Nearly 90% of Americans have experienced increased costs of living over the past five years, significantly impacting their shopping habits, especially online. A recent survey of 2,000 U.S. adults reveals that consumers now spend the most on groceries (35%), clothing (27%), and home goods (17%) when shopping online.
A significant 76% of respondents attribute these increases to inflation, prompting 61% to change their online shopping behaviors. Conducted by Talker Research and commissioned by Forter, the study shows that consumers are adapting by shopping less frequently (55%), buying only necessities (44%), and opting for the cheapest versions of desired products (34%).
Additionally, over a third (37%) have altered their travel plans for the upcoming year due to higher living costs, with many leveraging credit card points and flight miles more frequently than five years ago.
The study also highlights a shift in shopping preferences and methods. Generation Z stands out, with 16% shopping more on social media platforms and 19% on marketplaces, surpassing the national averages of 7% and 11%, respectively. Furthermore, 42% of respondents regularly use Buy Now Pay Later (BNPL) services, particularly for clothing (43%), home goods (34%), and groceries (20%). Interestingly, 19% of Gen Z use BNPL for rideshares, compared to the national average of 7%.
To counter rising costs, consumers are drawn to online retailers offering perks like free shipping (63%), affordability (61%), frequent sales (36%), easy returns (34%), and loyalty programs (33%). Payment flexibility, including digital wallets (20%) and BNPL options (15%), also attracts shoppers.
Doriel Abrahams of Forter notes, "Consumers are fundamentally changing their online shopping habits due to cost-of-living increases. Brands must evolve by enhancing customer experience and offering appealing perks to maintain loyalty."
Consumers are also employing strategies like stacking coupons (50%) and reselling high-demand products (15%) to maximize their savings, with tactics varying across generations. As Abrahams emphasizes, balancing a great customer experience with managing consumer workarounds is crucial for brands navigating this new economic landscape.
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