The Role Millennials Play Towards the Growth of E-commerce

Were you born between 1981 to 1996? Then congratulations, you are a millennial, but chances are you already know that. The millennial generation grew up in a time when the economies around the world were booming, markets were being liberalized and more advanced technologies were seeing the light of the day. You grew up watching Science Fiction movies and shows that prophesied flying cars and large cities filled with steel structures by 2020/30. Well, you were not wrong about that part about steel structures, and as far as flying cars go, since we now have self-driving cars, the era of flying cars is approaching fast.

How it was

The millennial generation has grown up during an age that has seen the rise of the internet and the birth of the internet industry. They have seen the rise of big tech and are aware of the marketing tactics being employed against them by companies to advertise their products and ensure that the consumers spend as much time as possible looking at their products and become lifelong customers.

One of the biggest industries that has emerged ever since the internet became the next frontier is the e-commerce industry. No one could have predicted the scale of today's e-commerce industries when they first started during the early days of the internet. One of the key reasons behind the rise of e-commerce has been the change in demographic around the world.

How is it now with E-commerce Retail?

For millennials, grocery meant rushing to the nearest physical department stores and supermarkets or just a quick walk to the nearby neighborhood shop with a grocery bag. You carried cash with you or a card if the retail shop was a bit fancier with those fancy credit card payment machines. Your parents still used checks to pay for their utilities and other bills and expenses. All you knew about retail shops was that they were either very big, had their own parking, and gave discounts you just couldn't find anywhere else or small neighborhood shops selling at the maximum retail price but much more convenient for you to visit.

The introduction of the internet has transformed our daily lives wherein we are always connected to the internet. E-Commerce is one of the many internet revolutions that has transformed human society and civilization. People are now able to shop from the comfort of their homes and get the best possible prices without having to physically go through 5-6 supermarkets for the best possible price. You are now able to see reviews left by other satisfied or dissatisfied customers on the product/service review pages or on third-party review pages which allow you to make an informed decision about your purchase.

What is E-commerce Retail?

E-commerce retail in essence is a retail business that is now selling things to you through the internet providing you with the convenience to shop from any place and at any time. You can now order something in the dead of the night and get it delivered first thing in the morning. This is the power of E-commerce retail, and it has captured the imagination of modern customer who now needs their orders as soon as possible.

E-commerce allows you to look at 10 different options for the same category of product you are looking to buy and offers you the best prices at which the vendors are willing to share their wares. You can access any E-commerce platform through your smartphone and place an order for the goods you want to buy.

How are Millennials affecting E-commerce Retail?

E-commerce retail has made the shopping experience much easier, but the times are now once again changing. During the early days of E-commerce retail, Generation X was driving the change in consumer behavior as the generation was in the prime of their lives and careers, was having/raising kids, and welcomed the benefits of E-commerce retail.

Now that millennials (Generation Y) are replacing the older generation as the ones with the most economic power and resources, there is a demographic shift in consumers and consumer behavior. Millennials have grown up with technology and are much more educated and aware of the minute details of the uses of technology in marketing and advertisements. Millennials are more inclined toward buying quality goods from small businesses or vendors that are not on the big E-commerce platforms but ensure quality in their products. There has been a paradigm shift in the online behavior of consumers with the introduction of social media.

The Social Media Factor

Social media has dramatically affected the buying behavior of millennials as well as later generations as people are more likely to buy something when they see someone else using the same product and educating the people about the same as it automatically leads to consumers trusting a brand or product they have never used before. The rise of social media marketing as a legitimate means of generating leads and increasing sales has caused a chain reaction among E-commerce retail platforms. More and more E-commerce giants are now utilizing social media for promoting their platform and their brands.

The millennial generation is also more aware of social issues and is more inclined to buy something that supports a social cause or a national cause. This shift in consumer ideals and focus has forced E-commerce retailers to re-strategize their marketing and business ideas and models to accommodate this new demographic of consumers that are in their prime, both financially and health-wise.

The future of E-commerce has now become tied up with social media platforms and faster deliveries and higher discounts. The millennial consumer is ready to trust a small, unknown vendor/manufacturer if he/she gets the quality of the product he/she desires, and this has made quality the number 1 criterion for a product to survive and compete in the market. Millennials are more than happy to pay a premium price if it gets them a product that satisfies their need for quality and long-term value. Millennials are not easy for E-commerce retail to deceive as they are not too hung up on brand names and even if they are loyal to a brand, they are open to options that are more economical and value for money.