Discussion - The Modern Buyer: How Millennials Shop Now

[scene.of.the.crop]

Hi, everyone!

We’ve posted our third installment in “The Modern Buyer” blog series where we are diving deep into the shopping experience today’s buyers expect, and what this means for eBay sellers.

Today’s article covers the most talked about generation, the Millennials. This generation, born between 1980 and 2000, are the largest group of shoppers in the world.

Let us know how you are thinking about the direction for your business in the short and long term as it relates to new buying behaviors.

I’m Jennifer Deal, eBay Seller Marketing Manager, and I’ll be popping in and out of this thread to answer your questions and infuse some discussion points over the next couple of days. Join the discussion below!

[ted_200]

Exactly - who wants to sell to "Most shoppers are frequently returning online purchases"?

Certainly not people selling in a liquidation format like Auctions! 

[gramophone-georg]

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Hi @gramophone-georg, the video was live, and there's a bit of time between the live video and the archive video showing, but the archive video is available for viewing soon.

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Hey everyone, Jen is going live! Let us know if you have questions and we'll answer as many as we can!

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Is it over already? Just keeps trying to load for me...

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Excellent- that worked, thanks.

[ted_200]

I'm not so sure it's just buyers "over 60", either. Record collectors are an odd lot. Lots of them do things the old fashioned way regardless of age. I used to joke that they used cash because then their spouses couldn't see what they were spending on their obsession... but whatever the reason, when eBay forced PayPal for their "protection", the 25 or better percent of my buyers who were straight paper payments ONLY people just melted away overnight.

Exactly.  While millenials aren't a big part of my buyer base, the ones who are tend to think more like the rest of my buyer base (older) than their millenial peers. 

In my case, paper payments were closer to 50% of my sales.  Despite telling them they could continue on just like before once the new policy took effect, every single one of them vanished (and the promises eBay would "re-educate" them and make them into PayPal users went 100% unmet).  You see, they were shopping on eBay, not just from me, and when they couldn't use paper with anyone else (or even tell if they could use paper with certain other sellers), shopping here was just a waste of time for them. 

The problem with focusing on a demographic is that you ignore everyone else. eBay is chasing the same subset of buyers that everyone else's focus groups are telling THEM to chase...

Well, based on this series of eBay Blogs, every demographic / generation is the same... Free Shipping, Automated 60 days Returns, 5 minute Handling Time... Lather, Rinse, Repeat....

[jason_incognito]

i often wonder when a potential new buyer is hit with being forced to sign up to the site, then sign up for PayPal to buy from a seller with that block......

How many buyers do we lose?

[ted_200]

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I won't accept the biggest thing about selling to millenials. Offer free shipping and free returns.  I know a woman who "bought" 6 dresses for 1 function. She will decide the one she's gonna keep and ship the rest back.

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We do see this type of activity on multiple marketplaces with some advertising liberal return policies which for them means removing any barrier or fear a customer would have about their purchases. 

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But what small or medium seller on here has the stock to tie up 6 dresses just to get a valid purchase of (maybe) one, and to pay for shipping to and from the customer? Or even wants to?

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That's the Zappos model.

It works really well for shoes, because sizing/fit is a major issue with shoes, most people wouldn't buy them online if they were going to be shelling out a lot of money on return shipping labels everytime something didn't fit their foot right.  For what I'm selling, this is a non-issue.  A good photo showing the actual item overcomes all of the issues that used to be present when mail order in my niche was conducted from black and white magazine ads. 

It also works for Zappos because they have the cost of this service/benefit priced into their goods.  Since they're THE seller, and there are no other parties selling on their site, they can get away with the higher prices.  And they've built a following of loyal customers, who are willing to pay the higher prices because they recognize the value in the returns/shipping policies. 

This ain't Zappos, and I ain't sellin' shoes.

Here, eBay had the original, and biggest, loyal following (in online selling).  They've squandered a lot of that already, and alienate more of them all the time.   A lot of the people they're trying to cater to now are part of Amazon's loyal following, and they aren't going to capture much of that unless Amazon does something to alienate them. 

[gramophone-georg]

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i often wonder when a potential new buyer is hit with being forced to sign up to the site, then sign up for PayPal to buy from a seller with that block......

How many buyers do we lose?

