Millennials – 3 Factors Driving Higher Online Spending

By Susan Pechman
Published on: February 27, 2017

Millennials may do more with less, but not when it comes to online shopping.  Millennials in the U.S. are known to be frugal – they’re careful about where and how they spend their limited income.  And while they shop more frequently at brick-and-mortar retailers, they spend more when they shop online.

Millennials are learning to do more with less.  And spending has become an art form.  Understanding what is most likely to influence that spend is critical for success today.

NPD Chief Industry Analyst Marshal Cohen

See what we’re seeing . .

Millennials spend more than twice as much per receipt when shopping online in 3 categories:  clothing, electronics and home/kitchen.

3 Factors seem to drive this higher online spending:

  1. Minimum order requirements for free shipping
  2. The ease of comparing prices for higher-ticket items online
  3. Easy return policies for items that often require returns, such as clothing

When shopping online, Younger Millennials (18-24) spend an average of $56.88 per receipt on apparel and accessories.  Older millennials (25-34) average $70.58.

At brick-and-mortar, the average spend on apparel and accessories is $23.98 for Younger Millennials and $24.19 for Older Millennials.

There’s a similar pattern for electronics – YM’s spend $53.45 online, and OM’s spend $66.10.  At brick-and-mortar, it’s $23.96 and $24.83.

Source:  The NPD Group/Checkout Tracking™


Susan Pechman

Susan Pechman

Susan has served as chief marketing officer of The NPD Group, a leading global provider of market information and business solutions, since 2001. Previously she was founder and general manager of Cone Interactive in NYC, a highly regarded marketing and public relations practice in Silicon Alley.

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