Tag: ecommerce

Mcommerce investment earned back by Crocs in 2 months

The company’s move to create a smartphone specific website has rapidly paid for itself.

According to two execs from Crocs, their recent decision to create a website that was specific for mobile devices such as smartphones and tablets has been a tremendous success, as the mcommerce site was able to earn back the money needed for its creation within a period of only two months.

The channel has clearly shown itself to have tremendous profit potential, when used correctly.

This information was revealed at the “Increasing Mobile Conversion through an Emphasis on Usability and Design” session at eTail West. Also speaking were execs from Skava and the Wyndham Hotel, with Artisan Mobile’s CEO, Bob Moul, acting as moderator. Throughout the discussions regarding the advantages of mcommerce, the global ecommerce mobile product manager from Crocs, Keith Baltus, pointed out that while the conversion rate that is currently generated over smartphones may be quite low at the moment, every little bit goes a long way in terms of elevating the results that are achieved.

The affordability of mcommerce makes it possible for some experimentation.

Baltus admitted that he had felt “pretty conservative” about the forecasts that he was expecting from the mobile commerce website. He felt that there would likely be an incremental revenue increase of about 5 percent per locale per device. That said, he has now seen that they essentially “blew that out of the water”. Within the first two months of having launched the smartphone friendly site, they’d already paid back their investment.Mcommerce - Crocs

Until the new site for mobile shopping was put into place, Crocs had been relying on a desktop site that would render for mobile. However, this latest investment brought a new second website that was dedicated specifically to smartphones and tablets and the effort has caused mcommerce conversion rates to spike. In fact, in some of the company’s Asian markets, there has been an increase of close to 100 percent.

As the discussion continued, Baltus pointed out that conversion over smartphones rose by 50 percent and tablet based conversions received a 10 percent boost. He underlined usability as one of the primary drivers of the improvements that were recorded. Crocs notes that smartphones currently account for 7% of its e-commerce revenue, with tablets accounting for 13% of total e-commerce revenue.

Mobile commerce heating up from the purchases of the minority of consumers

While the stats from smartphone and tablet revenues continue to head upward, most shoppers still don’t m-buy.

The results of a new mobile commerce survey are in, providing a considerable amount of new insight into the habits of consumers that buy products and services over their smaller screen devices such as smartphones and tablets.

While the trend is definitely growing, it still appears to be driven by the minority of shoppers.

Also interesting, according to this Fits.me mobile commerce survey, were that 97 percent of the clothing purchases that were made by consumers were from home or work. Only 1 percent of the respondents said that they purchased the clothing while in-store using the WiFi from that location. The survey involved the participation of 1,027 smartphone or tablet using consumers and investigated their habits and opinions toward online shopping and ecommerce as a whole

It found that mobile commerce accounted for about 30 percent of clothing purchases made online.

Despite that fact, only 15 percent of the participants in this study had used their smartphone or tablet to make their previous online purchase overall. Among all of the respondents, only three had used their data plan to complete tMobile Commerce and Consumershe most recent transaction online.

According to the Fits.me chief exec and co-founder, Heikki Haldre, “This survey gives the transactional statistics published in other reports some much-needed context about the shoppers that are driving those figures.”

This is important as previous recent mcommerce surveys have made it look as though the channel is taking off like a runaway freight train, but it never actually gave any indication as to who the shoppers are and which ones are actually behind those impressive looking figures. As it turns out, it is a smaller crowd than had previously been assumed.

The research also showed that among the respondents, 85 percent had used a desktop or a laptop computer to complete their most recent purchase online. Eleven percent had used a tablet, while online 4 percent had used a smartphone, and a mere 1 percent used one of shop’s in-store kiosks for completing their most recent online order.