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They can buy as a guest, but I don't know how the 'no paypal' block works in that case. But you're right- compared to everywhere else, it's far too click heavy here. The problem is... once they back out and leave, I'm willing to bet they'll never be back, especially when leaving here results in a far better experience someplace else when the difficulty of eBay is a fresh experience.

[ted_200]

Excellent point... if the research being cited is really from eleven years ago, it's less than worthless. The Internet and the WORLD has changed drastically since then, and likely NOBODY now shops as if it's 2007!

Right.  In 2007, I could TAKE A CHECK HERE!

[d-k_treasures]

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I won't accept the biggest thing about selling to millenials. Offer free shipping and free returns.  I know a woman who "bought" 6 dresses for 1 function. She will decide the one she's gonna keep and ship the rest back.

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We do see this type of activity on multiple marketplaces with some advertising liberal return policies which for them means removing any barrier or fear a customer would have about their purchases. 

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But what small or medium seller on here has the stock to tie up 6 dresses just to get a valid purchase of (maybe) one, and to pay for shipping to and from the customer? Or even wants to?

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That's the Zappos model.

It works really well for shoes, because sizing/fit is a major issue with shoes, most people wouldn't buy them online if they were going to be shelling out a lot of money on return shipping labels everytime something didn't fit their foot right.  For what I'm selling, this is a non-issue.  A good photo showing the actual item overcomes all of the issues that used to be present when mail order in my niche was conducted from black and white magazine ads. 

It also works for Zappos because they have the cost of this service/benefit priced into their goods.  Since they're THE seller, and there are no other parties selling on their site, they can get away with the higher prices.  And they've built a following of loyal customers, who are willing to pay the higher prices because they recognize the value in the returns/shipping policies. 

This ain't Zappos, and I ain't sellin' shoes.

Here, eBay had the original, and biggest, loyal following (in online selling).  They've squandered a lot of that already, and alienate more of them all the time.   A lot of the people they're trying to cater to now are part of Amazon's loyal following, and they aren't going to capture much of that unless Amazon does something to alienate them. 

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And when Zappos runs sales, the vendor/manufacturer usually has to accept the lowest price possible from them. Then, when the event is over, you better have the stock that you told them you had before the event for what they sold or you get whacked 10.00/pair for what you can't fulfill. So if you had your own website, you have a choice of selling a pair for retail price and taking the 10.00 hit, or hurt yourself by cancelling the full-price sale.

The only plus is that they eat them if the customer returns them. They do not go back to the vendor/manufacturer(unlike Nordstrom.com).

[memphiskansasgirl123]

Next level:  they want the product free, free shipping, and free returns.

[memphiskansasgirl123]

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Is installment 4 going to be the 'post-modern buyer' generation - soon to be born - and how, and what, they are going to buy? 

Whatever they buy, they're going to want Free Shipping, Free Returns, and for you to ship it at least 5 minutes before they buy it. 

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next level:  they want the product free, free shipping, and free returns.

[carlmarxx]

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I'm not so sure it's just buyers "over 60", either. Record collectors are an odd lot. Lots of them do things the old fashioned way regardless of age. I used to joke that they used cash because then their spouses couldn't see what they were spending on their obsession... but whatever the reason, when eBay forced PayPal for their "protection", the 25 or better percent of my buyers who were straight paper payments ONLY people just melted away overnight.

Exactly.  While millenials aren't a big part of my buyer base, the ones who are tend to think more like the rest of my buyer base (older) than their millenial peers. 

In my case, paper payments were closer to 50% of my sales.  Despite telling them they could continue on just like before once the new policy took effect, every single one of them vanished (and the promises eBay would "re-educate" them and make them into PayPal users went 100% unmet).  You see, they were shopping on eBay, not just from me, and when they couldn't use paper with anyone else (or even tell if they could use paper with certain other sellers), shopping here was just a waste of time for them. 

The problem with focusing on a demographic is that you ignore everyone else. eBay is chasing the same subset of buyers that everyone else's focus groups are telling THEM to chase...

Well, based on this series of eBay Blogs, every demographic / generation is the same... Free Shipping, Automated 60 days Returns, 5 minute Handling Time... Lather, Rinse, Repeat....

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My buyers aren't Millennials  !  And I wished would not just go after them.  They aren't  Ebays true buyers.  

[carlmarxx]

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I won't accept the biggest thing about selling to millenials. Offer free shipping and free returns.  I know a woman who "bought" 6 dresses for 1 function. She will decide the one she's gonna keep and ship the rest back.

