According to the latest research from eMarketer, as Generation Z’s purchasing power gradually increases, it will become the largest online consumer group in the United States by 2025. This group accounts for 20% of the U.S. population and has huge potential for online shopping. For cross-border sellers, it is very important to understand the consumption characteristics of this group. eMarketer's research summarizes the current online consumption preferences of Generation Z in the United States, providing a reference for brands on how to reach and approach Generation Z consumers. 1. Generation Z’s online purchasing power is rising Data shows that in 2023, Generation Z will account for 20% of the total US population, the same as Millennials and Generation X. By 2025, the number of online buyers among Generation Z in the US will exceed that of Generation X. As digital natives, Gen Z expects brands and retailers to provide a seamless digital experience, whether on social media, websites or apps. 2. Willing to pay a premium for favorite brands, but with low loyalty Of all generations, Gen Z is the most likely to spend money on brands they love, with 64% saying they would be willing to spend more on brands they are loyal to, according to Cheetah Digital. But 71% also said they would buy from a competitor, suggesting that other factors, such as price or convenience, come into play when making a purchasing decision. 3. They are happy to discover and purchase products on social media
Data shows that currently, almost half of Generation Z in the United States shop on social media. Discovering favorite products is the main reason for Generation Z to shop through social media. 45% of people said that they bought on social platforms because they found the products they liked. Notably, recommendations from influencers and creators, company or brand names, and livestream shopping are less of a driver of social shopping among Generation Z. Still, platforms like TikTok and Amazon are working hard to drive consumer adoption of livestream shopping. 4. BNPL usage is high and people are interested in emerging payment methods Gen Z is most likely to use buy now, pay later services to make purchases, as this group includes younger buyers who haven’t yet established credit but still want to finance smaller purchases. Additionally, Gen Z consumers are embracing other emerging digital payment technologies, such as mobile wallets, contactless solutions and peer-to-peer payment applications.
5. Online shopping has the highest return rate Research shows that ordering multiple items and keeping only one when shopping online is more common among Generation Z, who are therefore also the consumer group with the highest online shopping return rate. Retailers can respond by charging a return fee, adding more size and sizing information to product descriptions, adding more customer reviews, or reminding customer service to help customers who purchase multiple sizes of the same item to minimize return rates. Editor✎ Ashley/ Disclaimer: This article is copyrighted and may not be reproduced without permission. |
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