US Online Holiday Spending Reaches Record, Reports Slower Growth: Adobe

• Buy-now-pay-later (BNPL) services accounted for $20 billion in online spending, up 9.8% year-over-year, as flexible payment options helped attract budget-conscious shoppers
• Smartphones represented 56.4% of online shopping transactions, up from 54.5% the previous year, while AI-powered shopping assistants saw a 693.4% jump in traffic
• Steep discounts drove demand for higher-ticket items like electronics, sporting goods, and appliances, with spending exceeding Adobe's forecast of $253.4 billion

Summary

Key Findings:

U.S. online holiday spending reached a record $257.8 billion during the November 1-December 31, 2025 period, representing 6.8% growth year-over-year, according to Adobe Analytics. However, this marks a deceleration compared to the previous year's growth rate during the same period. The results exceeded Adobe's forecast of $253.4 billion.

Market Drivers:

Growth was driven primarily by higher-income consumers, while budget-conscious shoppers were attracted by steep discounts and flexible payment options. Buy-now-pay-later (BNPL) services accounted for $20 billion in spending, up 9.8% from the prior holiday season. Discount-driven demand particularly boosted sales of high-ticket items including electronics, sporting goods, and appliances.

Consumer Behavior Shifts:

Mobile shopping continued its dominance, with smartphones accounting for 56.4% of online transactions, up from 54.5% year-earlier. AI-powered shopping assistants and chatbots saw traffic surge 693.4%, though this followed a 1,300% increase the previous year.

Economic Context:

The slower growth reflects heightened consumer caution amid inflation concerns and economic uncertainty related to President Trump's trade policies, pressuring discretionary spending. Adobe's analysis is based on over 1 trillion visits to U.S. retail websites.

Market Implications:

While the record spending level signals continued e-commerce strength, the growth deceleration suggests potential headwinds for online retailers. The increasing reliance on discounts and BNPL options may pressure profit margins, while the shift toward mobile and AI-driven shopping continues reshaping the retail landscape.