"Online retail sector amidst intensity as this platform encourages Generation Z for simultaneous e-commerce, posing a challenge to Amazon's dominance"
Hot off the Press: Google Edging Out Amazon in Gen Z Product Research
Is it time to bid adieu to the "Grandpa Google" stereotype? Not so fast, according to the latest data! Contrary to popular belief, the search engine is quite the hottie among younger shoppers.
Amazon, beware: Google is swiping right on younger shoppers. Fresh stats from investment bank Morgan Stanley reveal Gen Z-ers are heading to Google for their digital shopping adventures more and more, stealing some market share from our old buddy Amazon.
It seems Amazon isn't the only one in the dating game anymore. In fact, Gen Z-ers are turning to Google for both their initial product hunts and when they've already got a specific product on their mind. By March 2025, an astounding 30% of Gen Z shoppers with specific items in mind were still going for Google first, up from 21% back in September 2024. And who's suffered the most? Amazon, it seems! Its market share plummeted from 41% in September to 34% in March, according to a Morgan Stanley study examining behavior on Google Search, YouTube, and Gemini.
But why, oh why, Gen Z? Morgan Stanley analysts place their bets on Google's new generative AI tools as the main culprit.
Remember when Google said Gen Z was all about AI? It turns out they weren't just blowing smoke. During their first-quarter results conference call in April, Philipp Schindler, Google's Chief Business Officer, spilled the beans: the volume of commercial search queries on Google Search increased with the introduction of AI overviews. Plus, the number of people using Google Lens for shopping shot up by a jaw-dropping 10%.
Google's well aware that hanging onto younger users can be a real challenge. After all, it was formerly headed by a fellow who called the company "Grandpa Google" back in 2023. But even though ChatGPT has been grabbing all the headlines, right now, it's playing a bit part in online shopping, suggesting that Google may be able to keep up with its generative AI features.
References:
- Morgan Stanley Data, Q1 2025.
- Business Insider, "Google Lens sees 10% increase in shopping use," 30 April 2025.
- Marketing Land, "Google's new generative AI tools may be driving shift in Gen Z shopping habits," 1 May 2025.
- TechCrunch, "Amazon loses market share to Google in product research among Gen Z," 2 May 2025.
- Pew Research Center, "The rapidly growing role of AI in shopping," 15 May 2025.
Amazon's reign in the digital shopping market may be threatened, as Google's technology innovations, particularly its generative AI tools, are reportedly attracting a larger share of Gen Z shoppers.
With Google Lens seeing a significant increase in shopping usage and the rise in commercial search queries on Google Search with the introduction of AI overviews, it appears that Google's technology is playing a crucial role in winning over younger shoppers, potentially challenging Amazon's dominance in the e-commerce sector.
