Gen Z Online Shopping Behavior: Consumer Habits, Preferences & Trends

Gen Z Online Shopping Behavior: Key Insights

• Defining Gen Z: Common definitions place Gen Z between 1997 and 2010.

• Online Shopping Habits: Gen Z online shoppers typically place a high value on sustainable shopping (like reCommerce), are likely to use social commerce, respond to influencer marketing, and pay digitally.

• Spending Power: Because Gen Z is the largest generation currently, its projected spending power is at US$12 trillion by 2030.

Gen Z’s online shopping behavior is truly unique. This generation dictates trends with a single TikTok or Instagram post, leaving brands scrambling to keep up. Imagine scrolling through your feed, discovering a must-have item, and sharing it with your friends – this is shopping for them.

Through social media, Gen Z merges self-expression with consumerism. How can the market adapt to this? How can brands leverage these insights? While it’s a challenge yet to be solved, this data can help guide the way.

Who Is Gen Z?

Although the threshold varies depending on the approach used, the most common starting point for the birth of Gen Z is 1997. What is unique about Gen Z is that all of the disruptive technologies of the past (television, computers, and the internet) have been a part of their lives from the beginning. 

Social media and constant connectivity, which allow for on-demand entertainment that previous generations have not experienced, are second nature to Gen Z. In turn, these preferences and experiences shape how Gen Z likes to shop online, how they use media and devices, and which brands they tend to choose. 

The end of Gen Z is between 2010 and 2012, when Gen Alpha starts. Before Gen Z, 1996 and earlier, are the Millennials. But what are the specific characteristics of Gen Z that define how they behave as online shoppers?

Gen Z: Online Shopping Habits

Because of the widespread connectivity enabled by the internet, which spans continents rather than local communities, Gen Z is considered the most socially conscious generation yet. Societal issues are global, it has become easier to share an opinion publicly, and so common points of discussion shape the way Gen Z processes information about global events.

As a result, the following online shopping preferences are typical of Gen Z. They are influenced by Gen Z’s widespread social consciousness, exposure to digital media, and ease of use.

1. Sustainable Shopping 

Sustainable online shopping includes multiple forms of eCommerce. The most prevalent is reCommerce, but it can also mean shopping for sustainable products that are recycled, recyclable, or made from environmentally friendly materials, or stores with packaging strategies that focus on reducing waste. 

Staying with the first aspect, reCommerce, the propensity of U.S. online shoppers to engage is growing with the younger generations. In a Statista survey, Gen Z respondents were the most likely to say they had bought items secondhand, with a 70% agreement rate. Older generations were less inclined.

Although reCommerce is the online purchase of secondhand products, it is predicated on a general willingness to buy used products. While Gen Y is almost as likely as Gen Z to buy secondhand, at 68%, Gen X respondents are less likely, at 50%. Baby Boomers are the least likely, at 37%. 

Platforms like Vinted, Depop, Vestiaire Collective, and the RealReal make it easy for users to both sell and buy pre-loved items. Since the concept is still quite new and emerging, there are issues that need to be addressed in the long run for reCommerce to work.

2. Mobile Access Facilitates Social Commerce

Social commerce is the purchase of products on social media platforms. It is still in its developing stages and is being adopted differently across world regions. When it comes to generational usage, Gen Z tends to be the most likely to shop via social commerce.

As Gen Z is highly proficient with mobile devices, using them frequently and for all aspects of life, online shopping is one of those activities. The appeal of social commerce is the ease with which users can click through to purchase a product they see on a site. For Gen Z shoppers, who tend to be more immersed in social media platforms, the likelihood of buying a product would be similarly high. This can even take involuntary forms, such as consumers compulsively buying to feel better.

3. Influencer Marketing

Influencer marketing is closely linked to social media. Accordingly, Gen Z users who are more likely to use social media frequently from an early age would be more influenced by the personalities on platforms who are promoting the products. The effect should not be underestimated, as influencers become role models for users who trust their judgment and want to emulate their lifestyle. The fact that an ad is sometimes indistinguishable from a regular post blurs the lines between entertainment and shopping.

Now that we know how users learn about products online, the next step is to examine how they typically prefer to pay for their orders. Spoiler alert: convenience is key.

4. Mobile Payments, eWallets and BNPL

Along with Millennials, Gen Z users tend to respond quite positively to mobile payments and eWallets, like PayPal, Apple Pay, Google Pay and Amazon Pay. These types of payments use credit card or bank information to make purchases with a single click. They greatly simplify the online shopping process, which can become a hassle if the right payment method is not available.

Gen Z Spending Power & Top Categories

Gen Z is currently the largest generation in the world. Marketing research firm Nielsen IQ estimates that Gen Z currently makes up 25% of the global population. By 2030, their spending power is expected to be at US$12 trillion. 

For global Gen Z shoppers, the product categories they prefer to buy online are clothing and footwear, electronics, entertainment, adult products, jewelry, and sport & leisure. This is according to Klarna Insights.

Outlook: Gen Z Online Shopping Habits

As a digitally native generation, the best way for retailers to reach Gen Z online shoppers is to meet them where they are. Combining shopping with entertainment, such as promoting products through trending content types, makes sense to engage consumers. Gen Z consumers also tend to care about the broader impact of their purchases, although the consumer paradox means that sometimes talk is cheap. 

Popular companies among youngsters include Nike, a socially conscious brand, and Shein, a not so socially conscious brand. It shows that trends and styles at low prices sometimes go a long way, but there is no guarantee that Gen Z users will order from Shein with the same fervor as they get older.

Sources: NIQ – Pew Research Center