Gen Z and Millennial Shopping Trends

Marketers and retailers agree: Gen Z and Millennials are distinctive generations heavily influenced by their relationship with technology, their values, and their social media engagement. They require a unique approach. e-commerce retailers selling to these generations need to understand how to curate their sales approach, marketing, and brand values to meet these economically powerful audiences.  

Who are these shoppers? Millennials were born between 1981 and 1996 (they are anywhere from 28-43 years old in 2024), and Gen Z were born between 1997 and 2012 (they’re 12-27 years old now). Millennials are in a more mature life stage with established careers, getting married, buying homes, having children, etc. Gen Z are still in adolescence, college, and early careers.  

Both generations grew up with the internet, smartphones, and broadband, making their digital fluency a defining trait. While Millennials recall life before tech, they quickly embraced it; Gen Z, meanwhile, has never known a world without it. For this article, we focus on these two tech-native cohorts.

Technology has shaped their way of relating to retail and e-commerce is as natural to them as breathing. Ironically, these generations are also showing increasing resistance to digital marketing tactics, making them harder and harder to convert to sales.  

So what motivates these shoppers? How do they engage with e-commerce brands? What characterizes them? Here’s what e-commerce retailers need to keep in mind when interacting with these generations.  

While many retailers are still moving from multichannel to omnichannel strategies, Gen Z and Millennials are already there. They view brands holistically, blurring the line between physical and digital—a trend known as “phygital.” Think mobile shopping in-store or using digital wallets at self-checkout.

For retailers, phygital means delivering a seamless brand experience across all channels. Order fulfillment is a key part of this, with customers expecting options like buy online, pick up in store or ship-to-home. A partner like Radial helps meet these demands by managing fulfillment across channels.

Millennials and Gen Z often buy on impulse—74% and 63% say they do—but their habits differ. Millennials split purchases between phone and store, rarely using computers, and tend to buy what feels good in the moment. Gen Z is more cautious, often delaying purchases and needing more info before spending over $50 online or $100 in-store, likely due to tighter budgets.

What categories are they splurging on?  

Across the board, Electronics & Technology, Health & Wellness, Beauty & Personal Care, and Clothing & Fashion take the lead for 16-44 year olds.  

Retailers can work with a 3PL partner like Radial to optimize real-time inventory visibility and promote products that fall into these categories, within the parameters of these generations’ “splurge comfort zone”. As we’ve seen with the Stanley cup craze, making sure your 3PL can scale order fulfillment quickly is imperative.  

Both generations prioritize sustainability. Two-thirds say they are likely to buy from brands committed to sustainability, and 69% believe brands need to be responsible for decreasing their carbon footprint. Further, they use their wallets to prove their values, as 54% of Gen Z and 50% of Millennials are willing to pay 10% more for eco-friendly products. Gen Z is particularly known for valuing sustainability, which means retailers can help reduce consumer “green fatigue” by communicating their commitment to the environment in ways that matter to this demographic.  

They can also work with a 3PL partner, like Radial, to use sustainable packaging, reduce carbon emissions with ground transportation rather than air cargo, and drive efficiency with automation and robotics.  

Nearly 75% of Gen Z follows influencers, who shape their buying choices more than traditional ads. They discover products through peer content and influencer posts, with one-third buying from influencer-founded brands in 2023. Social commerce fits naturally into their daily habits, making personalized, shareable unboxing experiences—like those enabled by 3PLs such as Radial—a key opportunity for retailers.

Nearly 75% of Gen Z follows influencers, who shape their buying choices more than traditional ads. They discover products through peer content and influencer posts, with one-third buying from influencer-founded brands in 2023. Social commerce fits naturally into their daily habits, making personalized, shareable unboxing experiences—like those enabled by 3PLs such as Radial—a key opportunity for retailers.

Gen Z is more vulnerable to online fraud—33% have been scammed—likely due to their digital upbringing and trust in online content. As they grow more cautious, they’re becoming increasingly security-aware. Brands can earn their trust by educating them on fraud prevention and showing how they protect customer data.

Understanding Gen Z and Millennials and working with your 3PL to implement measures that meet the expectations of these powerful buying groups will help e-commerce brands maximize revenue and curate customer experiences that generate loyalty.  

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