Tag: emarketer mobile commerce

This year is helping to prove that smartphone shopping is growing quickly, but is still a fraction of the whole.

A new industry forecast has been released by eMarketer with regards to retail mobile commerce and its predictions that this channel for shopping will grow in size by 37.2 percent, to reach $57.8 billion, when compared to having been $42.1 billion last year.

The projections also showed that they expect mcommerce to reach $132.7 billion by the close of 2018.

In 2014, mobile commerce in the United States will make up about one fifth of all retail online shopping in the country. However, at the same time it will make up only 1.2 percent of the total retail sales. Therefore, while the report from eMarketer does show that while this channel is having a growing impact on the sales that are occurring on the internet, when it comes to the actual sales made as a whole, it still represents only a tiny sliver.

Included in this mobile commerce estimate are products and services ordered online on a smartphone or tablet.

That said, it does not include the purchase of travel reservations or event tickets in these statistics. In 2014, the report predicts that tablet commerce will make up nearly two out of every three mobile based sales. This is also expected to rise to account for 75 percent of the sales over these devices by 2018. This aligns with the predictions that have been made by previous studies from a range of different sources, which indicated that tablets are the preferred shopping device of mobile consumers when it comes to actually making a purchase.

The mobile commerce research has predicted that sales online (over mobile or PC) will increase by 15.5 percent, this year, to bring them to $304.1 billion. This is an increase over last year’s $263.3 billion. Growth in sales online will make up more than 20 percent of the total retail sales increases in 2014, said the repot. However, at the same time, it also indicated that it will make up only 5.8 percent of the American retail sales total of $4.7 trillion for this year. That figure should grow by nearly 9 percent by 2018.

The example of Sephora has been used to support this claim about the channel.

Experts in mobile commerce and marketing have been looking at some of the larger players in the channel and have stated that they expect a positive future for shopping over smartphones.

Those in the industry are increasingly convinced that this environment has become vital to a company’s survival.

Johnna Marcus, an executive from Sephora, the beauty product retailer, explained that mobile commerce had been a highly positive experience for that company, and that it anticipates further gains in that sphere will present themselves in 2013. Based on last year’s numbers, that business is justified in feeling positive about the potential from smartphone shoppers.

When speaking at a conference, the executive revealed considerable mobile commerce growth data.

According to Marcus, Sephora saw an increase in orders over mobile commerce of 167 percent. Moreover, there was a spike of 75 percent in the traffic that the site saw from smartphones and tablets. Furthermore, over 50 percent of the emails that are sent by the company are opened using these devices, as opposed to laptops and desktop computers.

Sephora has developed a unique mobile commerce strategy which is attempting to make the smartphone or tablet into a type of digital personal shopper for consumers. The devices will allow them to keep track of the brands that they prefer, read reviews, and keep an eye on the very latest items.

The company has also placed a considerable amount of focus on the concept of a mobile wallet which will integrate with the gift cards that they sell. Beyond that, there is a handy feature in the company’s app, which allows consumers to scan the barcodes on the packages in-store, or on the items that have already been purchased. This provides immediate access to product information, reviews, and options for purchasing that item online.

Of course, this was only one example of mobile commerce successes over the last year. A recent eMarketer study has indicated that this year, consumers will be using their devices to purchase $37.44 billion worth of retail products. This is a massive increase over last year, when $23.72 billion was spent.