Generation Z is a tech-savvy, ethically minded generation with incredible spending power. Amazon was founded before any Gen Zers were born, and the iPhone debuted when the eldest of the generation was only 11 years old. Capturing market share from this smartphone and online shopping-native generation—now sitting on billions of dollars in disposable income—is a significant opportunity for ecommerce businesses.
Understanding how Gen Z makes purchasing decisions is increasingly important in the modern retail landscape, and if you want to optimize your conversion rate with younger generations, you need to adjust your marketing strategy to get their attention. Explore key Gen Z purchasing behaviors—with tips from ecommerce entrepreneurs who have cracked the code on marketing to this generation.
5 Gen Z purchasing behaviors that influence sales
- They use social media as a research tool
- They listen to influencers
- They care about brand values
- They expect seamless digital shopping
- They want personalization
Gen Z shopping habits are notably different from older generations’ habits; let’s look at some hallmarks of Gen Z consumer behavior:
1. They use social media as a research tool
More than any other generation, Gen Z uses TikTok as a search engine—making social media their primary tool for researching products online. That means brands targeting Gen Z need to invest in high-quality social content more than ever.
“Posting on social media daily is just as important as raising money, especially if you're trying to target Gen Z,” Leah Marcus, cofounder of Good Girl Snacks, explains on an episode of the Shopify Masters podcast.
“We prioritize social media a ton—maybe more than other companies do,” her cofounder Yasaman Bakhtiar elaborates. “We put maybe as many hours into it as we do building out the operations or the sales aspect of the business.”
Yasaman carves two hours out of her weeks to brainstorm and plan social content. On top of that, she schedules filming blocks with her team to make sure enough time is allocated to capturing that content.
If you aren’t able to allocate that much time, consider bringing someone onto your team who can. “It’s really helpful to hire somebody from Gen Z who’s chronically online,” Leah explains. Give them the reins and let them build content tailored for that audience.
2. They listen to influencers
Nearly 57% of Generation Z is likely to purchase a product based on an influencer’s review. Another study found that 32% of Gen Z had recently gained trust in a brand because of an influencer. These statistics demonstrate the power of influencer partnerships and influencer marketing.
How do you use influencer marketing to build brand loyalty and capture Gen Z purchasing power? Lean into authenticity. Find influencers with a genuine commitment to your product who are followed (and trusted) by a consumer cohort in your target audience.
For example, a snack brand could connect with a Gen Z audience by partnering with influencers who already love similar products, as Leah and Yasaman did to promote their pickle snacks. “We reached out to the girls we knew would love the pickles,” Yasaman explains. “We knew they were either pickle connoisseurs already or they ate a similar snack. It naturally felt more organic for them to talk about it in a video because it’s already part of their everyday routine.”
3. They care about brand values
Most Gen Z consumers want to support brands that align with their own values. One study found that roughly 68% of Gen Z view their purchases as a reflection of “who they are and what matters to them.” Gen Z consumers prioritize social responsibility and want companies they buy from to support causes related to mental health, sustainability, and racial and gender equity.
When it comes to sustainability specifically, about 66% of Gen Z shoppers say they prefer companies with sustainable products, and 64% will actually pay more for products from sustainable brands.
To connect with Gen Z customers, it’s essential to be clear about who you are and what you stand for. For starters, you might share your mission statement and your brand values on your website. You might also consider investing in content creation about your business practices, your supply chain, and your point of view on relevant social and environmental issues.
Erika Geraerts, founder of Australian beauty brand Fluff, was tuned into Gen Z’s consumer behavior thanks to her connection with younger cousins, she explains in an episode of the Shopify Masters podcast. That connection translated into a personal investment in Gen Z’s mental health as it relates to beauty, and a brand mission to change the negative messages traditionally coming out of the beauty industry.
“I was emotionally invested in their mental health and the messages that they were receiving around beauty. You have a lot of brands still communicating messaging that isn’t appropriate or that is very subtly not positive within the beauty space. For us, we want to challenge their thinking in a positive way about beauty, about how beauty is connected to identity, and about their consumption habits.”
To achieve this goal, Erika creates founder pieces to share on Fluff’s Instagram and our TikTok aimed at facilitating honest conversations. “We’re very much prepared and welcome constructive criticism or conversation or debate because we think a lot of brands still close their doors to conversations with their customers, even though they say they're listening or they want to have a conversation,” she says.
4. They expect seamless digital shopping
A 2022 study found that after price, the digital experience is the second most powerful driver of customer satisfaction for Gen Z—but many retailers aren’t meeting their expectations. The same study found that “44 percent of Gen Z shoppers expended more effort than expected to complete an interaction.”
Digital experience includes website user experience (UX) and user interface (UI)—how navigable the site is, how easy it is to complete a purchase, and how easy it is to reach customer service or initiate a return.
To meet Gen Z’s expectations for digital experience, make sure nothing stands in the way of your consumer’s purchase. Test your website’s user experience to see how many clicks it takes to go from the homepage to making a purchase, and consider options like recurring subscriptions or customer accounts to simplify repeat purchases.
5. They want personalization
While previous generations might tolerate marketing for a general audience, Gen Z wants things targeted directly to their needs and interests. Roughly 49% of Gen Z will forego online purchases from a brand after an impersonal experience—like an irrelevant banner ad or email marketing message. Tailor your marketing to the Gen Z audience with personalized experiences. Use a customer relationship management system (CRM) to track and organize your customers into segments; then use audience segmentation to deliver tailored marketing messages to each group.
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Gen Z purchasing behavior FAQ
How does Gen Z make purchasing decisions?
Gen Z makes purchasing decisions based on a company’s brand values, online shopping experience, and social proof. Brands can cater to this consumer behavior by offering a seamless digital shopping experience, transparent business practices, and relevant influencer partnerships.
How much does Gen Z spend?
In 2024, Gen Z spent roughly $2.7 trillion; their spending is predicted to increase to about $12 trillion by 2030.
Is Gen Z a big generation?
Gen Z makes up around 25% of the global population, making them the largest generation ever. They are also predicted to be the wealthiest and most multicultural generation in history.
