US E-Commerce Spending Hits $258B During the Holidays
According to Adobe Analytics, US e-commerce spending reached a staggering $257.8 billion over the 2025 holiday season, marking a 6.8% increase compared to the previous year. The rise in consumer spending was driven by new shopping behaviors, with the use of Buy Now, Pay Later (BNPL) options hitting an all-time high.
AI also played a significant role in the retail space, with consumers embracing it more than ever to assist in their shopping decisions. Retailers increased investments in both developing in-house AI shopping assistants and collaborating with external AI platforms to meet the growing consumer demand for personalized, AI-driven experiences.
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The Role of AI and BNPL in Consumer Spending
Adobe’s Digital Insights Lead Analyst, Vivek Pandya, noted that “this 2025 holiday season, consumers embraced generative AI more than ever as a shopping assistant in their purchasing decisions.” AI-powered shopping assistants became a key factor in driving consumer engagement and purchases. However, despite the year-over-year growth, the user base for AI remains relatively modest.
In addition to AI, BNPL options also saw increased adoption. Adobe found that many shoppers used BNPL most frequently for electronics, apparel, toys, and furniture. This method of payment allowed consumers to spread out their purchases while still benefiting from competitive discounts.
Categories Driving the Spend
Electronics, apparel, and furniture made up about 54% of the total holiday e-commerce spend. All three categories saw year-over-year growth in consumer interest. Groceries experienced a significant 10.2% jump in online spending, while cosmetics saw an increase of 9.3%.
Although discounts remained strong throughout the holiday season, Adobe’s data revealed that they were only slightly higher than in 2024. Electronics saw peak discounts of 30.9%, up from 30.1% the previous year, while the toys category saw a 1.6% increase in its discount peak. Apparel, televisions, appliances, and furniture all had varying discount changes, with some categories seeing slight increases and others experiencing minor declines.
Increasing Reliance on BNPL and Credit Cards
Bank of America Institute economists reported that consumers were more reliant on financing options like BNPL and credit cards during the holiday season. As shoppers looked for more flexible payment methods, BNPL services surged in popularity. However, research from marketing intelligence platform Sooth suggested that BNPL default rates could rise by as much as 50% in the first quarter of 2026.
These trends highlight a shift in consumer behavior as shoppers seek convenience, flexibility, and the ability to spread their payments over time, especially in categories like electronics and furniture.
