Consumers combat cost-of-living increases with shifts in online spending

BROOKLYN, N.Y.—The rising cost of living hasn’t gone unnoticed by the vast majority of Americans, with 90% saying they’ve experienced an increase in the past five years.

How that is shaping their online shopping habits is the basis of a new Talker Research poll on behalf of software-as-a-service provider Forter, which surveyed 2,000 U.S. adults in mid-May about their attitudes and actions related to the changing economy.

More than half (61%) said they’ve altered their online shopping habits, naming inflation (76%) as the reason. The shifts taking place range from shopping less often (55%) to buying the cheapest version of what they want (34%).

One notable finding is that consumers are increasing their use of buy-now, pay-later (BNPL) services. Those using such services often or all the time encompassed 42% of respondents, with Gen Z taking the lead and using this payment method most often (53%).

The items consumers are buying online using BNPL include home goods (34%), which was second to clothing (43%) and ahead of groceries (20%).

Along with BNPL, consumers are showing interest in other financing options such as digital wallets (20%), BNPL using cryptocurrency (15%) and store credit cards (10%).

“The cost-of-living increase means consumers are fundamentally altering their online shopping habits,” said Doriel Abrahams, principal technologist at Forter. “Brands that want to maintain customer loyalty and value in the macro environment must evolve, too. Consumers want more and better from their favorite brands.”

The types of perks sought include free shipping (63%), greater affordability (61%), frequent sales (36%), free and easy returns (34%) and loyalty programs (33%).

And consumers aren’t afraid to re-sell a purchase if they think it can net them some additional cash, with 15% saying they’ve resold highly sought-after products.

See also:

  • Jungle Scout: Online buyers are cost-aware, but comparison shopping has upsides
  • US economy slowed in Q1, but shows signs of resilience: NRF

The post Consumers combat cost-of-living increases with shifts in online spending appeared first on Furniture Today.