TL;DR: Millennials and Gen Z now drive the majority of holiday eCommerce growth, but they shop differently. Millennials still prefer email and search engines, spend more per order, and favor BNPL for large purchases. Gen Z starts their shopping journey on TikTok, trusts AI product recommendations over search, and values sustainability. To capture both markets in 2026, online sellers need social commerce integration, flexible payment options like BNPL, AI-powered personalization, mobile-first experiences, and fast multichannel customer support. This guide breaks down five data-backed strategies to help you reach both generations this holiday season.
We talk to online sellers daily at eDesk. And every holiday season, the same question comes up: “How do we reach younger shoppers?”
The answer keeps changing. What worked in 2023 does not work in 2026. Millennials and Gen Z look similar on the surface, but their shopping habits, platform preferences, and spending triggers are worlds apart. And the gap is widening.
This guide gives you five updated strategies rooted in 2025-2026 data. We will walk you through the real numbers, the platforms worth your time, and the customer experience changes you need to make before the holiday rush starts.
What Is the Holiday Buying Power of Millennials and Gen Z in 2026?
The numbers paint a clear picture. These two generations are increasing holiday spending while older demographics hold steady or pull back.
Recent data shows shoppers aged 18 to 34 increased holiday spending by 19%. More than double the rate of shoppers aged 55 and older, who grew spending by only 7%.
But spending patterns differ between these groups.
A 2025 holiday outlook survey found millennials kept their holiday budgets nearly flat year over year, down only 1%. They are in their peak earning years and balancing high fixed costs with steady discretionary income. Gen Z, on the other hand, slashed their planned holiday budgets by 23%, a sharp reversal from 2024 when they planned to increase spending by 37%.
Still, Gen Z planned to spend an average of $1,357 during the 2025 holiday season. And their spending power is expected to grow to $9 trillion globally by 2034. For sellers, the runway here is long.
The takeaway: millennials are your higher-value customers right now. Gen Z is your growth market for the next decade. Your holiday strategy needs both.
How Do Millennial and Gen Z Shopping Habits Differ?
Before you plan campaigns, you need to understand how these two groups find, evaluate, and buy products. The differences are significant.
Where They Find Products
Millennials still lean on search engines. A 2025 survey of 1,000 consumers found 40% of millennials prefer search engines for product research, with 26% now turning to AI platforms.
Gen Z is different. 33% of Gen Z shoppers prefer AI platforms for product research, nearly matching the 37% who still use search engines. And 76% of Gen Z use social media to find products, with TikTok attracting 40% of younger shoppers compared to only 4% of Baby Boomers.
How They Pay
BNPL (Buy Now, Pay Later) is now mainstream for both groups. A 2025 BNPL satisfaction study found nearly half (42%) of Gen Z and millennial consumers used BNPL services, compared to only 21% of older generations. During the 2024 holiday season, more Gen Z consumers chose BNPL over credit cards for the first time in the study’s history.
What They Value
Gen Z directs 39% of their holiday budget toward self-gifting. Millennials focus on others, allocating 62% of their spend to family gifts.
Gen Z also leans heavily into sustainability. 63% of Gen Z plan to shop for vintage or upcycled products, and 34% say sustainability or wellness is a top factor in their holiday purchases.
Millennials prioritize quality, durability, and financial value. They are more likely to trade down by adjusting quantity and pack sizes rather than switching brands entirely.
5 Strategies to Sell to Millennials and Gen Z This Holiday Season
1. Build Social Commerce Into Your Sales Funnel
Social commerce is no longer optional. In 2024, 46% of shoppers aged 18 to 34 completed at least a quarter of their holiday purchases through social media platforms. And the number keeps climbing.
Your eCommerce marketing strategy needs to account for this shift. Here is how to approach each platform:
TikTok (Gen Z priority): This is where Gen Z starts their product search. Short-form video content showing your product in use outperforms polished ads. Partner with micro-influencers who have fewer than 100,000 followers. They drive nearly the same brand discovery as celebrity accounts but with higher trust.
