It’s no secret that young people drive consumer trends. But, how are millennials driving trends for internet retailers?
Sometimes we find answers to questions that we aren’t even asking yet. I’ll explain: We recently surveyed consumers about their experience with fulfillment performance from retailers and marketplaces. The results were fascinating and we’ll be telling you all about it soon.
But while digging through the data we found other insights as well. We found that millennials, roughly defined as consumers under 30 years old, are almost twice as likely to buy from third-party marketplaces as consumers over 30 years old.
What impact will this have on online retailers?
Here’s what I think:
- It will have an impact! Millennials already account for $600 billion in retail sales, and are projected to represent 30% of all retail sales by 2020.
- Millennials are embracing marketplaces because of massive product assortment and lower prices.
- But it’s not only about price and availability. Millennials demand shopping experiences that are genuine and engaging. Retailers shouldn’t treat marketplaces as dumping grounds — product selection matters, even on the marketplace.
- And of course, fulfillment performance matters! 32% of millennials said the Marketplace itself has a “great deal of responsibility” to ensure that products purchased from third-party sellers are delivered rapidly and on time.
For me, the themes are the same across generations. Consumers are demanding the same experience (selection + fulfillment performance) through marketplace and retail. All online sellers need to recognize that and embrace the future.