A new generation of shoppers is reshaping traditional and digital commerce, and sellers need to keep up. Identifying and adapting to Gen Z shopping habits can set your business up for success.
Contrary to popular belief, Gen Z and Millennials are two different generations with distinct shopping habits. Millennials remember dial-up internet and paying 10 cents to send a text message. Gen Z shoppers were born after Amazon started selling books.
If you're still trying to catch up to Millenials' shopping preferences, you'll be behind the curve trying to meet Gen Z’s expectations. Let this post be your crash course in Gen Z consumer habits and what Gen Z shoppers expect from ecommerce stores.
Generation Z, also known as Gen Z, iGeneration, or zoomers, is the generation that grew up around the transition from the 20th to 21st Century. Gen Z was born between the late 1990s and early 2010s. The Pew Research Center studies generational cohorts and said some things about Gen Z.
Gen Z is considered:
- More racially and ethnically diverse than previous generations
- The most well-educated generation in history
- More concerned about the environment and social justice issues than previous generations
- More digitally savvy than pre-internet generations
What Do Gen Z Shoppers Want?
Many Gen Zers are earning their first paychecks working part-time jobs in high school or are entering college or the workforce. The generation has a combined spending power of more than $140 billion. If your business wants to remain viable, you'll need to adjust to Gen Z shopping habits.
Gen Z shoppers value:
- Authenticity. Gen Z shoppers place a higher value on brand authenticity and transparency. They want to buy from brands that support social causes they believe in.
- Sustainability. This generation is more concerned about the environment and wants sustainable products and delivery models.
- Quality. Their desire for sustainability drives Gen Z shoppers to look for quality products that will last longer. Be sure to do product research to find the best items for your store.
- Affordability. Gen Z shoppers grew up during the Great Recession and witnessed their parents struggling with finances. Gen Z shoppers tend to be a bit more cautious with their spending, including being less likely than Millennials to purchase on credit.
How do you ensure a great customer experience?
It starts with having a site that performs well.
Connecting Gen Z Shopping Habits and Values
Gen Z consumer habits are directly related to their values. While Gen Zers value affordability, competing on price alone won’t cut it for this generation.
Gen Z shoppers are more likely to question a cheap price. If the price seems too low, they may wonder if the quality is poor, the price results from unfair labor practices, or the product was made or shipped in a non-sustainable way.
Highlighting quality or sustainability features can help appeal to this new generation of shoppers.
Digital vs. Brick-and-Mortar Shopping Habits
Gen Z buyers are omnichannel shoppers. Gen Z shoppers rank websites as the top source for their purchase inspiration. But, social media, friends or family, and in-store shopping basically tied for second place.
Surprisingly, every older generation surveyed, from Millennials to the Silent generation, was less likely to rank in-store shopping at a brick-and-mortar store as an influence for making a purchase.
Gen Zers desire quality products that will last. They're willing to put in the research to find the best product. That research often starts online but can include brick-and-mortar stores as well.
Turning Social Inspiration into Purchasing Decisions
Social media also plays a role in Gen Z's shopping research. YouTube and Instagram take the top spots for Gen Z shoppers' social media use. Older generations tend to favor Facebook.
Due to the popularity of social media with Gen Z shoppers, influencer marketing will likely yield better results with this generation. Google found that 70% of teenagers who watched YouTube found YouTube creators and influencers more relatable than traditional celebrities. Adding influencer marketing into your tactics could help you reach Gen Z shoppers.
Gen Z's increased use of social media for research also means they're more likely to make social commerce purchases. Social commerce is the direct selling of goods and services over social platforms. For example, Instagram's shopping feature allows brands to tag and post their products for sale so users can click to buy the item.
Social commerce removes the friction of going to an ecommerce site and finding the product by keeping the transition inside the social platform. Given that Gen Z is more likely to listen to a social media influencer, investing in social commerce is a great way to reach the new generation of shoppers.
How Gen Z Shopping Habits Are Changing Ecommerce
Gen Z is already making an impact on the ecommerce industry. In our list of the top ecommerce trends to watch in 2022, several were directly related to Gen Z shopping habits.
Trends you can link to Gen Z include:
- Social media driving sales
- Environmental concerns influencing buying decisions
- Growth of omnichannel shopping
- Increasing effectiveness of video as an ecommerce marketing strategy.
To be successful with Gen Z shoppers, businesses don't need to abandon everything they're doing. In fact, many tactics that worked with earlier generations will work with Gen Z. Savvy business owners need to take a data-driven sales approach to analyze their current sales, customers, and marketing to determine what works and what needs tweaking.
Building an Ecommerce Store for Gen Z Shoppers
You need a well-designed and functional website no matter what generation of shoppers you serve. But your digital commerce experience is critical for adapting to Gen Z shopping habits. This generation grew up with the internet. They’re the first fully digital generation.
At Nexcess, we help ecommerce businesses deliver the best shopping experience with hosting optimized for ecommerce – ensuring your customers can access, browse, and check out quickly.
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