In recent years, Gen Z has ousted millennials from the limelight and attracted everyone’s attention, demonstrating notable differences in consumer behavior. This generational cohort has become the object of multiple surveys and studies for one obvious reason: as more and more Gen Zers come of age and build careers, they start shaping the global market. Today, this cohort already represents about $143 billion in spending power, and in the course of the next decade, it will only grow in spending power and market presence [1].
According to eMarketer data [2], half of Gen Zers are already online buyers (though preferring social commerce). Tapping into this audience is a significant opportunity for eBay sellers. If you want to meet the needs of this generation, you need to know who they are, where they start their shopping journey, and what the key drivers of their consumer behavior are. Understanding this cohort will help you prepare for major shifts in buyer needs and priorities that are already underway.
Who are Gen Z buyers?
The term “Generation Z” refers to those who were born between 1997 and 2012 [1]. The oldest of them have already graduated from college and entered the workforce, while the youngest members of this cohort are still in their teens. These consumers are growing up in the aftermath of September 11 attacks and the Iraq War. Their childhood and youth are affected by the global financial crisis, the global pandemic, and the extreme political polarization in the US. All these factors are shaping Gen Z values, outlook on brands and spending habits.
Gen Zers:
- typically live with friends or family
- value constant social connection
- think of their devices as their own version of home
- are highly aware of social and environmental issues
- are looking for jobs that create impact
- prefer casual communication, private messaging and visual messaging
- value authenticity, being “true to oneself”
Meet Gen Z consumers
Environmental issues and recommerce
Racial and ethnic diversity
Spending habits
The consumer behavior of Gen Z will most likely change over the years, because most of them are very young. But at the moment their spending habits are heavily affected by the following factors revealed by the Forrester study [1]:
- Less is more. Over a half of Gen Zers (51%) say that they get overwhelmed by too many product options when shopping
- Relying on recommendations. Nearly half (49%) of US Gen Z online adults say that they make purchases based on recommendations from friends and family. That’s on the same level with Millennials (50%) but much more than Gen X (30%) and Boomers (18%)
- Open to experiments. 59% of US Gen Z online adults are ready to try new products or brands
- Continue to adopt digital payments. Gen Zers are the least cash-reliant of all generations. 37% of U.S online Gen Z adults consider digital payments to be more convenient than cash or credit cards [9]
In addition to this, Gen Z are still studying or early in their careers, so they don’t have the
same budgets as other generations do. For this reason, they are actively seeking value:
- 48% shop most frequently at discount/off-price retailers [10]
- 52% frequently considered “previously owned” products as opposed to new [8]
Gen Z on eBay
On eBay, Generation Z buyers are the second most active generation, topped only by Millennials. In 2022, Forrester and eBay surveyed nearly 12,000 online Gen Z adults in the US, and 31% of them said they had purchased from eBay in the past 3 months. It’s only 2 points down compared to millennials (33%). The survey also revealed that among online marketplaces, eBay is ranked number one in usage by Gen Z shoppers [11].
Compared to other generations shopping on eBay, Gen Z buyers are:
- more likely to shop on eBay for a hobby, collection, or just a personal splurge
- looking for something rare and unique
- more frequent visitors on eBay
- likely to browse the marketplace just for fun
Main drivers of Gen Z shoppers
In general, there are four factors that can help you reach Gen Z consumers. Take them into consideration when creating your marketing content and shaping your tone to reach this buyer cohort.
1. Uniqueness
2. Authenticity
3. Community
4. Optionality
How to win the wallets of Gen Z
Now that you know the preferences and drivers of the new generation of buyers, it’s time to develop a consistent approach to appeal to this cohort. Here’re the key recommendations that will help you win the attention and loyalty of Gen Z shoppers.
Offer them a chance to feel unique and creative
- Invite consumers to get creative with you by offering customization and personalization options
- Make space for shoppers to be creative with your products on social media channels
- Demonstrate a sense of variety and novelty
Avoid stereotypes in your marketing efforts
- Embrace inclusivity in your marketing content and tone
- Connect at the individual level by telling your own entrepreneurial story
- Avoid showing women using products stereotypically associated with them such as cleaning products or makeup
- If your clothing can be worn by all genders consider using the term “unisex” in the title
- Consider sharing your pronouns via your bio on your profile page
- Use people with a range of body types to showcase your products on eBay and social media
Be honest and authentic
- Add pictures of real people and products to your listings and marketing banners
- Clearly express your values in item descriptions or the About section of your Store
- Own up to mistakes (such as delayed shipping) to show accountability and honesty
Promote on their favorite platforms
- Create Tiktoks promoting your items
- Post shoppable stories on Instagram and link them to your eBay listings
- Share valuable content on YouTube: guides, tips, and tricks
Fuel Gen Zers’ passions and interests
- Use Product research to find items that will fuel a wide range of interests and hobbies
- Curate your Store to create specialized categories reflecting your expertise and passion
- Share your own background and interests on your bio: what motivates you to sell your inventory
Help them find the best value for their money
- Sell items at discounted prices and showcase your best deals in Store’s Featured items
- Offer alternative value options such as pre-loved and refurbished items as well as parts and tools for repairing
- Include free local pickup in your shipping options and offer volume discounts for multi-item purchases
Offer them sustainable choice aligning with their values
- Ship orders in eco-friendly packaging
- Offer them a chance to give pre-loved items new life
- Sell long-lasting and reusable products of high quality
Key takeaways
- Give Gen Z an opportunity to feel unique and creative.
- Be authentic and own up your mistakes.
- Be inclusive and avoid stereotypes.
- Share your items on social media popular with Gen Z.
- Offer products they need for their passions and hobbies.
- Offer them smart ways to save and maximize their budgets.
- Use eco-friendly packaging and sell long-lasting reusable items.