Younger Consumers Drive Changes in eCommerce

Younger consumers are expected to continue driving eCommerce changes. As we have previously covered, the COVID-19 pandemic accelerated the shift to eCommerce shopping. While this trend covered all age groups, it was particularly pronounced among younger consumers. Overall, 54% of consumers shifted more of their shopping online after the pandemic compares to the previous year. Sixty-seven percent of young consumers reported making this shift, the largest percentage among any age group.

Who are Young Shoppers?

It depends on the definitions being used, but broadly speaking, young shoppers usually include shoppers in their twenties or early thirties. This would cover young Millennials (Millennial years are between 1980-2000, although some definitions put their birth years between 1981-1996) and Generation Z, or Gen Z (Gen Z years are usually 1997-2012 or 1997-2015).

For Generation Z, they have never known a world without internet, or even a world without Amazon. They are the most connected and online generation in human history.

Younger consumers are moving toward city centers. While this trend was partially derailed and reversed by the COVID-19 pandemic, realtors report that young people are once again returning to city centers with the promise of a COVID-19 vaccine.

Younger consumers are also more educated and more diverse than older generations. They’re also worse off economically than previous generations were at their age. They spend differently, which is partially because they achieve traditional milestones such as marriage or buying a home later than previous generations.

Young Consumers’ Online Shopping

Among young consumers, like with older generations, people with higher incomes account for a larger share of online spending than people with lower incomes. In terms of online purchasing, low-income, black and Hispanic groups are among the fastest-growing populations.

Younger shoppers report increased interest in ethical issues, such as supply chain transparency and sustainability. While shoppers are indeed more interested in ethical issues when buying products than they were in the past, all shoppers remain most interested in value, product, and convenience. This includes young shoppers.

Declining Shopping Time Across All Generations

According to the Census Bureau, the amount of time that Americans spend shopping every week has declined by one-fifth over the 13 years leading to 2017. This means that the average consumer is spending 20 fewer minutes shopping every week.

Rather than reflecting a declining interest in shopping, this trend is probably driven by increased shopping efficiencies. Consumers have more choice in deciding where and how to shop, and have many more shopping channels available to them than in the past.

What’s an Online Retailer to Do?

Clearly, the retail landscape is changing. Consumers have more choice than ever, and they also have higher expectations than ever.

Retailers should provide an eCommerce website that is convenient and provides and easy purchasing experience from start to finish. The internet has also given retailers access to consumers they never would have been able to reach before, including people with limited transportation options, or people who likely never would have encountered your products in a brick-and-mortar setting. There is tremendous opportunity for businesses that are willing to take the time and invest in delivering the type of convenient experience that their customers expect.

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