The average number of items per transaction in the Consumer Goods category has reached its highest point in the past 12 months, with nearly 11 products per order on average, according to digital marketing platform Dynamic Yield. This surge surpasses even the sales seen during last December’s holiday shopping season. The average value of a digital cart has also hit a 12-month high, rising by $50 from June to $206 per order, as reported by Dynamic Yield.
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While we may not all be on a shopping spree, consumer spending has remained surprisingly strong despite signs of economic stress. The US Commerce Department revealed that July retail spending exceeded economists’ expectations, increasing by 1% following June’s revised 0.2% decline.
Saying goodbye to checkout lines
One factor driving this growth may be the widespread availability of Buy Now, Pay Later (BNPL) services like Klarna and Afterpay, which are becoming more mainstream. Even a lack of immediate cash is no longer a significant barrier to shopping.
“People with high levels of materialism and impulsive buying tendencies are more likely to use BNPL,” said Philippa Ward, a marketing professor at the University of Gloucestershire. She noted that this short-term financing option can amplify impulse shopping habits.
However, economists and consumer advocates have raised concerns about BNPL. Research from the Federal Reserve Bank of New York earlier this year showed that individuals with tighter finances, such as those with credit scores below 620, are more than three times as likely as financially stable individuals to use BNPL multiple times a year.
The influencers and the influenced
Shopping hauls can be highly profitable for influencers and social platforms and can significantly impact consumer behavior. These platforms are making online purchases seamless, turning passive entertainment into a potentially costly habit, which is worrisome for those who can't afford it.
Katie Fang, who has over five million followers on TikTok, garners hundreds of thousands of views for her “get ready with me” videos, where viewers follow along with her makeup routine. Outside of TikTok, her fans can purchase the products she uses through ShopMy, a platform for content creators to promote products. These tools have made hauls more visible, increasing social pressure for others to join in.
Social media platforms are also venturing into retail, evolving from sources of inspiration to places where users can buy products without leaving the site. In the past year, people watched over 30 billion hours of shopping-related content on YouTube, which launched YouTube Shopping in 2023 to let content creators tag products in their videos and earn commissions on sales. TikTok also introduced TikTok Shop in 2023, growing to over 500,000 sellers in the US, including major brands.
Even influencers like Fang aren’t immune to social media's influence. "The beauty industry has exploded on TikTok, and I find myself easily swayed by trending products," she said.
According to TikTok, the platform was responsible for 15% of product discoveries in 2022, aided by hashtags like #TikTokMadeMeBuyIt. Two out of three Americans believe that social media promotes overspending, according to a June survey by WalletHub. Beyond social media, personalized recommendations from retailers also push shoppers to add more items to their carts.
“The most powerful tools online retailers have compared to offline are algorithms, data processing tools, and information about you,” said Matthias Lehner, a researcher at the Centre for Retail Research at Lund University in Sweden.
As companies continue investing in AI technology, algorithms that personalize shopping experiences are becoming more advanced. For example, Amazon introduced an AI-powered feature this year to help customers find the best fit for clothing based on their previous purchases and sizing preferences.
“Store assistants can personalize your experience in physical stores, but it might not be long before AI-powered digital assistants surpass them in recommending and selling products,” Lehner added.
Over (and under) consumption
However, the shopping haul trend faces competition from another online movement: “Underconsumption core,” a countermovement led by “de-influencers” advocating against excessive buying. This movement is gaining traction as a response to the relentless shopping culture.
De-influencing is more than just a hashtag, according to Katrina Caspelich, chief marketing officer at Remake, a nonprofit focused on human rights and climate justice in the fashion industry. The fashion industry is estimated to be responsible for 2 to 4% of global greenhouse gas emissions, according to Remake’s 2024 Fashion Accountability Report. As a result, more people are raising awareness of the dangers of overconsumption.
“It encourages us to use our resources thoughtfully and to maximize the value of the products we already own before succumbing to the temptation of buying the next big thing,” Caspelich said.
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