---

We do see this type of activity on multiple marketplaces with some advertising liberal return policies which for them means removing any barrier or fear a customer would have about their purchases. 

---

But what small or medium seller on here has the stock to tie up 6 dresses just to get a valid purchase of (maybe) one, and to pay for shipping to and from the customer? Or even wants to?

---

That's the Zappos model.

It works really well for shoes, because sizing/fit is a major issue with shoes, most people wouldn't buy them online if they were going to be shelling out a lot of money on return shipping labels everytime something didn't fit their foot right.  For what I'm selling, this is a non-issue.  A good photo showing the actual item overcomes all of the issues that used to be present when mail order in my niche was conducted from black and white magazine ads. 

It also works for Zappos because they have the cost of this service/benefit priced into their goods.  Since they're THE seller, and there are no other parties selling on their site, they can get away with the higher prices.  And they've built a following of loyal customers, who are willing to pay the higher prices because they recognize the value in the returns/shipping policies. 

This ain't Zappos, and I ain't sellin' shoes.

Here, eBay had the original, and biggest, loyal following (in online selling).  They've squandered a lot of that already, and alienate more of them all the time.   A lot of the people they're trying to cater to now are part of Amazon's loyal following, and they aren't going to capture much of that unless Amazon does something to alienate them. 

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And when Zappos runs sales, the vendor/manufacturer usually has to accept the lowest price possible from them. Then, when the event is over, you better have the stock that you told them you had before the event for what they sold or you get whacked 10.00/pair for what you can't fulfill. So if you had your own website, you have a choice of selling a pair for retail price and taking the 10.00 hit, or hurt yourself by cancelling the full-price sale.

The only plus is that they eat them if the customer returns them. They do not go back to the vendor/manufacturer(unlike Nordstrom.com).

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Well Zappos  went into chapter 11 after a  6+ million  dollar loss  to  Retail buyer fraud do to their Liberal return policy   and  Amazon bought them . Nordstorms lost  1 Billion + Dollars  lost to retail buyer fraud ! Do their Liberal return policy's. 

[carlmarxx]

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Rather than focusing on meaningless generational clumps, consider that ebay's reputation as a flea market makes it not even a viable shopping option to solid middle-class buyers of any age. Throw in a search engine that comes with a learning curve and investment of time to even find items, a burdensome return system that involves individual sellers' processes and proclivities, the mbg that might or may not cover a buyer, etc., the venue can be perceived as quite unattractive.

Solid middle-class does not include most people who identify as being middle-class.  Most of us ebayers are squarely among the working-poor.

Market to your demographic - people who need stuff at low prices.  Look how successful dollar stores are because they are not ashamed of who they are.  They unabashedly proclaim:  Get stuff you need for a buck or less!

Sellers need to get real about their prices, too...so much junk marked up beyond retail and stuff that is literally garbage from dumpsters, and every seller hoping their item is a diamond in the rough...so it sits and sits and seller's complain about lack of sales.  Well duh!  

Its a shame that sellers who need money from ebay sales for living expenses can no longer make it on ebay, but they need to adjust their expectations and stop think g ebay owes them something.

I think Pierre Omidyar would be ashamed of what ebay has become.. greedy ...and the rah rah ebay king with the red and gold robes, scepter, and crown schtick is so 1999...

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How do you know  all the sellers got their stuff from a Trash Can !  You got a lot of gull to say that .

[magicjohnsonsvariety]

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I'm sort of wondering what is new and remaining to be said about Generation Z that hasn't been hashed over already, but we'll see.

Let's see... my crystal ball is saying "Free Shipping, Free Returns, and Fast Shipping"?

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I offer none of these things and my sales are up this year...

That stuff above is usually unnecessary. Good products and friendly service is all you really need.

Giving customers too much will ultimately leave them unsatifified in the long run as they will always want and expect more and more. 

[carlmarxx]

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I'm sort of wondering what is new and remaining to be said about Generation Z that hasn't been hashed over already, but we'll see.

Let's see... my crystal ball is saying "Free Shipping, Free Returns, and Fast Shipping"?

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I offer none of these things and my sales are up this year...

That stuff above is usually unnecessary. Good products and friendly service is all you really need.

Giving customers too much will ultimately leave them unsatifified in the long run as they will always want and expect more and more. 

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Gen.Z   aren't going  to be my buyers, I should say not all . Time will tell  if i get any .