Since the onset of the Internet shopping format, e‐commerce sales have soared, and Generation Y consumers, the first generation to grow up with the Internet, have turned into young adults. As part of Generation Y, college students represent a lucrative market for businesses selling a wide array of goods and services, and they are extremely computer savvy. The purpose of this study was to empirically analyze online buying behavior among college students. Based on an economic framework, factors affecting the online purchase of nine different merchandise categories were examined. Data were analyzed from 4,688 students enrolled in a major Midwestern university. Logistic analysis revealed that variations in the effect of age, gender, income, car ownership, ability to identify a secure Internet site, and compulsive buying behavior existed between the merchandise categories. This study has implications for educators, marketers, and policy makers.