Instagram (cross-generational): Use shoppable posts, Reels, and Stories. Both millennials and Gen Z engage here, making this your best cross-generational play.
Facebook (millennial-focused): Detailed product information, reviews, and community groups still perform well for millennials with higher spending power.
Create best-seller lists tailored to each group. For millennials, think “Top Gifts for New Parents” or “Premium Home Office Upgrades.” For Gen Z, try “Trending Gifts Under $50” or “Sustainable Holiday Picks.” Make every list shareable with native social formats.
2. Offer Buy Now, Pay Later at Checkout
BNPL is no longer a nice-to-have. A 2025 consumer trends survey found 59% of Gen Z and 58% of millennials currently use BNPL services. And advertisers who integrated BNPL saw an average 39% increase in conversions.
For Gen Z, BNPL replaces the credit card. For millennials, BNPL supports larger purchases. In both cases, offering BNPL options like Klarna, Afterpay, or Affirm at checkout removes a friction point causing cart abandonment.
Pair BNPL with your bundle strategy. Create millennial-focused bundles in the $75 to $200 range (“Professional Starter Packs,” “New Parent Essentials”) and Gen Z-focused bundles in the $25 to $75 range (“Sustainable Living Kits,” “Creative Hobby Collections”). When a $150 purchase becomes four $37.50 payments, your conversion rate goes up.
3. Use AI-Powered Personalization for Product Discovery
AI is changing how younger consumers find and evaluate products. A 2025 survey found 61% of Gen Z shoppers used AI tools to help with a purchase in the past year. Another study confirmed 50% of Gen Z and 49% of millennials would hand over all gift-buying to AI to avoid holiday stress.
What this means for sellers:
- Use AI-powered recommendation engines to surface relevant products based on browsing behavior. Personalization in eCommerce is now a baseline expectation, not a bonus
- Send personalized new-product alerts. Millennials prefer email. Gen Z prefers social media and in-app notifications
- Create early access programs for loyalty members. 37% of millennials start holiday shopping before October, so start early
- Optimize your product listings for AI search. 33% of Gen Z now use AI platforms for product research, so your product data, descriptions, and reviews need to be structured for LLMs and answer engines
For your customer experience strategy, AI-powered tools help you deliver faster, more relevant responses during the holiday rush. eDesk’s AI-powered automation handles routine questions so your team focuses on complex issues needing a human touch.
4. Go Mobile-First With Your Holiday Campaigns
Both generations live on their phones, but their behavior patterns differ.
According to a 2025 holiday shopping trends analysis, over 55% of Gen Z’s total holiday spending happens through omnichannel experiences blending online and in-store. Gen Z shoppers are willing to travel more than 10 miles for the right in-store experience, with more than 60% of their omnichannel spending happening far from home.
For online sellers, this means:
- Your mobile experience is your first impression. If product pages load slowly or checkout requires too many steps, you lose the sale
- One-click purchasing and saved payment options reduce friction
- Mobile-specific promotions drive urgency. Timed flash sales on Instagram Stories or TikTok perform well with Gen Z
- Optimize for early-morning shoppers. Over 45% of Gen Z’s Black Friday sales happened between 6 and 9 AM, 30% higher concentration than any other age group
5. Lead With Values-Based Marketing
Both generations care about brand values, but they express this differently.
Gen Z values focus:
- Sustainability: 63% plan to buy vintage or upcycled products
- Authenticity: 55% disapprove of brands using AI-generated models in ads because the practice feels inauthentic
- Price transparency: 82% plan to purchase “dupes” or less expensive alternatives
Millennial values focus:
- Financial responsibility and investment value
- Quality and durability over trendiness
- Family-oriented giving (62% of holiday spend goes to family gifts)
What works for both groups: user-generated content featuring real customers, transparent business practices, and behind-the-scenes content showing your company values in action. Both generations reward brands earning trust through consistency, not flashy one-time campaigns. Focus on strategies to increase customer engagement across every touchpoint.
Highlight eco-friendly packaging and carbon-neutral shipping options. Offer second-hand or refurbished gift options if your product category allows for them. And make charitable partnerships visible during the holiday season.
