What Are 10 Surprising Facts About Gen Z's Online Shopping Habits in 2023?

Gen Z is not just a generation of digital natives; they are the first consumers to forge emotional connections with technology. For them, shopping transcends mere transactions; it’s an interactive, fast, and personalized experience. Technologies like augmented reality (AR) cater to these expectations, allowing users to visualize products on themselves or in their environments before making a purchase. For instance, brands like Sephora and IKEA use AR to let customers try on makeup or see how furniture fits in their homes, enhancing the shopping journey. In a landscape where social media and e-commerce are intertwined, brands must communicate in a “shoppable” language that resonates with Gen Z. This generation views shopping as an experience, often starting in digital spaces rather than physical stores. According to GWI, 56% of Gen Z prefers online shopping, driven not just by convenience but by a desire for control, speed, and personalization. Ultimately, technology is more than a tool for Gen Z; it forms the foundation of their relationship with brands. As they navigate their shopping experiences, the emphasis on engagement and personalization will continue to shape the future of retail.

Did you know that 97% of Gen Z shops online using mobile devices? For this generation, a seamless mobile experience is crucial in their purchasing decisions. Websites that aren’t mobile-friendly risk becoming invisible to Gen Z. Social media platforms like Instagram, TikTok, and YouTube play a pivotal role in their shopping journey. Gen Z often discovers products through engaging social media content, influenced by popular trends and opinions from their favorite influencers. Moreover, this generation favors brands that align with their values, such as sustainability, ethical production, and eco-friendly packaging. Competing solely on price is no longer sufficient; brands that emphasize value-driven messaging cultivate genuine loyalty. Interestingly, users who utilize augmented reality (AR) to virtually try products are 40% more likely to make a purchase. This trend is especially prominent in categories like clothing, eyewear, and cosmetics, where Gen Z seeks real-time experiences before committing to a buy. To connect with Gen Z, brands should prioritize inclusivity, diversity, and authentic communication. This generation is skeptical of traditional advertising but responds positively to honest, relatable content.

For Gen Z, shopping is more than just a necessity; it’s an experience that often starts online. With 56% of this generation preferring to shop digitally over visiting physical stores, browsing has shifted from aisles to screens. This change reflects their desire for control, speed, and personalization in their shopping journeys. Gen Z enjoys exploring products at their own pace, examining details, and filtering results based on personal preferences. Traditional product pages no longer meet their expectations. This is where Augmented Reality (AR) steps in. Instead of merely viewing items, Gen Z wants to interact with them. For instance, they can try on sunglasses virtually, visualize how a couch fits in their living room, or apply makeup digitally to see how it looks on their skin. Online shopping has evolved into a dynamic digital stage where brands can engage users more effectively. AR technology enhances this experience, making it more interactive, personalized, and enjoyable. For brands looking to capture Gen Z’s loyalty, leveraging AR is crucial for standing out in a crowded marketplace.

For Gen Z, shopping starts on mobile devices, often through social media. In fact, 74% of Gen Z complete their purchases on mobile, highlighting their preference for a fast, accessible, and visually engaging shopping experience. A desktop-only approach is outdated; mobile interfaces must be quick, clean, and interactive. Interestingly, 28% of Gen Z shoppers begin their product searches on platforms like TikTok and Instagram rather than brand websites. The phrase “saw it on TikTok, bought it” reflects a significant shift in consumer behavior. Augmented Reality (AR) technology aligns perfectly with this mobile-first mindset. For example, Snapchat’s glasses filter allows users to virtually try on products, while Instagram offers makeup try-ons, creating a fun and personalized shopping experience. These platforms enable users to explore products and complete purchases without leaving the app. By facilitating a seamless journey from discovery to checkout—especially when integrated with AR—e-commerce brands can significantly enhance their competitive edge. As Gen Z continues to redefine shopping norms, brands must adapt to meet their expectations for an engaging, mobile-centric experience.

Gen Z is particularly price-sensitive, carefully managing their budgets and seeking out the best deals. However, their purchasing decisions aren’t solely driven by the lowest price. They want to understand the value behind a product and why it’s priced as it is. For instance, a Gen Z shopper might feel just as satisfied saying, “I got it for cheap” as they would saying, “I bought it because I knew its value.” Brands need to go beyond generic discounts to engage this generation effectively. Gen Z can easily spot random promotions versus personalized offers. For example, a timely discount on a favorite brand based on their previous purchases can significantly boost conversion rates. This personalization is crucial. Moreover, the digital shopping experience plays a vital role. Augmented Reality (AR) technology can enhance this experience by allowing Gen Z to interact with products virtually. Imagine a customer using AR to visualize how a piece of furniture would look in their home before purchasing. This immersive experience helps them understand the product's functionality and aesthetic, making them more likely to buy. In summary, to capture Gen Z’s attention, brands must offer personalized experiences and leverage technology to provide deeper insights into their products.

