US Online Holiday Spending Reaches Record $257.8 Billion Despite Slower Growth Rate
US online holiday spending reached a record $257.8 billion during November-December 2025, up 6.8% year-over-year according to Adobe Analytics, though growth slowed from the previous year's 8.7% rate. Buy-now-pay-later services drove $20 billion in transactions with 9.8% growth, while mobile commerce expanded to 56.4% of all transactions. Despite economic uncertainties, competitive discounts and flexible payment options helped retailers exceed forecasts and achieve record spending levels.
*this image is generated using AI for illustrative purposes only.
US online holiday spending reached a record $257.8 billion during the November-December 2025 season, according to Adobe Analytics data released Wednesday. Despite achieving record levels, the growth rate showed signs of moderation compared to previous periods, reflecting changing consumer spending patterns amid economic uncertainties.
Holiday Spending Performance Overview
The latest Adobe Analytics data reveals mixed signals for the US e-commerce sector during the critical holiday shopping period. While total spending volumes reached unprecedented levels, the pace of growth has notably decelerated.
| Metric | 2025 Season | 2024 Season | Growth Rate |
|---|---|---|---|
| Total Online Spending | $257.80 billion | $241.30 billion | +6.80% |
| Previous Year Growth | - | - | 8.70% |
| Adobe Forecast | $253.40 billion | - | +1.70% beat |
The $257.8 billion in online spending from November 1 through December 31 represented a 6.8% increase compared to the same period in 2024. This growth rate marked a deceleration from the 8.7% rise recorded during the previous holiday season. Despite the slower pace, actual spending exceeded Adobe's initial forecast of $253.4 billion by $4.4 billion.
Key Growth Drivers and Consumer Behavior
Several factors contributed to the record spending levels despite economic headwinds. Cyber Week emerged as a significant growth catalyst, with higher-income consumers maintaining their spending levels while budget-conscious shoppers responded to attractive discounts and flexible payment options.
Buy-now-pay-later (BNPL) services played an increasingly important role in driving consumer purchases. BNPL transactions accounted for $20.00 billion in online spending during the season, representing a 9.80% increase from the previous holiday period. This payment method has become particularly attractive to budget-conscious consumers seeking flexibility in their purchase decisions.
Competitive discounting strategies proved effective in stimulating demand for higher-ticket items. Electronics, sporting goods, and appliances saw increased purchase activity as retailers offered substantial price reductions to attract consumers.
Mobile Commerce and Technology Trends
Mobile shopping continued its upward trajectory during the 2025 holiday season. Smartphones accounted for 56.40% of all online shopping transactions, increasing from 54.50% recorded in the previous year. This trend underscores the growing importance of mobile-optimized retail experiences.
| Technology Metric | 2025 Performance | 2024 Comparison |
|---|---|---|
| Mobile Transaction Share | 56.40% | 54.50% |
| AI Shopping Assistant Traffic | +693.40% | +1,300.00% (prior year) |
Artificial intelligence integration in retail platforms showed substantial growth, with retail sites experiencing a 693.40% increase in traffic related to AI-powered shopping assistants and chatbots. While significant, this growth rate was lower than the 1,300% increase recorded in the previous year, suggesting the technology is moving beyond initial adoption phases.
Market Analysis and Economic Context
Adobe's analysis, based on direct online transactions and more than 1 trillion visits to US retail websites, provides comprehensive insights into consumer behavior patterns. The company noted that inflation concerns and economic uncertainties related to trade policies have made consumers more cautious about discretionary purchases, contributing to the moderated growth rate.
Vivek Pandya, lead analyst at Adobe Digital Insights, emphasized that "competitive discounts and flexible payment options like Buy Now Pay Later contributed to driving record spend." This observation highlights how retailers successfully adapted their strategies to address consumer price sensitivity while maintaining sales momentum.
The holiday season results demonstrate the resilience of US e-commerce despite economic headwinds, with retailers effectively leveraging technology, flexible payment options, and strategic pricing to achieve record spending levels.
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