Why half of Gen Z consumers are trying to spend less on Amazon
Nearly half of Gen Z consumers are actively trying to reduce spending on Amazon, making the e-commerce giant no longer the first choice among these shoppers.
Market research company Mintel said in a study that about 47 per cent of US Gen Z shoppers are consciously spending less on Amazon, with 60 per cent of them agreeing that the online shopping platform is already too powerful. Around 39 per cent also said they are tired of hearing about Amazon.
“Their shopping habits indicate a preference for personalization over privacy. They are inclined to discover new brands, which may not always align with Amazon’s mass appeal,” said Diana Smith, associate director and client advisor for retail and e-commerce at Mintel.
“Amazon and other mass merchandisers may need to rethink their Gen Z strategy to increase loyalty from this demographic.”
On the other hand, only 20 per cent of baby boomers and 40 per cent of millennials are actively trying to spend less on Amazon.
In addition, Mintel found that one-fifth of US adults would cancel their Amazon Prime membership if another brand offered equivalent benefits.
“Amazon Prime members only use three benefits on average, with Delivery, Video, and Music being the most popular. Amazon should be more active in encouraging members to take full advantage of their Prime program,” said Smith.
“Amazon could likely convert some nonmembers by highlighting that the tangible value of all Prime benefits exceeds the annual fee. This can also help keep current members satisfied.”
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