For Gen Z, shopping transcends mere necessity or enjoyment; it serves as a vital form of self-expression. This generation is increasingly mindful of the environmental impact of their purchases. A recent study by First Insight reveals that 73% of Gen Z consumers are willing to pay 10% more for sustainable products. This trend highlights their demand for transparency, ethical production, and social responsibility from brands. However, sustainability goes beyond eco-friendly materials. For Gen Z, value is defined not only by product quality but also by the brand's overall ethos. Fast fashion is losing its allure, while alternatives like secondhand shopping and carbon-neutral delivery are gaining traction. Brands like ThredUp and Poshmark exemplify this shift by promoting reuse and sustainability. In the realm of e-commerce, aligning with these values requires more than just adjusting product offerings; it also involves how products are presented. Augmented reality (AR) can play a pivotal role by showcasing long-term use scenarios, offering styling combinations, and presenting material information interactively. For instance, brands like IKEA utilize AR to help customers visualize furniture in their homes, enhancing the shopping experience. Ultimately, Gen Z wants to know not just what you’re selling, but what you stand for. Brands that embrace this mindset will resonate more deeply with this conscious consumer base.

Gen Z can be a loyal customer base, but their loyalty isn't driven by point accumulation. Instead, it stems from feeling recognized and valued. According to Statista, 76% of Gen Z engages with loyalty programs, yet many lose interest when these programs focus solely on discounts. For this generation, true loyalty begins when brands proactively connect with them. Today's Gen Z consumers expect personalized experiences. They appreciate tailored suggestions based on past purchases, timely offers, and content that aligns with their unique style. For instance, a fashion brand that recommends outfits based on previous buys or a beauty retailer that sends personalized skincare tips can foster a sense of community and belonging. This shift towards experience-based loyalty is further enhanced by augmented reality (AR) technologies. Brands that allow users to virtually try on skincare products, visualize shoes on their feet, or see home decor in their own space create deeper connections. These interactive experiences transform the shopping journey, making customers feel more than just buyers—they become part of a brand's narrative. In summary, for Gen Z, loyalty is about meaningful engagement and personalized interactions, not just rewards. Brands that embrace this approach will cultivate lasting relationships with this influential generation.

Gen Z values efficiency and relevance in their shopping experiences. Their primary question when engaging with a brand is, “Do you know me?” In 2024, nearly 75% of Gen Z reported that AI positively influenced their purchasing decisions. AI is essential in delivering personalized experiences, particularly through tailored product recommendations and enhanced customer service. For instance, dynamic recommendation systems analyze browsing history, purchase behavior, and user preferences to suggest products that resonate with Gen Z. This approach transforms shopping into a faster, more enjoyable experience, often leading to moments of discovery where users find items they didn’t even know they wanted. AI's impact extends beyond recommendations. Smart chatbots provide instant assistance, while personalized notifications keep users engaged with relevant offers. Dynamic interfaces and intuitive navigation further enhance the shopping journey, making Gen Z feel like a valued user. When combined with augmented reality (AR), personalization reaches new heights. Imagine trying on clothes virtually or visualizing furniture in your home before purchasing. These innovations not only meet Gen Z’s expectations but also create memorable shopping experiences that foster brand loyalty.

For Gen Z, shopping has evolved beyond mere transactions; it’s now a form of entertainment. This generation prefers interactive and immersive experiences over traditional product listings. In the U.S., e-commerce platforms popular with 18–24-year-olds are competing not only on price but also on experience. Features like countdowns, badges, rewards, and game-like dynamics are becoming essential in the shopping journey. For instance, platforms like Shopify and Depop are integrating gamification elements that turn shopping into a series of “mini missions,” keeping Gen Z engaged and fostering deeper brand connections. Augmented Reality (AR) technologies further enhance this experience. Imagine unboxing a product in a virtual environment or trying on clothes with AR filters before making a purchase. These interactive elements transform shopping into a narrative that Gen Z wants to engage with. Brands must shift their perspective, viewing users as active participants rather than passive consumers. By offering gamified, interactive, and AR-enhanced shopping experiences, brands not only drive conversions but also create compelling reasons for customers to return, stay longer, and build genuine loyalty.

