Social media influence, algorithmic recommendations, and new payment options are driving impulsive online shopping behavior. 

Recent data and insights shed light on the factors contributing to increased digital spending and larger purchase volumes.

CNN cites data from digital marketing platform Dynamic Yield, revealing that the average number of items per transaction in the Consumer Goods category has reached a 12-month high, with nearly 11 products per order. 

According to CNN, this surpasses the figures from the previous holiday shopping season. 

The average value of digital carts has also peaked at $206 per order, marking a $50 increase from June.

Social Media’s Impact on Consumer Behavior

Social media platforms are increasingly significant in shaping consumer behavior. 

In the past year, YouTube reports that people watched over 30 billion hours of shopping-related content on its platform. 

In response, the company launched YouTube Shopping in 2023, allowing content creators to tag products from brands featured in their videos and earn commissions on sales.

TikTok has also entered the e-commerce space with TikTok Shop, launched in 2023. 

The platform now boasts over 500,000 sellers in the U.S., including major brands like L’Oreal and e.l.f. cosmetics. TikTok claims responsibility for 15% of product discoveries in 2022, aided by viral hashtags such as #TikTokMadeMeBuyIt.

Buy Now, Pay Later

The rise of Buy Now, Pay Later (BNPL) services like Klarna and Afterpay is another factor potentially fueling purchase growth. 

“Those with high levels of materialism as a trait and high levels of impulsivity in purchasing are more likely to be BNPL customers,” Philippa Ward, a marketing professor at the University of Gloucestershire, said in a statement.

However, economists and consumer advocates express concerns about BNPL services.

Research by the Federal Reserve Bank of New York reveals that people with tighter finances, such as those with credit scores under 620, are more than three times as likely to use BNPL multiple times a year compared to more financially stable individuals.

Algorithm-Powered Recommendations

Personalized recommendations powered by algorithms are becoming increasingly sophisticated. 

“The most powerful tools that online retailers have compared to offline (retailers) are algorithms, data processing tools, and information about you,” Matthias Lehner, a researcher at the Centre for Retail Research at Lund University in Sweden, said in a statement.

Amazon exemplifies this trend with its recently introduced AI-powered feature that assists customers in finding the best fit for clothing items based on their previous purchases and sizing preferences.

Countermovement

Despite the growing prevalence of shopping hauls and influencer-driven consumption, a countermovement known as “underconsumption core” is gaining traction on social media. 

As CNN reports, this trend, led by “de-influencers,” advocates against excessive purchasing.

The environmental impact of consumer behavior is also being scrutinized.

According to Remake’s 2024 Fashion Accountability Report, the fashion industry is estimated to be responsible for 2 to 4% of global greenhouse gas emissions.