How Should You Handle Customer Service for Younger Shoppers?
Fast, multichannel customer support is not optional when selling to millennials and Gen Z. These shoppers expect speed and flexibility across every channel.
Millennials prefer email and live chat. Gen Z gravitates toward social media messaging and in-app support. Both expect responses within hours, not days. Investing in the right multichannel customer service tools pays off here. And during the holiday rush, high-volume seasonal support becomes the difference between a loyal customer and a lost sale.
Here is what younger shoppers expect:
- Fast response times across every channel, from Amazon messages to Instagram DMs
- Self-service options so they find answers without waiting. A strong knowledge base reduces ticket volume while keeping customers happy
- Consistent experience across marketplaces. If a customer contacts you on eBay and then follows up on Shopify, your team needs to see the full conversation history
eDesk brings all your customer messages into one unified inbox across Amazon, eBay, Shopify, Walmart, social media, and 200+ integrations. Your team sees the full customer context on every ticket, so they respond faster with better answers. During the holiday peak, speed translates directly into higher satisfaction scores and repeat purchases.
Start your free trial to see how eDesk handles holiday volume without adding headcount.
What Metrics Should You Track for Millennial and Gen Z Sales?
For millennial campaigns, track:
- Average order value and customer lifetime value
- Email engagement rates and conversion
- BNPL adoption rate at checkout
- Customer retention and loyalty program participation
For Gen Z campaigns, track:
- Social media engagement and social commerce conversion rates
- Mobile conversion rates and session duration
- Influencer campaign ROI and reach
- User-generated content volume and sharing rates
Cross-generational metrics:
- Multichannel customer journey completion
- Support ticket resolution time during peak periods
- Customer satisfaction (CSAT) scores across channels
- Holiday season year-over-year growth by demographic
Get Ready for the Holidays with eDesk
Selling to millennials and Gen Z during the holidays requires more than the right marketing strategy. You need the customer service infrastructure to handle the influx. When holiday volume spikes and messages flood in from Amazon, eBay, Shopify, social media, and every other channel, slow response times cost you sales and reviews.
eDesk is the eCommerce helpdesk built for online sellers who sell across multiple channels. Our platform pulls every customer message into one place, gives your team full order and customer context, and uses AI-powered automation to handle routine questions so your agents focus on the interactions requiring a personal touch.
Book a free demo to see how eDesk prepares your support team for the holiday rush.
FAQs
How do I market to Gen Z vs. millennials during the holidays?
Gen Z discovers products on TikTok and AI platforms, prefers BNPL over credit cards, and values sustainability. Millennials prefer email and search engines, spend more per order, and focus on quality and family gifts. Tailor your channels and messaging to each group separately.
What percentage of Gen Z uses social media to shop?
76% of Gen Z uses social media to find products, and 46% of shoppers aged 18 to 34 completed at least a quarter of their holiday purchases through social platforms.
Is Buy Now, Pay Later important for holiday eCommerce sales?
Yes. 59% of Gen Z and 58% of millennials currently use BNPL. During the 2024 holidays, Gen Z chose BNPL over credit cards for the first time. Sellers who offer BNPL see an average 39% increase in conversions.
How do millennials and Gen Z prefer to contact customer support?
Millennials prefer email and live chat. Gen Z prefers social media messaging and in-app support. Both generations expect fast responses. A multichannel helpdesk like eDesk lets sellers manage all these channels from one inbox.
What role does AI play in Gen Z holiday shopping?
61% of Gen Z used AI tools to help with a purchase in 2025. 33% prefer AI platforms over search engines for product research. Sellers should optimize product data for AI discovery and use AI-powered personalization in their marketing.
How early should I start holiday marketing to millennials?
Early. 37% of millennials start holiday shopping before October, the highest rate of any generation. Launch early-bird promotions and loyalty-member early access programs by September.
What is the best platform for reaching Gen Z holiday shoppers?
TikTok is the primary platform for Gen Z product discovery, attracting 40% of younger shoppers. Instagram works well across both generations. Invest in short-form video content and micro-influencer partnerships for maximum reach.
