Dan Edelman, General Manager, UK Merchant Services at American Express reveals how Gen Z and Millennial shoppers are changing the retail landscape:
Rising to the challenge of appealing to younger generations of shoppers is vital for any retail business to achieve continued success. With greater choice in where and how they shop than any generation before them, understanding shoppers from the Gen Z and Millennial age cohort perhaps presents the biggest challenge in today’s retail landscape.
What has become clear is that younger consumers are not just buying online – they’re curating experiences across multiple platforms; comparing prices, checking reviews, scrolling social media for the latest inspiration on the next haul. For e-commerce merchants, the opportunity lies in understanding how these consumers navigate the digital retail ecosystem, ensuring their brand or products shows up in the right place, at the right moment.
American Express’ recent Spending Spotlight research uncovered some specific preferences of how Gen Z and Millennial consumers are engaging across online retail channels – with implications on what merchants might do to respond.
Reviews as conversion catalysts
Review platforms are fast becoming the most trusted purchase validators for young consumers. For retailers selling through online platforms, seller ratings and product reviews aren’t just ‘nice to have’ – they’re business-critical.
More than half of Gen Z and Millennials (53%) trust online reviews over any other form of recommendation. With nearly a quarter (24%) willing to switch to a different retailer based on a positive review alone, encouraging customers to leave feedback after a purchase can help build trust and drive conversion. Furthermore, 60% of younger consumers check reviews before buying small-ticket items, rising to almost three-quarters (73%) for larger purchases – a reminder that every review counts, no matter the basket size.
Social media meets marketplace
Younger consumers aren’t just scrolling for fun – they scroll to shop. Social media platform are more than just platforms, they are product discovery engines. For brands, the key is integrating social with sales. Think shoppable posts, creator partnerships, and channel-specific promotions.
Around one in six Gen Z consumers in our research said social media was a top way to find something new and unique. Those selling through marketplaces should ensure their social presence mirrors the vibrancy of their product range, and that they have clear links to purchase pathways through social platforms.
The power of personalisation
Digitally fluent younger shoppers are savvy about discovering value. Over a third (34%) say they’d switch retailers in exchange for receiving a personalised discount – a clear sign that tailored offers can directly influence purchase decisions. This is something we see through our Amex Offers programme which incentivises first-time purchases and drives up transaction values.
For marketplace merchants, standing out means moving beyond offering low prices. Personalised promotions and loyalty perks can help catch and keep attention. Our research found one fifth (20%) of Gen Z and Millennials are planning to use payment cards that offer points or cashback more often this year, demonstrating that the appeal of being rewarded for their spending continues to shape buying decisions.
Small sellers, big impact
Younger consumers care where they buy from and show a strong preference for backing independent businesses – over three-fifths (62%) of Gen Z and Millennials believe in supporting small businesses year-round, not just during seasonal peaks. As founder and principal supporter of Small Business Saturday in the UK, we know that the one-of-a-kind products that small businesses offer, their individuality and craftsmanship, often give them an edge.
This presents a strong opportunity to lean into storytelling: showcasing what sets your business apart, how your products are made, and the values you represent. Authenticity resonates deeply with this age cohort and can help turn interest into lasting loyalty.
As younger consumers continue to blur the lines between social, search, and shopping, merchants have a growing challenge to build their brand across multiple channels. From reviews to rewards, every touchpoint matters. And while Gen Z and Millennials may have a greater spectrum of expectations than previous generations of customers, our research demonstrates they are more likely to positively engage and spend more when retailers get it right.
