The holiday shopping season is upon us, and consumer habits are shifting dramatically across generational lines. According to a new survey by ShipStation, younger generations like Gen Z are redefining holiday spending and shopping behaviors, while older generations maintain more traditional habits. Here’s a closer look at how these trends are shaping the 2024 holiday retail landscape.
Gen Z leads holiday spending
This year, Gen Z is setting the pace for holiday budgets, with 28% planning to spend over $1,000—more than any other age group. From high-tech gadgets to unique experiences, younger generations are prioritizing larger investments during the season. In contrast, older generations are more frugal, with many Baby Boomers expecting to spend between $250 and $500 on non-essential items.
These trends illustrate the growing economic influence of Gen Z and Millennials, as their spending habits drive a significant portion of holiday retail.
While Gen Z demonstrates more willingness to pay for faster shipping, most still prefer free delivery options—a sentiment echoed strongly by Baby Boomers.
Chris Karp, Chief Customer Officer at Auctane
Social commerce on the rise
Social media platforms like Instagram and TikTok are becoming the shopping destinations of choice for younger consumers. Nearly half (46%) of Gen Z shoppers plan to purchase gifts through these platforms, compared to just 6% of Baby Boomers. Additionally, 22% of Gen Z plan to buy from secondhand marketplaces such as Poshmark and eBay, reflecting their interest in sustainability and unique finds.
While ecommerce giants like Amazon and Etsy remain dominant—65% of consumers plan to shop there—the rise of social commerce and recommerce is creating new opportunities for small and independent brands to connect with younger audiences.
Free shipping and flexible returns are must-haves
Shipping expectations are another area where generational differences come into play. Across the board, 40% of shoppers want their packages delivered within 3-5 business days without paying extra. Gen Z, however, stands out for its impatience—17% expect next-day delivery.
While Gen Z is more willing to pay for faster shipping, Baby Boomers strongly advocate for free shipping, with 30% believing it should always be free. Return policies are also a key consideration: 43% of consumers think return shipping should be free, rising to 52% among Baby Boomers.
“While Gen Z demonstrates more willingness to pay for faster shipping, most still prefer free delivery options—a sentiment echoed strongly by Baby Boomers,” said Chris Karp, Chief Customer Officer at Auctane. “Retailers can leverage these insights to tailor their strategies, ensuring they meet the diverse demands of consumers this holiday season and ultimately drive sales.”
The findings reveal critical insights for retailers preparing for the holiday season. To capture the attention and wallets of younger generations, focusing on social media, sustainability, and seamless online experiences is key. At the same time, offering competitive shipping and return policies will appeal to older shoppers who value convenience and affordability.
By understanding the unique preferences of each generation, businesses can fine-tune their holiday strategies, driving sales and building loyalty across diverse consumer groups.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