Gen Z's approach to returns reflects their desire for control, not indecision. Research indicates that they often check a product's return policy before purchasing. If the return process seems complicated or costly, they may abandon their cart. However, Gen Z prefers to avoid returns altogether—they aim to make the right choice the first time. This is where virtual try-on (VTO) technologies come into play. These tools are more than just engaging; they enhance purchase confidence and streamline decision-making. For instance, trying on sunglasses virtually allows users to see how they look on their own face, while testing a lipstick shade against their skin tone in real time helps them visualize the perfect match. Similarly, seeing a pair of shoes on their own feet can significantly influence their buying decision. VTO experiences transcend traditional product descriptions. They enable users to connect with products on a personal level, assessing how well items align with their individual style. By offering a visual and interactive shopping experience, VTO reduces the risk of making a wrong choice, ultimately leading to smarter, more secure purchases for Gen Z.

For Gen Z, shopping is a seamless experience that transcends individual channels. One moment they might be scrolling through Instagram, the next they’re touching a product in-store, and then adding it to their cart via an app. They fluidly navigate between screens, expecting a consistent quality and pace throughout their shopping journey. Questions like “mobile, web, or store?” are irrelevant to them. What truly matters is how well these channels integrate. If they can’t find in the app what they saw in-store or try on items they favorited online, it signals that a brand isn’t fully embracing the digital landscape. This is where augmented reality (AR) plays a crucial role. AR technology bridges the gap between physical and digital shopping. For instance, imagine a Gen Z shopper using an AR filter to visualize a piece of furniture in their room or exploring an out-of-stock color through their phone. These aren’t just tech gimmicks; they are essential tools that create a continuous, uninterrupted shopping experience. By leveraging AR, brands can enhance the shopping journey, making it more engaging and cohesive for Gen Z consumers. The goal is to ensure that every interaction—whether online or offline—feels connected and fluid.

Gen Z has grown up in a digital landscape, making them not only tech-savvy but also open to innovative solutions, especially in payment systems. They often question traditional methods, preferring alternatives that prioritize privacy and transparency. For instance, many Gen Z consumers are hesitant to share credit card information and seek seamless experiences for cross-border transactions. This shift is driving them toward blockchain-based payment solutions. Using cryptocurrencies resonates with Gen Z because it embodies their values of speed, control, and privacy. By enabling transactions without banks or intermediaries, crypto empowers them to manage their finances more freely. Additionally, their familiarity with NFTs and digital ownership aligns perfectly with this trend. In e-commerce, adapting to these preferences is crucial for brands aiming to earn Gen Z's trust. Blockchain systems offer transparency, traceability, and enhanced security, addressing their concerns about digital safety. For example, brands like Nike are exploring blockchain for authenticating digital sneakers, while platforms like OpenSea facilitate the buying and selling of digital collectibles. Moreover, the convergence of augmented reality (AR) and blockchain is paving the way for new shopping experiences, particularly in virtual fashion and customizable digital assets. As these technologies evolve, they will redefine how Gen Z engages with brands and products.

Gen Z is not just changing shopping habits; they’re revolutionizing e-commerce. This generation demands speed, personalization, technology, and values to work in harmony. Brands that understand these dynamics are not just gaining a competitive edge—they’re becoming future-ready. For instance, consider how brands like Nike leverage augmented reality (AR) to enhance the shopping experience. By allowing customers to visualize products in their own space, they create a more engaging and personalized journey. Similarly, Sephora uses AR to let users try on makeup virtually, aligning with Gen Z’s desire for instant gratification and tailored experiences. If you’re ready to adapt your brand to meet these evolving expectations, now is the time to connect with artlabs. Our team of experts can help you integrate AR technology to create immersive shopping experiences that resonate with Gen Z. Don’t miss the opportunity to build meaningful engagement with a generation that’s redefining the future of retail. Reach out to us today and take the first step towards transforming your brand experience.

If you're ready to elevate your brand experience and meet the evolving expectations of today's consumers, now is the ideal time to explore the potential of AR technology. At artlabs, our team of experts is here to help you create immersive and impactful shopping journeys that resonate with your audience. Consider how brands like IKEA use AR to allow customers to visualize furniture in their homes before making a purchase. This not only enhances the shopping experience but also builds confidence in buying decisions. Similarly, Sephora's Virtual Artist app lets users try on makeup virtually, making the shopping process more engaging and personalized. By leveraging AR, you can foster deeper connections with the next generation of consumers who are redefining retail. Whether it's through interactive product displays or virtual try-ons, the possibilities are endless. Don't miss out on the opportunity to innovate your brand's engagement strategy. Reach out to the artlabs team today, and let's take the first step together toward creating meaningful experiences that captivate and inspire.