As the first generation to grow up with social media, it’s no surprise that Gen Z has had a profound impact on social commerce. For brands, this means understanding how Gen Z uses social media to make purchase decisions and adapting their social commerce strategy accordingly.
As the oldest members of Gen Z enter adulthood, they’re having a profound impact on social commerce largely due to their unique relationship with technology. They grew up with the internet and social media, making them more comfortable with digital communication and transactions compared to previous generations.
In this post, we’ll look at how Gen Z’s shopping behaviors are directly impacting the way brands use social commerce, and what brands can do to ensure their strategies are successful moving forward.
What is social commerce?
Social commerce is a form of e-commerce that involves social media, online communities, and user-generated content. It is a relatively new phenomenon characterized by its use of social media platforms to facilitate the buying and selling of products and services.
While social commerce is still in its early stages, it has the potential to revolutionize the way we shop online. By making it easier for users to find and share information about products and services and shop directly from social platforms, brands have the potential to make the shopping experience more efficient and enjoyable.
Gen Z shopping behaviors are leading to the rise of social commerce
As Gen Z grows into adulthood and gains more spending power, they’re entering the world of consumerism with their own ideals, creating new shopping trends for brands to keep up with.
Here are some commerce trends fueled by Gen Z shoppers.
Gen Z is all about sustainable shopping. This is largely due to the fact that they’re more environmentally conscious than any other generation before. They’re willing to pay more for products that are eco-friendly and that will help reduce their carbon footprint. In addition, Gen Zers are also interested in supporting environmentally responsible businesses.
Gen Z is very mindful of over-consumerism, which results in them spending less. They’re willing to save for items they really want or need, and are also willing to wait for sales or discounts. Seeing previous generations struggle financially throughout recessions has made them more budget-conscious consumers.
Supports ethical businesses
There’s a growing trend among Gen Z consumers to support ethical businesses. This generation is highly aware of today’s social and environmental issues and they want to support businesses that have a positive impact and that align with their personal values.
Prefers mobile payments
Gen Z is spending more on mobile payments than any generation before. The vast majority of them are comfortable making mobile payments, and many see it as a more convenient way to pay than using cash or card. This preference holds true both in stores and for online payments, such as with contactless payments.
Looks to influencers
Influencer marketing is poised to become even more important in the coming years as Gen Z turns to their peers and trusted influencers for recommendations. This generation is less trusting of big brands and traditional marketing methods, instead turning to people they know, or influencers they feel they can rely on when it comes to making a purchase decision.
How is Gen Z contributing to the growth of social commerce?
The market size for social commerce was estimated to be valued at 584.91 billion USD in 2021 and is set to grow at increasing speeds before the end of the decade, with a projected market value of 6.2 trillion USD in 2030. In large part, this booming shopping trend is due to Gen Z, who dedicate a lot of time to browsing social channels.
Let’s take a look at a few statistics of just how much of an impact Gen Z is having on the current rise of social commerce that we’re experiencing today:
- 97% of Gen Zers turn to social media as their main source of shopping inspiration
- On TikTok, 61% of users have bought from brands they’ve seen advertised on the platform
- 54% of Gen Zers say that social media is better than online search when it comes to discovering new products
- When shopping online, 60% of Gen Zers prefer to buy directly from the source rather than on a marketplace like Amazon
Given the increased use of e-commerce on social platforms, it’s more important than ever for brands to implement a social commerce strategy that captures a young and increasingly influential audience.
How can brands up their social commerce game to keep up with Gen Z?
Brands who want to succeed don’t only need to stay afloat throughout the rise of social commerce and Gen Z-led shopping trends, they need to embrace the changes and implement new strategies.
These are a few ways brands can remain competitive in the social commerce space:
Utilize influencer marketing
Leverage the reach and engagement of influential social media users in order to connect with a younger audience. By working with influencers who have a large and engaged following, brands can tap into new audiences, drive traffic and sales, create brand awareness, and amplify their reach and impact.
Ensure you’re operating ethically
As Gen Z look to purchase from brands that align with their ethics, brands need to consider their own operations to match their customers’ expectations. Brands can operate more ethically by being transparent about business practices, being honest in marketing and advertising, and treating employees and customers fairly.
Simplify payment options
Mobile payments, in-app payments, and buy now pay later options encourage more sales and customer loyalty. As social media platforms are constantly changing and adding new features, it’s essential to ensure payment methods are up-to-date and easy to use.
Prepare omnichannel strategy
A multichannel commerce strategy is a good start, but it may not be enough. You need an omnichannel strategy to better understand your customers’ needs. In turn, this can improve your social media presence and conversions by creating a seamless experience across channels. By integrating social media into their overall commerce strategy, brands can provide a consistent tailored experience for customers no matter where they shop.
How Cymbio helps brands grow their omnichannel strategy
An omnichannel strategy involves providing a seamless experience for customers across all channels, including online, in-store, mobile, and social media. The problem brands are facing with this type of marketing strategy is that syncing all of these experiences requires a lot of resources.
That’s where Cymbio comes in.
To help smooth the implementation of your omnichannel strategy, it’s important to use the right tools that will help you become as efficient as possible while using minimal resources and budget. With Cymbio, brands can sell their merchandise on a number of channels, such as retailer websites, marketplaces, and social media, while controlling all inventory and sales from one platform.
Cymbio enables you to solidify your social commerce and omnichannel strategy by:
- Allowing you to scale your digital sales and expand to new channels
- Integrating with your existing e-commerce platform, such as Shopify, Magneto, WooCommerce, and others
- Minimizing time-to-market for selling on new channels
- Automating manual order management tasks to provide quick service and a better customer experience
While there are many benefits to implementing an omnichannel strategy, it’s important to keep in mind that it’s not a one-size-fits-all solution. Every brand is different, and what works for one may not work for another. Cymbio can help you find a solution that fits your unique needs.
To wrap up
Gen Z is only going to grow in influence as they age, so brands that work towards catering to this demographic now are in a better position to set themselves up for success later. Tackling your omnichannel strategy now is one of the most effective ways of accomplishing this, and Cymbio is there to help you seamlessly sell on new social and digital channels.
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