What’s the Winning Strategy for E-commerce or Marketplaces to Cater to Gen Z Needs?
New generations are driving a revolution in the online commerce landscape, especially with the rise of new social media platforms, sales channels, and marketplaces. Generation Z is leading significant trends in how products and services are bought and sold online. This demographic, born between the mid-1990s and mid-2010s, is shaping fresh consumption patterns fueled by their inherent tech-savviness and a focus on convenience, personalization, and the overall customer experience.
Generation Z and Their Shopping Preferences
A recent study by the Spanish Marketing Association delved into the purchasing habits of Generation Z, uncovering insightful data on how they approach buying decisions, both online and offline. While one might assume that Gen Z, being digitally connected, primarily opts for online shopping, the reality reveals nuances: Approximately 67.8% of Gen Z respondents stated they visit physical stores on a weekly basis, a figure that is surprisingly close to the general average of other generations, which stands at 73.2%.
The Pandemic’s Influence on Shopping Patterns
The COVID-19 pandemic has further accelerated the shift to online shopping but has also impacted Gen Z’s preferences. Nearly 88% of respondents from this generation reported changes in their buying habits due to the pandemic, showcasing remarkable adaptability in response to challenges and shifting environments. Around 80% of respondents make weekly visits to online stores, 12.2% more visits than to physical establishments, suggesting that Gen Z’s purchasing behavior is more unpredictable than initially assumed.
Preferences in the Online Realm
Here, various factors come into play. When it comes to purchasing a specific brand’s product, this generation prefers buying from the brand’s physical store; 52% of respondents opt for this channel over multi-brand or brand online stores, indicating a preference for a personalized and dedicated shopping experience, as opposed to the impersonal nature of digital platforms.
However, when asked about multi-brand stores, Gen Z prefers digital marketplaces over physical ones. This sets them apart from older generations, who lean more towards physical shopping.
Another crucial factor is free shipping and returns, which are significant motivators for online purchases. It’s also essential to provide a secure payment gateway and ensure a seamless checkout experience for Gen Z users. Conversely, delivery times and return policies are identified as significant obstacles for a considerable percentage of this demographic.
The “Phygital” Experience and the Future of Marketplaces
In essence, Gen Z’s shopping behavior reflects a unique blend of digital convenience and an appreciation for physical experiences. Trends indicate that omnichannel strategies will continue to dominate for a generation with strong digital skills but a preference for physical shopping experiences. Businesses and platforms face the exciting challenge of integrating both realms seamlessly.
At Wannme, we assist online sellers and marketplaces with their payment flows. Whether you need to integrate a payment gateway into your e-commerce platform or create automations for your marketplace, Wannme’s intuitive API streamlines these processes.
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