As Gen Z rewrites the rules of fashion ecommerce, operators must navigate a maze of platforms, preferences, and pressure.
New data from Podean shows online apparel is booming, but winning requires more than low prices and fast shipping.
Ecommerce apparel is now a $217B beast
The US now accounts for nearly 20% of all global online apparel spend, with ecommerce sales expected to hit $217 billion in 2025. That’s nearly $1 out of every $5 spent on fashion worldwide.
But despite the scale, online still only accounts for 38.1% of all US apparel sales. Translation: there’s still plenty of land left to grab.
Gen Z is reshaping how and where we sell
Weekly apparel shopping online is now the norm for nearly 30% of Americans. For Gen Z, that number jumps to 59%, with 25% of Gen Z women buying clothing online daily. These shoppers aren’t just addicted to Shein hauls—they’re driving structural changes:
- ✨ Product quality is king (yes, even above price)
- 📊 Social media is now a top discovery channel, especially TikTok and Instagram
- ⭐ Reviews and user content matter more than your slick ad copy
- 🌐 Values-driven brand alignment matters more to them than older generations
Amazon is still the king but not the only arena
Amazon took in $62 billion in US apparel sales in 2024 alone. It remains the top apparel marketplace, with 69% of apparel sales coming from 3P sellers. But it’s not the only game in town:
- Walmart is exploding with Gen Z, especially value-focused shoppers
- Temu and Shein combined pulled $13B in 2024 US apparel sales
- 60% of shoppers buy from 2 to 4 marketplaces; 18% shop from 5 or more
Winning requires a multi-channel strategy. Betting everything on your DTC site or a single marketplace is leaving sales on the table.
Where US consumers buy apparel online
| Platform | % of US Shoppers | Notable Demographic Trend |
|---|---|---|
| Amazon | 72% | Dominates all age groups |
| Walmart | 78% (Gen Z) | Huge with Gen Z |
| Temu + Shein | $13B in 2024 | Explosive among women 18–24 |
| DTC brand sites | Significant | Brand-loyalists prefer |
| Social media | Rising fast | TikTok & Instagram drive Gen Z |
Returns are eating your margin alive
Apparel return rates are brutal: 24.4% of online purchases go back, costing the industry up to $22 billion annually. For many top brands, that’s $800K to $1.1M lost per year.
Top reasons?
- Size and fit issues (38%)
- Misleading photos or descriptions
- Shoppers second-guessing their buys
Operators: Fix your images, get real with sizing, and invest in review volume and UGC. It’s not optional.
Top factors influencing apparel purchases
| Factor | % of US Consumers |
|---|---|
| Product images | 72% |
| Size charts and fit guides | 67% |
| Detailed descriptions | 64% |
| Customer reviews | 62% |
| Shipping & return policy | 45% |
Social commerce and AI aren’t “next”…they’re here
Social commerce is projected to top $100B by 2025 in the US. Gen Z is already there:
- 72% say they’re buying more on social than a year ago
- 52% say live shopping influences what they buy
Meanwhile, AI is rewriting the buyer journey:
- Personalized discovery based on browsing habits
- Visual search and auto-outfit generation
- AI-powered sizing and AR try-ons
If your tech stack still looks like it did in 2019, you’re behind.
Generational brand discovery habits
| Channel | All Shoppers | Gen Z |
|---|---|---|
| Online marketplaces | 64% | 55% |
| Social media | 39% | 62.5% |
| Web searches | 38% | 45%* |
| Friends/family | 36% | 34%* |
| Influencers | 13% | Higher than avg |
What it means for operators
This isn’t about “pivoting to digital” anymore. The new battlefield is:
- Platform diversification (Amazon, Walmart, Temu, Shein, DTC)
- Tech-led merchandising (AI, AR, visual UGC)
- Gen Z fluency (value + values)
- Return reduction through real content and honest sizing
This is not the time to play defense. With $217B in ecommerce spend on the table, the brands that get scrappy, get social, and get smarter with tech will win the next era of fashion ecommerce.
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