Tag: ecommerce

According to recent statistics, mcommerce currently makes up 30 percent of online earnings.

The introduction and rapid penetration of smartphones has completely turned the world of online shopping on its head, to the point where mobile commerce is now representing a considerable share of the revenues that are being generated through ecommerce.

In fact, some of the latest data has indicated that mcommerce could represent nearly a third of online shopping revenue.

For example, in 2012, mobile commerce made up 10 percent of the overall revenues generated online by the websites of fashion retailer, Myntra, as well as 5 percent for Snapdeal an online deal provider. In 2013, however, that same channel was generating double the percentage for Myntra, and six times the percentage for Snapdeal, the latter of which was experiencing nearly daily growth in that area.

Travel companies are also benefiting from growing mobile commerce use by consumers.

It has been estimated that 15 percent of online travel company bookings at Yatra.com originated from smartphones. That company is now aiming to try to boost that figure to between 40 and 50 percent of its online revenue share, as rapidly as possible. Justdial, a local search website, has seen a much more considerable success rate, after having seen a growth of its mobile share of revenues by 150 percent.

For a long time the trend was for smartphone and tablet users to browse over their mobile devices and make their purchases in person, not online. Or they would browse over those gadgets and then make an online purchase using a laptop or desktop computer. However, that trend seems to be shifting as a growing number of people start to use their smartphones and tables for a larger number of daily tasks, including shopping and buying.

This trend toward mobile commerce buying has been accelerated by the rising number of retailers and merchants who have been optimizing their websites for smaller screens as well as creating dedicated apps. They have allowed for a greater amount of competition, comparison, and options so that consumers have more choice available to them through this channel.

It’s no secret that more consumers are turning to online shopping for the convenience it offers, but the truth is that online shopping is hardly without hassles. In fact, it can be a nightmare for merchants. While giant online merchants like Amazon and eBay have mastered the process of capturing an online sale, most ecommerce sites continue to limp through the process. Navigating the complex world of payments, including leveraging promotions effectively, automating subscription renewal and website optimization, the struggle for small to mid-sized merchants can seem unending. According to the latest research from Baymard Institute, the online shopping cart abandonment rates are as high as 67 percent—a startling percentage given that more consumers like to shop online, with online retail sales expected to grow between 9-12 percent in 2013.

Studies have shown that shopping cart abandonment rates increase when the payment complexities of the global marketplace come into play.  Language barriers, alternate payment types and currency issues all make up the reality of today’s online shopping experience. We took a comedic look at some of these challenges through the eyes of two budding entrepreneurs running their own e-lemonade stand.  Check out the short video clip here.

In the real world, there are many reasons why shoppers abandon their carts; below are three of the top reasons why shoppers close out before making that shiny new toy their own:

Lack of local currency or local payment types– ecommerce can be a great medium for businesses to open their doors online and offer goods and services worldwide. However, many businesses are leaving money on the table by alienating the global audience as they do not have the provisions to accept payments in multiple currencies and payment types. Businesses typically like customers to pay in the currency the business is comfortable accepting, not the currency the customer is interested in paying with. While it is understandable that trying to process payments from around the world in different currencies and payment types can be a logistical nightmare for merchants, it is actually a simple obstacle to address. The easiest way to overcome this is to integrate with a third-party payment platform that handles the complexities of payment on a merchant’s behalf so that the merchant can be more productive in fulfilling and processing orders rather than figuring out payments.

No local language, no thanks! – If customers can understand exactly what they are buying and being charged for, they will be more comfortable paying online. Unfortunately, most online payment platforms do not offer a fully localized checkout experience – including local languages and currencies leading to customer confusion and a high rate of cart abandonment.

No single-click buying – For returning shoppers, filling out personal information each time can be frustrating, especially if customers are using mobile devices. Single-click encourages shoppers to come back and easily purchase again; they don’t need to re-enter their information or even have a credit card handy.  Including a BuyNow button on any page, can go a long way in encouraging repeat buyers. (Think “I-tunes” buying on ecommerce sites.)

There are dozens of reasons why customers leave a website empty handed, but these simple tips, along with insight from this cute video about cart abandonment, can go a long way in increasing actual checkouts and ultimately, a merchant’s bottom line.

By Ralph Dangelmaier, CEO of BlueSnap