Gen Z Says They're Over Amazon, but Can They Really Give It Up?

NEWS & TRENDING - SHOPPING & DEALS NEWS
Younger generations seem to be disenchanted by the monopolizing retailer giant.
Updated April 11, 2024
Fact checked
woman using smartphone relaxing in her room while surrounded by Amazon Prime delivery boxes

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

In the competitive landscape of e-commerce, Amazon stands out on top, reigning supreme as the go-to destination for online shoppers. However, recent data suggests that not everyone is enamored with the retail giant's dominance. Among the dissenting voices are members of Generation Z, who are showing signs of fatigue and skepticism toward Amazon's omnipresence in the digital marketplace.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Gen Z is tired of Amazon

Thaspol/Adobe laptop showing Amazon logo

According to recent data released by the market research firm Mintel, a notable portion of Gen Z consumers in the United States are expressing weariness with Amazon. The survey reveals that 4 in 10 Gen Z individuals are tired of hearing about Amazon, indicating a growing sentiment of disenchantment among this demographic. Moreover, a significant majority, accounting for 60% of Gen Z respondents, believe that Amazon wields too much power in the retail landscape.

This disillusionment with Amazon is further underscored by the fact that nearly half of Gen Z shoppers are actively striving to reduce their reliance on the e-commerce behemoth. In contrast, the survey highlights that only 20% of Baby Boomers and 40% of Millennials share a similar inclination to shop less at Amazon.

What this could mean

itchaznong/Adobe iphone 6s showing amazon logo

Should the trend continue, it holds serious implications for the retail giant. Bloomberg estimates that Gen Z holds about $360 billion in spending power — more than double what it was three years ago. This fast-growing segment has the power to influence consumer markets and is increasingly more concerned with things like sustainability and ethical business practices than generations before. Many of the gripes Gen Z and others have with Amazon are unfair wages, its impact on the environment, and monopolizing smaller businesses.

Amazon Prime alternatives

Leika production/Adobe man standing at door receiving parcels from delivery boy

While Amazon's Prime membership boasts a staggering global count of 200 million subscribers, with 74% of them hailing from the U.S., there are indications that consumers are open to exploring alternatives. Mintel's research indicates that one-fifth of U.S. adults would consider dropping their Amazon Prime membership if another brand offered the same benefits.

In response to this growing demand for Prime alternatives, competitors like Walmart have stepped up with their own membership programs, such as Walmart+. With perks like free delivery and exclusive discounts, Walmart+ presents a compelling option for consumers seeking a viable alternative to Amazon Prime. Additionally, more than a third of Prime members have also opted to join Walmart+, signaling a willingness among consumers to diversify their membership affiliations.

Furthermore, rumors abound regarding Target's foray into the realm of membership programs. Speculation suggests that Target may soon introduce a membership option akin to Walmart+ and Amazon Prime. While details remain scarce, the move underscores the intensifying competition among retail giants vying for consumer loyalty and market share.

Bottom line

OceanProd/Adobe amazon locker delivery store

As the e-commerce landscape continues to evolve, the sentiments of consumers, particularly those of Gen Z, serve as a barometer of shifting preferences and trends. The fatigue expressed by Gen Z towards Amazon, coupled with the growing openness to Prime alternatives, underscores the need for e-commerce behemoths to adapt and innovate to meet changing consumer expectations.

In this dynamic environment, the emergence of new membership programs, such as Walmart+ and potentially Target's offering, presents consumers with more choices and flexibility in their shopping experiences. Ultimately, as competition heats up, consumers stand to benefit from a wider array of options and the opportunity to save money shopping, signaling a new chapter in the ever-evolving saga of online retail.

Discover®️ Cashback Checking Benefits

  • Earn 1% cash back on up to $3,000 in debit card purchases each month1
  • No minimum deposit, no minimum balance, and no account fees
  • Access your paycheck up to 2 days early with Early Pay
  • 60K+ fee-free ATMs and make cash deposits at Walmart stores nationwide

Author Details

Georgina Tzanetos Georgina Tzanetos is a former financial advisor who has been active in financial media for the past six years. She holds a master's in political economy from NYU, where she studied distressed labor markets.

Want to learn how to make an extra $200?

Get proven ways to earn extra cash from your phone, computer, & more with Extra.

You will receive emails from FinanceBuzz.com. Unsubscribe at any time. Privacy Policy

  • Vetted side hustles
  • Exclusive offers to save money daily
  • Expert tips to help manage and escape debt