Baby Boomers Dominate Online Shopping

Baby Boomers, or people aged 65 and older, are the fastest growing segment of online shoppers, according to NPD Group’s Checkout Tracking. Consumers aged 65+ spent, on average, $1,615 online from January through October, up 49% from the previous year. The frequency of purchases among this demographic climbed more than 40%.

Analysts say that while the change is driven by the COVID-19 pandemic, they expect older adults to continue shopping online more frequently even once the pandemic is over. Consumers aged 50 and older spend $7.6 billion in 2018, accounting for 56% of overall consumer spending, according to AARP. This makes them a valuable demographic for businesses.

Previously, Baby Boomers were often overlooked by eCommerce companies, analysts said. Older adults often preferred the routine and social interactions of going shopping in person. Now that the pandemic had disrupted that routine and older adults have learned how easy online shopping is, they are unlikely to return to pre-pandemic purchasing patterns.

The pandemic has altered consumer behavior in ways that retailers did not anticipate. While many major chains have invested heavily in services like delivery and curbside pickup, too often they fell into the trap of assuming that all online shoppers are the same.

How Can Online Retailers Appeal to Older Shoppers?

Online retailers can appeal to Baby Boomers by making it easier for them to shop online. This could include offering easy custom service options, videos demonstrating the shopping process, and providing detailed product information such as nutritional content. Instacart created a service that helps older adults set up their accounts, and hundreds of thousands of shoppers have happily used it to set up new accounts.

Retailers should also have an easy-to-use website and should use past order history and other data to make good product recommendations. Please see here and here to see our past posts on the subject of how to provide a good eCommerce experience for your customers.

A Hybrid Model: Shopping In-Store and Online

After the pandemic ends, analysts expect that older adults may continue to shop online using a hybrid model where they buy some items online and some in-store. This is particularly true for retailers like grocery stores where older adults may want to choose their vegetables themselves but prefer to order other items like cereal or toilet paper online.

Meeting Your Customers Where They Are

For retailers, the secret to appealing to Baby Boomers is no different from the secret to appealing to any other demographic. It’s about giving people the experience they want and making it easy for them to find and buy your products.

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