{"id":65660,"date":"2025-05-19T12:08:33","date_gmt":"2025-05-19T17:08:33","guid":{"rendered":"https:\/\/www.shipstation.com\/?p=65660"},"modified":"2025-10-14T09:56:49","modified_gmt":"2025-10-14T14:56:49","slug":"the-future-of-social-shopping","status":"publish","type":"post","link":"https:\/\/www.shipstation.com\/blog\/the-future-of-social-shopping\/","title":{"rendered":"The Future of Social Shopping: What Retailers Need to Know About Gen Z and Millennials"},"content":{"rendered":"\n

After years of rapid growth, online retail businesses have reported an unexpected stagnation, especially in more developed economies like North America and Europe. After the initial boom of 2020 and 2021 caused by the pandemic, the ecommerce market is facing more challenges and not necessarily straightforward growth.<\/p>\n\n\n\n

To help you navigate the evolving landscape of social shopping, we surveyed<\/a> 8,000 consumers of all ages, as well as over 400 decision-makers. Combined with official national statistics, we put together a 2025 benchmark report on the state of ecommerce<\/a> and the role of social media in its future.<\/p>\n\n\n\n

A Cultural Shift Led by the Younger Generations<\/h2>\n\n\n\n

For Millennials and Gen Z, online retail isn\u2019t just about the convenience of next-day delivery and single-click purchases. We\u2019ve noticed a clear spike in young people prioritizing worthwhile experiences and engagement when shopping online, which has been akin to in-person shopping for a few decades prior.<\/p>\n\n\n\n

The Numbers Are Clear<\/h3>\n\n\n\n

The rise in demand for social commerce isn\u2019t based on an educated guess or prediction. 74% of Gen Z and 64% of Millennials<\/a> in developed nations reported planning to use social commerce more in 2025.<\/p>\n\n\n\n

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For these generations that grew up alongside the ecommerce market, they expect brands to win them over through innovative and creative shopping solutions rather than only lower prices and faster delivery<\/a>. With the rise of video-based content, reviews, and influencers, social platforms like TikTok and Instagram have become an integral part of the shopping journey.<\/p>\n\n\n\n

Most Companies Are Falling Short<\/h3>\n\n\n\n

Despite social shopping gaining popularity, with 21% of all consumers saying they\u2019d completed a purchase through a social media platform in the past 12 months, only 46% of online retailers support social commerce. They\u2019re losing valuable market share to offshore retail giants like Temu and Shein, which are winning consumers over with exceptionally low prices and a strong social media presence.<\/p>\n\n\n\n

A Closed-Loop Ecommerce Model<\/h2>\n\n\n\n

Previously, online retailers had to funnel users from all over the internet to their websites to secure a sale. Nowadays, younger consumers are more interested in a closed-loop model<\/a>, where they don\u2019t have to juggle multiple websites, accounts, and payment methods.<\/p>\n\n\n\n

Whether it\u2019s a TikTok Shop or an Instagram store, younger generations prefer the seamless blend of entertainment, scrolling, and product browsing. They no longer need to go out of their way to purchase a product if their credit card and address are already saved in TikTok.<\/p>\n\n\n\n

Businesses Are Benefitting From Social Shopping<\/h3>\n\n\n\n

By sticking to social media marketing and commerce, you\u2019ll be able to access all three types of internet shoppers:<\/p>\n\n\n\n