Websites a ‘must’ for younger shoppers, report finds
Young Australian shoppers said retailers will have a hard time surviving in the future without an online presence, according to a study conducted by PayPal.
About 40 per cent of Gen Z (18 to 23 years old) and 37 per cent of Gen Y (24 to 35 years old) shoppers think companies without a website will be unable to survive in the future.
They said businesses need to have an established online presence as this plays a key role in building trust with consumers.
The study showed 32 per cent of Gen Z and 29 per cent of Gen Y shoppers agreed that companies without a website will have a hard time winning the trust of young Australian buyers.
According to PayPal’s study, listing on online marketplaces can also help boost sales.
“Multi-channel retail is an important factor for driving purchasing for younger shoppers,” the study stated.
“Australia’s youngest shoppers said they want the brands they shop with to have a presence via a website, social media or marketplaces.”
Close to half, 45 per cent, of Gen Z and a third, 34 per cent, of Gen Y said they are more likely to shop online with a company who has multi-channel retail presence.
Multi-channel retail also has the potential to drive sales, according to PayPal’s research, with 32 per cent of Gen Z and 26 per cent of Gen Y saying the ability to shop on multiple platforms would motivate them to spend more when shopping online.
According to PayPal, consumers like to move between multiple channels during their buying journey.
“Gen Z and Gen Y like to play the field before committing to a purchase,” the online payments systems site said.
PayPal’s study also showed close to two-thirds, 64 per cent, of Gen Z and 55 per cent of Gen Y compare products online and look for a cheaper version.
About 34 per cent of Gen Z and Gen Y shoppers would purchase an item directly on the company’s website if they found anything interesting on an online marketplace.
“Once again, this reiterates the importance of a website,” PayPal said.
“The website can be an important factor in buyer decision making, especially for younger shoppers, with over a quarter of Gen Z (26 per cent) and Gen Y (29 per cent) having abandoned a purchase because the company didn’t have a website and they thought they were dodgy.”
The study showed more than two in five (44 per cent) Gen Z and 39 per cent of Gen Y online shoppers prefer to shop via a company’s own website.
“This behaviour is demonstrated even when a number of other options are available,” PayPal said. “Despite a business having a marketplace offering, a third of Gen Z (34 per cent) and Gen Y (34 per cent) online shoppers have found an item on a marketplace but then proceeded to purchase it directly through the company’s own website.”
PayPal added two in five Gen Z, 42 per cent, and Gen Y, 40 per cent, agreed that companies who have their own websites have more credibility than those who only sell via a marketplace.