Exploring the Impact of Digital Literacy on Gen Z’S E-Commerce Adoption in Tamilnadu

Abstract

This research looks at how digital literacy influences e-commerce adoption among Generation Z in Tamilnadu, where rapid digital growth is reshaping consumer habits. Focusing on key aspects of digital literacy - such as information handling, technical skills, communication abilities, and online security awareness - the research explores how these competencies affect Gen Z’s trust, confidence, and willingness to shop online. Utilizing information from structured surveys distributed across urban, semi-urban, and rural areas, the study analyses how digital literacy relates to online buying frequency, platform preferences, payment choices, and perceived risks. Results show that higher digital literacy significantly encourages e-commerce use, as digitally skilled youth are more capable of navigating platforms, judging product reliability, and using secure payment methods. Awareness of online security also strongly influences trust, which has a significant part in purchase decisions. However, rural respondents still face challenges due to lower exposure and infrastructural limitations. The study concludes that improving digital literacy and promoting safe online behaviour can substantially enhance Gen Z’s participation in e-commerce, and it recommends targeted efforts by educators, policymakers, and businesses to reduce digital skill gaps and support an inclusive digital economy.

Introduction

The rapid growth of India’s digital economy, driven by widespread internet access and affordable smartphones, has significantly expanded e-commerce, particularly in Tamil Nadu, where a large youth population is quickly adopting digital lifestyles. Among them, Generation Z (born 1997–2012) represents a key consumer group whose online behaviors are shaping the future of digital commerce. Although Gen Z is often considered technologically adept, access to technology does not necessarily ensure strong digital literacy, which includes skills such as evaluating online information, ensuring data security, avoiding scams, and critically engaging with digital platforms.

This study examines how digital literacy influences e-commerce adoption among Gen Z in Tamil Nadu. It highlights a research gap, as most prior studies assume uniform digital competence among Gen Z and fail to explore regional differences (urban, semi-urban, and rural areas) or specific digital literacy components like security awareness, trust, and risk perception. The study aims to assess digital literacy levels, analyze perceived risks and trust in e-commerce platforms, evaluate adoption patterns, and compare these factors across different regions of Tamil Nadu. It also seeks to provide recommendations for policymakers, educators, and businesses to improve digital literacy and encourage safe online shopping.

The research scope is limited to Gen Z individuals aged 18–25 in Tamil Nadu and acknowledges limitations such as reliance on self-reported data and the rapidly evolving digital environment. A review of existing literature emphasizes the importance of customer trust, online service quality, and digital marketing in influencing Gen Z’s e-commerce behavior.

The study also outlines the advantages of e-commerce, including convenience, cost savings, personalization, global reach, and time efficiency, alongside its limitations, such as security concerns, lack of personal interaction, technical issues, delivery delays, and environmental impact. Overall, the research underscores the critical role of digital literacy in fostering trust, reducing perceived risk, and enabling sustainable e-commerce adoption among Generation Z in Tamil Nadu.

Conclusion

E-commerce has transformed the retail landscape, offering unprecedented opportunities for businesses to reach a global audience and for customers to shop from the comfort of their own homes. However, as we\'ve discussed, e-commerce is not without its limitations. From security concerns and technical issues to environmental impact and logistical challenges, there are several hurdles that businesses and customers must navigate. Despite these limitations, e-commerce is here to stay, and it\'s up to us to make the most of it. By prioritizing customer experience, security, and sustainability, businesses can build trust and loyalty with their customers. By being aware of the limitations and taking steps to protect themselves, customers can enjoy a seamless and secure online shopping experience. As technology continues to evolve, we can expect e-commerce to become even more sophisticated, with advancements in areas like artificial intelligence, augmented reality, and blockchain. These innovations will likely address some of the current limitations, but they will also bring new challenges and opportunities. Ultimately, the future of e-commerce will depend on the ability of businesses and customers to adapt and innovate together. By working together, we can create a more efficient, secure, and sustainable online shopping experience that benefits everyone involved.

References

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Copyright

Copyright © 2025 Dr. S. Kalaiselvi, R. Abinaya. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.