 54.5% a year ago.
Retail website traffic also increased by 693.4% due to AI shopping assistants and chatbots, compared to a 1,300% increase the previous year.
(This article referenced a report from Reuters)