Tag: mobile commerce 2013 holiday season

Mobile spending grows, but retailers miss out on a significant opportunity

The 2013 holiday shopping season has proven to be quite successful for most retailers and brands. A recent report from comScore show that online spending passed $46 billion during the holiday season while another report from the National Retail Federation notes that overall spending reached $601 billion. Mobile spending has grown significantly in 2013, but Jumio, a market research firm, has released a new report that suggests that mobile commerce has missed a major opportunity.

Mobile commerce misses out on $16 billion

According to the report from Jumio, mobile commerce missed out on $16 billion over the 2013 holiday season. Overall, the report shows that mobile spending has grown, but many consumers have reported a lackluster experience with their shopping experience. Mobile shopping platforms from retailers were launched late last year in order to attract the mobile audience, but these platforms were hastily developed and some were crippled by glitches that prevented people from purchasing products.

Abandoned carts may be the culprit behind the loss of revenue

The problem may lie with abandoned shopping carts. Carts are quite common in e-commerce and they serve as a place where products are stored before the checkout process has been finalized. Jumio suggests that consumers running into significant problems on mobile commerce platforms often caused them to abandon their online shopping carts. In many cases, platforms failed to store product information properly, causing consumers to abandon their digital shopping carts and start the process from the beginning.

Poor shopping experience cause consumers to drop mobile commerce

The report shows that some 51% of consumers opted to abandon their digital shopping carts because of security reasons. These people did not believe that a mobile commerce platform would be capable of keeping their financial information safe.  Some 47% abandoned carts because of difficulties regarding mobile payments, while 41% claimed that a mobile commerce platform they were using was simply too difficult to manage. Another 23% of consumers reported that their transactions would not go through during the checkout process, causing them to seek out more convenient forms of shopping.

According to a recent Shopgate report, retail needs to appeal to smartphone using consumers.

Shopgate, a highly recognized m-commerce business solution, has released a report called the “2013 Holiday Guide for Online Retailers”, which provided the top 10 recommendations for success, this holiday season.

Among those points, the focus on catering to smartphone users was a considerable one.

What was explained by Shopgate in its report was that retailers should start acting right away to make their way into m-commerce if they haven’t already prepared their strategy for the upcoming holiday shopping season. It is no longer enough to focus on online shopping in general and as a whole. Instead, a focus also needs to be placed specifically on the mobile channel.

In fact, when it came to getting into m-commerce, the recommendation was “do it now!”

The report from Shopgate pointed out that m-commerce traffic is not only already representing more than 20 percent of all American internet traffic, but it is also expected to exceed desktop based internet traffic by the end of next year. The holiday season is predicted to be the transitional time into that exceptional rate of growth to the point that it will be greater on smartphones and tablets than it is on laptops.

The report pointed to a number of m-commerce findings from several recent studies.

For example, it pointed out that shopping over m-commerce is expected to reach $42 billion by the end of this year, and that it will make up a larger segment of e-commerce than has ever been experienced before, according to eMarketer.

In fact, the report went to the extent of saying that retailers that choose not to take part in m-commerce may be actively choosing not to take advantage of an important source of revenue. It pointed to data from Econsultancy, which indicated that 62 percent of businesses that have created a website that is specifically optimized for smartphones and tablets, had increased their sales. The recommendation for the upcoming holiday season was to use mobile friendly elements such as: coupons, push notifications, ad scanners, daily deals, QR codes, mobile SEO, and product categories.