Route's State of Ecommerce Report: Gen Z to Lead Holiday Spending Surge as 'Wardrobing' Trend Grows

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Nov 19, 2024, 09:00 ET

The research indicates that a single negative experience after checkout can cause shoppers to stop shopping with a brand—while 97% say it's the retailer's responsibility to solve shipping issues

LEHI, Utah, Nov. 19, 2024 /PRNewswire/ -- Route, the leading post purchase experience platform known for its shipping protection, package tracking, and instant issue resolution, today released its inaugural State of Ecommerce Report. This 2024 report provides a comprehensive look at how post purchase interactions—from delivery reliability to return policies—are influencing consumer loyalty and shaping the future of ecommerce.

In an era where customer expectations are at an all-time high, Route's latest report underscores the critical importance of easy, convenient, customer-focused post purchase experiences. Today's consumers, especially Gen Z, expect swift issue resolution, transparency, and reliability—qualities that can make or break brand loyalty. The report reveals that negative experiences, like lost packages or complicated returns, have the potential to end customer relationships, even if the issue is beyond the brand's control.

"The post purchase experience is perhaps the best example of how customer expectations have completely changed ecommerce," said Michael Yamartino, CEO of Route. "Today, a single negative experience after checkout can derail a customer's relationship with a brand, sometimes permanently. That's why we're releasing the State of Ecommerce Report, which provides powerful, fresh insights into how consumers feel not just about their post purchase interactions, but about the state of ecommerce at large. I encourage every brand to consider the implications of our findings, not only as benchmarks but as opportunities for growth and differentiation."

Key findings include:

Consumer spending for Black Friday and Cyber Monday 2024 is expected to remain steady across most age groups, with a notable exception: Gen Z. About one quarter (26%) of Gen Z shoppers indicate they plan to spend more this holiday season than other generations do—a rate twice the average across all age groups. This generation's enthusiasm for online shopping, driven by deals, promotions, and targeted advertising, is reshaping holiday ecommerce trends.

"Wardrobing," or purchasing items with the intent to return them after short-term use, is increasingly common among younger generations. Nearly 40% of Gen Z shoppers report engaging in this practice, compared to only 16% of Baby Boomers. Driven by social media culture and economic pressures, wardrobing has created new challenges for retailers, who are now exploring machine learning tools to detect fraudulent returns.

A single negative experience post purchase can lead to customer attrition. According to Route's findings, 28% of consumers would stop shopping with a retailer altogether if they encountered a lost or damaged package, while 97% of shoppers expect retailers to offer automatic refunds or replacements when shipping issues arise.

Route surveyed 1,250 consumers in October 2024 to assess attitudes and behaviors related to shipping reliability, return policies, and holiday shopping trends. For more information or to download the full report, visit route.com/blog/state-of-ecommerce.

About Route

Route is the leader in the post purchase experience. From discovery to delivery, Route protects brands and their customers with licensed shipping insurance, fast issue resolution, package tracking, carbon-neutral shipping, and remarketing. This helps brands increase revenue, reduce costs, and improve the customer experience—and gives customers the power and convenience of tracking everything they order in one place, with the confidence it will arrive safely. Route helps brands control for the unexpected and transform even negative experiences into opportunities to drive loyalty. Since launching in 2019, Route has built an ecommerce network of 13,000 brands and 3+ million active app users, and tracked more than $15 billion in protected merchandise. To learn more about Route's post purchase platform, or to download the app, visit route.com.

SOURCE Route