40% of gen z discovery happens on social feeds: Report

Two new studies analysing India’s digital retail landscape show that Gen Z’s evolving shopping behaviour and rising cart abandonment rates are redefining online commerce in 2025. With 377 million Gen Z consumers and 72% mobile-first shopping searches, online buying is expanding, but friction points are growing too. The cart abandonment report notes that although over 80% of purchases happen on mobile, mobile also accounts for 76%-85% of abandonments, highlighting a major performance gap.

The Gen Z study titled ‘Gen Z and the New Frontier of Online Shopping in India’ indicates that young consumers increasingly rely on social commerce for discovery while trusting traditional e-commerce platforms for transactions. Gen Z engages with 5+ platforms during a single shopping journey, with 40% of discovery happening on social feeds. However, traditional platforms lead in search behaviour, with terms like ‘Flipkart app’ and ‘open Amazon’ dominating.

The cart abandonment analysis titled 'Understanding Cart Abandonment in Indian E-Commerce' finds that Indian shoppers frequently drop out at checkout due to cost and trust issues. 57% abandon carts because of unexpected costs, while 55% drop off due to complicated checkout processes, including forced registrations. Delivery reliability contributes to the trend as well, with ‘slow delivery’ driving 24% of cart abandonment and 40% of social discussions pointing to last-mile logistics concerns.

Both studies highlight trust as a decisive factor. Gen Z buyers favour traditional e-commerce for secure payments and reliable delivery, while the cart abandonment report cites concerns around counterfeit products, payment safety and unclear return policies as major psychological barriers.

Speed also plays a critical role across segments. The Gen Z study shows that 50% of Gen Z conversations revolve around instant gratification, with quick-commerce platforms shaping expectations. The cart abandonment report adds that quick-delivery services have recalibrated consumer expectations, making standard delivery timelines a trigger for drop-offs.

Urban and rural patterns differ sharply. Urban consumers abandon carts due to unmet speed expectations, while only 50% of Tier-2/3 shoppers say they feel comfortable shopping online due to trust and payment barriers.

Collectively, the findings show that India’s digital retail ecosystem is converging into a fluid model where social commerce enables discovery, traditional e-commerce ensures fulfillment and mobile interfaces carry the majority of transactions, while also posing the largest friction. The studies conclude that transparency in pricing, simplified mobile checkout, stronger logistics and data-driven insights will be central to reducing abandonment and retaining India’s growing base of digital-native shoppers.