How brands can engage Generation Z and beyond in a $6 trillion e-commerce market

Marketing efforts mean nothing if they don’t drive business growth, and for most companies, that ultimately means increasing sales. Consumers are increasingly making these transactions online, with the global e-commerce market expected to be worth $6.3 trillion in 2024, up from $5.8 trillion last year, and expected to grow 23% by 2027 all retail purchases will be made online.

Accordingly, new digital ways to purchase have emerged. Between 2019 and 2023, the number of e-commerce sites worldwide increased from 9.2 million to over 26.2 million. As brands recognize the need to promote audience-centric shopping as part of a holistic, modern marketing strategy, they are actively exploring how to bridge the gap between cultural relevance, digital experiences and checkout.

One fast-growing example is TikTok’s e-commerce tab, TikTok Shop, where YouTubers of all sizes encourage consumers to buy with their content. Bloomberg reported the company aims to grow its U.S. e-commerce business to as much as $17.5 billion this year. Meanwhile, Amazon and others are testing metaverse-style shopping experiences, showcasing items for purchase in virtual showrooms for the holiday season and beyond. New retail media networks are also on the rise: there are over 200 today, up from just 40 in February 2022. Not to mention all the other places, online and offline, where consumers interact with brands are not equipped with direct purchasing options.

As potential stops along the buyer’s journey continue to multiply, it’s not enough for brands to simply show up in the digital marketplace. You must understand the unique values, perspectives, and digital comfort zones of each audience and be willing to challenge assumptions. For example, the GALE team’s research on U.S. consumers highlights several generational and gender-specific behaviors that brands should consider when guiding consumers to purchase online.

The study found that more than a quarter of Gen Z consumers do most of their shopping online daily, with habits that suggest they view online shopping as a hobby. They often make impulse purchases out of boredom, retail therapy, and late-night scrolling. Despite their reputation for completely rejecting advertising, nearly half of this generation said they find personalized digital ads that know their tastes helpful when shopping online. Companies should continue to leverage brand-focused, community-centric strategies for long-term brand building with Gen Z, but they should also view Gen Z’s online shopping experience as just that – an experience they love and that brands can improve. In fact, research from Tinuiti shows that Generation Z is three times more likely than older generations to opt-in to tracking prompts like Apple’s App Tracking Transparency to see more relevant advertising.

GALE’s research also found that men tend to be more impulsive online shoppers than women, who are more likely to abandon their shopping carts at checkout. For example, 41% of women compared to just 25% of men said they would not place an online order if they did not meet the minimum requirements for free shipping. This backs up research from CNBC and Acorn that shows that despite stereotypes of women as frivolous spenders, men are just as likely to make impulse purchases and spend more than women. As the barrier to getting women through the online checkout process becomes higher, brands also need to achieve cultural relevance and loyalty (outside of the time when this audience is actively engaged in shopping).

These are just a few of the many nuances that marketers must consider and examine more closely through the lens of their specific target audience in order to drive overall business growth.

Marketers must recognize that the digital marketplace, like any other piece of the puzzle, is not a one-size-fits-all environment. Online shopping habits are diverse and will continue to evolve as the market itself evolves. Developing tailored omnichannel experiences, supported by community- and audience-centric brand strategies, will enable companies to connect with consumers more effectively – before, during and after their shopping experience, wherever and however they choose to shop.