Which generation will splurge this holiday season?
A new survey from ShipStation shows that 28% of Gen Z plan to spend upwards of $1,000 this holiday season, but almost 50% expect the 2024 presidential election will affect what they do. This finding underscores significant differences with older generations, who appear less inclined to spend and are less influenced by political outcomes, the company said.
Distinct generational differences emerged among the youngest and oldest respondents. Gen Z is set to splurge, the highest of any age group. From electronics to experiences, younger generations expect to spend more across nearly every category. Older generations, meanwhile, expect to spend between $250 and $500 on non-essential items, with 22% of Baby Boomers falling into this range. These trends underscore the growing influence of Gen Z and Millennials on the holiday shopping landscape.
In the realm of online shopping, e-commerce marketplaces like Amazon and Etsy remain dominant, with 65% of consumers planning to use these platforms for their holiday purchases. However, a new wave of consumer behavior is emerging, driven largely by younger generations. Nearly a quarter (24%) of shoppers are gravitating toward small or independent brands, while Gen Z, in particular, is embracing social shopping. Forty six percent plan to use platforms like Instagram and TikTok for their holiday gift buying, a stark contrast to just 6% of Baby Boomers. This generational divide is also reflected in the rise of "recommerce," where 22% of Gen Z plan to shop on secondhand marketplaces like Poshmark and eBay, highlighting their preference for more sustainable and unique shopping experiences.
[Read more: Despite slowing economic growth, shoppers continue spending]
When it comes to delivery, 40% of surveyed consumers expect their packages to arrive within three to five business days without paying extra for shipping. Gen Z is the most impatient, with 17% expecting delivery within 24 hours. Additionally, 21% of respondents believe retailers should never charge for shipping—a view strongly held by 30% of Baby Boomers, compared to just 8% of Gen Z. About 16% of all surveyed consumers find it acceptable to pay between $3-5 for shipping.
Generational differences in delivery expectations are clear. While Gen Z is more willing to pay for shipping, Baby Boomers generally demand free shipping. When it comes to returns, 43% of consumers believe retailers should not charge for return shipping—rising to 52% for Baby Boomers, compared to 30% for Gen Z.
"While Gen Z demonstrates more willingness to pay for faster shipping, most still prefer free delivery options—a sentiment echoed strongly by Baby Boomers,” said Chris Karp, chief customer officer at Auctane. “Additionally, flexible and free return policies are becoming increasingly important, as shoppers seek convenience and assurance in their purchases. Retailers can leverage these insights to tailor their strategies, ensuring they meet the diverse demands of consumers this holiday season and ultimately drive sales."
When considering the election, 35% of surveyed U.S. consumers believe it will impact their shopping budget. This sentiment is most pronounced among Gen Z, with nearly half expecting a budgetary influence. In contrast, only 28% of Baby Boomers feel the election will have an effect on their spending. Gender differences also emerge, as 41% of men are factoring the election into their shopping budgets compared to just 29% of women.
[Related: Will 2024 holiday season be ho ho or ho hum?]
"Our survey also highlights the complex interplay between the presidential election and holiday spending, especially among Gen Z, who appear to feel its impact most acutely. As they gain economic strength and spending power, the forces that influence their spending decisions will be critical for businesses to understand,” Karp said.
The research was conducted by ShipStation via research platform Attest. ShipStation surveyed 1,000 U.S. consumers in October 2024 to understand their shopping habits and preferences.