Author: Denny

New report shows that online retail sales are growing due to mobile shopping

Mobile commerce is powering growth in online retail sales in the United Kingdom, according to a new report from IMRG and Capgemini. The report shows that online retailers are beginning to see a surge in mobile traffic and sales. Consumers are using their smartphones and tablets to do their shopping more regularly, which has lead to an increase in mobile commerce and has opened new opportunities for retailers to engage mobile consumers.

40% of online retail sales are coming from mobile devices

According to the report from IMRG and Capgemini, some 40% of online retail sales are being made through mobile devices, up from 37% that was reported in the previous quarter. Mobile spending is growing quickly, as more online retailers take steps to accommodate the needs of mobile consumers. The report notes that 25% of mobile commerce sales are completed through smartphones, while 75% of these sales are made through tablets.

Tablets are favored among mobile shoppers because they offer a more enjoyable shopping experience than smartphones

Tablet devices appear to be favored among mobile shoppers. This could have to do with the larger screens of tablets. A large screen allows for more control and is more aligned with the design features of mobile retail sites. This provides a more enjoyable shopping experience for consumers, many of whom have shown favor for mobile commerce because of its convenient nature. Retailers are taking steps to be more accommodating to smartphone users, some of whom have suggested that the shopping experience on some mobile sites is subpar.

Demand for in-store mobile commerce support is growing among consumers

While online sales are growing quickly because of mobile commerce, in-store mobile sales are lagging behind. Relatively few retailers support mobile payments at their physical locations, but this could change in the coming years. New services are making it possible for retailers to accept these payments in their stores, and demand for such support is growing quickly among consumers that are interested in mobile commerce.

Within the highly competitive mobile apps market, it appears that gaming is coming out on top, at the moment.

According to the results of a study that were only just recently released, the revenues being generated from downloads of mobile games in the United States, as well as those brought in from in-game app purchases is expected to reach a growth rate of 16.5 percent, this year, over last year’s figure.

This would bring those revenues up to a projected total of $3.04 billion from U.S. downloads and in-app purchases alone.

The firm behind this projection is eMarketer, which found that while mobile games will lead the way, there will also be a notable revenue generated from ebooks, video, and music, which will be increasing at a rate of 4.4 percent, 13.8 percent, and 5.4 percent, respectively.

The report provided a considerable amount of insight in this market and suggested two primary reasons that mobile game apps are stepping up ahead of other forms of revenue. The first was from subscription services (for example, Spotify), that is slashing into individual media purchases, as well as the increase of “freemium” games (for instance, Clash of Clans, from Supercell), which can be played for free but where in-app upgrades can be purchased.

Purchases made within mobile games – such as virtual coins – are predicted to make up almost 60 percent of revenue growth.

These in app purchases, will make up 60 percent of mobile game revenue growth, and is predicted to bring in $1.82 billion, this year. As a whole, the download revenue for these smartphone and tablet apps is predicted to increase by 10.3 percent in order to come to $9.82 billion by the close of this year, said the research. Of that, games are predicted to make in a rising share of those earnings.

Last year, they comprised 29.3 percent of the earnings, but that should come up to 30.9 percent, this year. Two years ago, mobile games brought in 26.4 percent of the app download revenues. On the other hand, ebook downloads are going to bring in the most amount of money, at $4.25 billion in the United States. Video will earn $850 million and $550 million will be earned by music downloads.