A recent national consumer study conducted by Forter, in collaboration with Talker Research, sheds light on significant shifts in American online shopping behaviors driven by escalating prices. The findings underscore a pressing need for brands to adjust their strategies to meet evolving consumer preferences effectively.
According to the study, 61 percent of respondents have altered their online shopping habits in response to higher prices. Nearly nine out of ten participants reported an overall increase in their cost of living over the past five years, prompting adjustments in spending patterns across various categories. Notably, clothing emerged as one of the top three categories for online expenditures, representing 27 percent of purchases.
Generational differences play a pivotal role in shaping where and how consumers shop online. Sixteen percent of Generation Z respondents reported a notable increase in shopping through social media platforms, doubling the 7 percent average among all participants. Additionally, 19 percent of Generation Z consumers are more actively engaging with online marketplaces, compared to an 11 percent average across other age groups.
Payment preferences are also evolving rapidly, with a quarter of all respondents embracing buy now pay later (BNPL) services for their online purchases. Generation Z stands out as the most comfortable cohort with BNPL, with 53 percent utilizing this option primarily to manage their expenses effectively. Among BNPL users, 56 percent leverage this service as a financial management tool.
To enhance customer loyalty and lifetime value, brands are encouraged to offer compelling incentives and diverse payment options. Respondents indicated that free shipping (63 percent), affordability (61 percent), frequent sales (36 percent), hassle-free returns (34 percent), and loyalty programs (33 percent) are key factors that would encourage regular online shopping.
Emerging payment methods such as digital wallets are gaining traction among consumers, with 20 percent expressing a preference for brands that accept these options. Additionally, 15 percent find brands offering BNPL or cryptocurrency options appealing, while 10 percent favor store credit cards.
However, the study also highlights consumer tendencies towards maximizing benefits amidst rising prices. Nearly half (48 percent) of respondents have contemplated exploiting retailers’ policies for personal gain, including tactics like coupon stacking (50 percent) and reselling high-demand products (15 percent).
These strategies vary significantly across generations, with millennials (20 percent) considering multiple online accounts to capitalize on promotions, and Generation Z (24 percent) exploring shared subscriptions for online services.
