Amazon can't capture the hearts of the most spending Americans

Recently, JungleScout released its "2023 Q1 Consumer Trends Report", which explores the consumption behaviors of the major consumer groups in the United States: Generation Z, Millennials, Generation X, and Baby Boomers. The study found that young people's consumption preferences and habits are leading the market.

According to the report, Generation Z consumers in the United States have the lowest concerns about inflation and are the least willing to cut spending compared with other consumer groups.

32% of Gen Z consumers shop online at least once a day, compared to 25% of Millennials, 15% of Gen X and 7% of Baby Boomers. Gen Z consumers are most likely to buy used items online to save money, with 42% having purchased a used item online in the past year.

Not only that, Generation Z consumers are redefining the U.S. e-commerce market. Although Amazon is still the main product search channel overall, it is losing search and sales share among Generation Z, a major consumer group.

Data shows that in the first quarter of 2023, 56% of US adults started searching for products on Amazon, down from 63% in the first quarter of 2022.

Among Generation Z consumers, 43% start their online product searches from TikTok, which is higher than the proportion of consumers who start their searches from Google and Amazon. In addition, other social platforms including Instagram and YouTube are also seeing an increase in search share among Generation Z.

A February 2023 GWI survey found that since 2020, social platforms have surpassed search engines in channel share for Gen Z’s product research.

This group is also starting to make purchases on social platforms, with nearly 50% of Gen Z adults learning about a new product or brand from an influencer, and nearly 33% purchasing that product, according to Capgemini.

TikTok is estimated to gain 9.6 million social buyers in 2023, more net additions than Facebook, Instagram, and Pinterest combined. According to a February 2023 Bizrate/Insider Intelligence survey, nearly 20% of U.S. adults aged 18 to 34 have made a purchase on TikTok in the past month.

It is foreseeable that social media is becoming a strong competitor to Amazon and Google in the field of search traffic. With the rise of ChatGPT and the increasing popularity of social search, consumers are expected to get accustomed to discovering products on many different channels, thereby opening up more traffic entrances.

Despite the increasing number of bans TikTok faces in the United States, it has not affected advertisers' confidence in the platform. In addition, as TikTok continues to test search ads, more and more brands will flock to it, thereby attracting more users to search and purchase on the platform.

Editor✎ Ashley/

Disclaimer: This article is copyrighted and may not be reproduced without permission.