Generation Z as an Online Shopper

Posted on Aug 29, 2017 By kbormann Share:

Gen Z: A Generation that spends most of its time online, but still shops in stores.

Download: The State of Shipping in Commerce 2017 ReportGeneration Z is defined as anyone born after 1995, a “digitally native” group that grew up not knowing life without cell phones or the internet. The oldest members of Generation Z are currently 21 years of age, meaning they have more free time and less financial responsibilities than other generations.

While 74% of this generation spends its time online, a large percentage of them still shop in brick-and-mortar stores. A study by the IBM Institute for Business Value found that 67% of Gen Z shop at brick-and-mortar stores “most of the time” and 31% shop there “sometimes,” which indicates that about 98% of this generation shops in store. However, this doesn’t mean that Gen Z only shops in-store.

According to ProShip’s State of Shipping report, 93% of shoppers are Amazon regulars, and 68% of Gen Z shop in marketplaces as a whole because of specialized deal offerings (compared to other generations, Gen Z is extremely brand loyal, and they prefer shopping for the best discounts). The State of Shipping report also found that Gen Z is the most susceptible to increasing their basket size to be able to qualify for free shipping (the average Gen Z basket size is $241!).

This indicates that Gen Z is an awesome group for retailers to target, but how?

By proactively instating a “digitally native” strategy. Gen Z shows a high interest in technology, so retailers need to connect technical in-store innovations to highly personalized online experiences to attract them. “Generation Z expects technology to be intuitive, relevant, and engaging,” so their online shopping experience should be related to their experiences in-store. If the two experiences don’t mix, you’re out of luck. For instance, product quality and availability are the biggest factors when it comes to picking one brand over another, so retailers should keep this in mind when building both their in-store and online experiences.

But let’s not forget how Gen Z shops online. Mobile shopping is the most popular with Gen Z as opposed to other generations, and as this generation grows older, e-commerce may become increasingly more appealing to them.

With access to so much buying power, $44 billion according to IBM, as this generation grows older retailers need to make sure they keep the customer experience top of mind to keep Gen Z coming back.

Download the only retail report you'll need all year.

Download: The State of Shipping in Commerce 2017 Report

Sources:

ProShip: 2017 Report: The State of Shipping in Commerce

NRF: Despite Living Digital Life, 98 Percent of Generation G Still Shop Store

Business Insider: Generation Z Hasn’t Given Up on Shopping Malls

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