How Gen Z is shaping the future of eCommerce?

Z may be the last letter in the alphabet, but Generation Z, as the first generation to grow up entirely in a digital world, is the most influential and “most disruptive” generation ever. With an estimated population of 2.56 billion worldwide and a combined purchasing power of $143 billion , Gen Z and their expectations are what businesses have to pay attention to these days.?

And let me tell you: They are full of surprises (woe, I sound old...)

They do not care about conventional journeys, old-school experiences, or outdated marketing tricks. But your success depends on them since they are fast becoming an economic powerhouse and will affect which businesses will grow and which ones are doomed to die.

This is what you need to know about them:

1. Convenience. Convenience. Convenience.

Gen Z is spending 10.6 hours engaging with online content every day. Expectedly, as the first digital natives among us, their purchasing habits are greatly influenced by the internet.?

This makes convenience (something they are extremely addicted to thanks to the internet) a main priority for them when it comes to shopping. Members of this generation have no time for the hustle and bustle. If they want something, they want it now and in the easiest way possible. And online shopping is the one that fits their fast pace. What eCommerce businesses need to fulfill their expectations is to create a seamless experience - you know, fast browsing, fast cart building, fast checkout , and fast delivery.?

2. Shopping - whenever, wherever.

Shopping, for them, is an always-on activity. It can happen at any moment - in a store or on social media.

Speaking of online shopping, let me also clarify one thing: For Gen Z, there is no strict line between online and offline shopping. They love online shopping because it provides them with the ability to shop from their mobile devices, compare prices, and read reviews at their fingertips.?

But they love physical stores, too - consider it a social excursion, a backdrop for their online identity. 53% of Generation Z say that they would prefer to shop with a brand or a retailer that has both a physical store and an online store. You know what this means, right? You need a strong omnichannel strategy.?

3. Let inspiration lead the way.??

Inspiration is the driving force behind purchasing decisions. The more emotionally engaged people are, the more likely they are to act on something, whether it is a product, an image, or a story. One study shows that 51% of Gen Z visit shopping websites when seeking inspiration. After all, isn’t that how the shopping journey starts these days? The ability to envision how an item or experience will fit into one's life can be the difference between browsing and purchasing. And that’s what inspiration is all about in the context of eCommerce.

And I think the fact that YouTube is overwhelmingly the first choice for product search says so much about the power of video content and why eCommerce players need to make it a part of their marketing efforts.?

4. Personalization is the path to winning hearts.?

This should not come as a shock in this era. We all want experiences tailored to our own tastes. Why wouldn’t Gen Z? According to a study , 96% of Gen Z shoppers are more likely to continue shopping on a retailer website that offers a personalized experience.

Amid the increasing privacy concerns, eCommerce businesses need a practical solution. I’d say it is Zero-Party Data. (Check my article about it from this link if you want to learn more.)

One interesting note: A recent study from Raptor shows Gen Z want brands to stop “grouping all gen Zers together into a single stereotype” and start “recognizing the sub-cultural nuances between different groups” and hope they’ll be “recognized as individuals” - that means style, interests, hobbies, political beliefs, and principles.?

5. No alternatives to the conversation.

Who would listen to someone constantly talking but not listening at all? You would end friendships for this exact reason, let’s be honest. So why do you expect consumers to be OK with not having a voice??

Gen Z is definitely “the” generation that will not accept it. They want to be a part of this conversation. Building communities and giving them a voice will be vital for businesses getting ready for Gen Z consumers. Who knows, these conversations can inspire many innovations too!?

6. Authenticity is their language.?

They want the “real stuff,” not the highly curated, edited, and polished version of your reality.?

According to a study by EY , authenticity is even more important than future plans and being rich; they're not looking for perfection.?

Remember, they were born into a digital world that offered them a vast amount of information every step of the way. So, they are good at spotting “the insincere.”

7. Be purposeful, or get canceled.

This generation places a high value on purpose (the old world calls it social responsibility) and is more likely to support brands that prioritize purpose over profit. In fact, studies have shown that Gen Z is more likely than other generations to actively seek out brands that align with their values and avoid brands that do not.?

And while you are working on it, don’t fall into the trap of tokenism and woke washing. If you are not going to take meaningful action that can generate positive change, just don’t talk about it or don’t pretend as if you are doing something.?

8. Brand loyalty is a one-sided romance.

While they can be loyal to brands that meet their needs and align with their values, they are more likely to switch brands if they find something better or if a brand does not live up to their expectations. Only 34% of Gen Z says when they find a brand they like, they stay loyal to it.?

There are over 24 million eCommerce sites worldwide, according to Statista - including large and small retailers. So, in such a highly competitive environment, you have to do what it takes to stand out in the crowd and make yourself an indispensable part of their lives.?

In conclusion,?

Gen Z's online shopping habits and expectations are reshaping the e-commerce industry. Whether you’ll build a long-lasting connection with them or not is up to you and the next steps you will take…