By Erin Logan, VP Retail Strategy, Merkle and Megan Keane, VP Integrated Strategy, dentsu
With Amazon Haul’s late 2024 launch alongside Temu and SHEIN, fast commerce has officially “arrived.” Our January Dentsu Consumer Navigator study finds that 2 in 5 US consumers shop fast commerce at least monthly, with nearly 20% making purchases weekly.
It’s tempting to assume price and convenience are the only drivers behind the rapid growth of these marketplaces. After all, 57% of consumers turn to fast commerce for lower prices on everyday items. And anyone who has shopped on these platforms can attest that sly, seamless UX features make purchasing feel dangerously easy. However, these are merely ingredients in fast commerce’s true appeal: It’s entertainment first, shopping second.
The TikTok-ification of Shopping
Fast commerce doesn’t just make shopping affordable or easy—it makes it entertaining. Our study found that almost 2 in 5 consumers shop fast commerce just for fun, and for Gen Z, fun is their second biggest driver to shop these platforms.
While shopping has always had an entertainment factor—whether it’s window shopping, retail therapy, or socializing—in many ways, eCommerce made shopping more intent-driven and efficient, prioritizing search over discovery. In contrast, fast commerce thrives on discovery. It replicates another online experience: social media’s dopamine loop.
- Algorithmic discovery. Fast commerce replaces intent-based shopping with algorithmic discovery. Forty-five percent of consumers say they shop these platforms to “discover unique or unexpected items.”
- Encouraging impulse. With low prices and low free shipping thresholds, the barrier to trying something new is nearly nonexistent. Fifty-seven percent of consumers shop fast commerce for price and 45% for the “easy, convenient experience,” while 53% of Gen Z admit half or more of their purchases are impulse buys.
- Gamifying engagement. From countdown timers to referral bonuses to constantly rotating flash sales, these platforms create the sensation of scoring a deal—not just making a purchase. Forty percent of consumers say the excitement of finding a bargain keeps them coming back.
While China’s super-apps have long blurred the lines between social, entertainment, and commerce, this marks a new era of online shopping behavior for US consumers.
Avoiding the Fast Commerce Trap
Retailers know it’s harder than ever to earn brand loyalty. In 2023, US customer loyalty dropped 14%, and 36% now say they are not loyal to any brand (SAP Emarsys, 2023). Typically, companies build loyalty through trust, habit, emotional connection, and customer experience—key pillars identified by Northwestern’s Kellogg School of Management, Harvard Business Review, and McKinsey & Company.
By mimicking the addictive, discovery-driven thrill of our social feeds, fast commerce is raising the bar for habit, emotional connection, and experience. As our research shows, consumers are flocking to them as destinations for fun, excitement, and discovery.
It’s hard to predict the future, but it’s not hard to envision a bifurcation of retail experiences should these platforms succeed. Where once a single retailer like Target may have served both practical and recreational shopping needs, Amazon Haul or Temu will now be top-of-mind when consumers want some entertainment. The result will likely be weakening loyalty to other retailers and brands for that type of experience. After all, Harvard Business Review finds that emotionally connected consumers are more than 2x as valuable as satisfied ones.
It’s tempting for companies to believe that the best response to fast commerce is to copy their playbook. However, there are several problems with this:
- You won’t win their game: Low prices and seamless operations is their entire business. While companies should explore price sensitivity and seek to improve convenience for customer, this should not be the entire approach.
- It might be a trend that cools off: Today, consumer behavior changes rapidly, and the recently proposed tariffs on China may eliminate a key import duty exemption that aided fast commerce operations.
- It trains consumers expect lower prices: Reacting with lower prices risks a race to the bottom, further eroding margins and long-term loyalty.
How Retailers Can Win the Entertainment Economy
Instead, retailers and brands should ask this question: what can we offer that they don’t?
- Find Your Unique Angle, Don’t Copy Theirs: Focus on what Clay Christensen calls the "jobs to be done" theory – why customers truly purchase your products. The McDonald's milkshake study famously revealed customers bought them not as desserts but as commute companions that kept them occupied and full until lunch. Identify your unique customer need that fast commerce can't satisfy.
- Reconceive Loyalty from Purchase to Connection: The best loyalty programs don’t just reward purchases—they create reasons to return, even when consumers aren’t actively buying. Brands should ditch generic discounts and focus instead on experiential perks such as early access, exclusive content, etc. that build affinity and extend engagement beyond checkout. REI's membership program excels here by creating community through classes, events, and content that extend engagement far beyond purchases.
- Harness the In-Store Advantage: Fast commerce can’t replicate physical presence and in-store experiences have appeal again. Our study finds that 73% of consumers say in-person shopping is “an event they look forward to.” Brands should make it worth the trip with immersive displays, interactive experiences, and integrated digital components that extend the experience beyond the visit. Lululemon transforms stores into community hubs with yoga classes and events, while Nike's House of Innovation offers personalization stations and app-integrated experiences that blend digital convenience with physical immersion.
- Add Value, Don’t Detract: Ads shouldn't feel like ads. They should feel like discovery. Business Insider reports that ads embedded into shopping experiences convert higher and cause less fatigue than disruptive placements. Dentsu helps brands like Galderma create content that customers actively seek out. Rather than try to speak to Gen Z through traditional channels, Differin’s “Level Up” campaign integrated skincare education into gaming, activating across Twitch, TikTok, YouTube and IRL at TwitchCon.
At Dentsu, we help brands decode cultural shifts and build engagement-first retail strategies that thrive in an era where attention is the most valuable currency. The future of retail belongs to those who turn shopping into entertainment.