Tag: m-commerce

Report highlights the growing prominence of mobile shopping and its effect on digital commerce

A new report released by comScore shows that mobile shopping is on the rise. Shopping from a mobile devices is becoming more popular among consumers, and the sales coming from mobile shopping are boosting e-commerce spending numbers. Mobile commerce is still a small percentage of overall digital sales, representing some 11% of e-commerce. Despite this, however, mobile shopping is beginning to have a major impact on the e-commerce space, transforming the way merchants conduct business online.

Digital spending is on the rise among mobile consumers that enjoy shopping for and purchasing products online

The report from comScore shows that digital commerce has seen a major increase in spending thanks to mobile commerce. Consumers are embracing the idea of shopping for and purchasing products online with their smartphones and tablets. As retailers begin adopting better mobile commerce services and platforms, mobile shopping is expected to continue growing and influencing the overarching digital commerce space.

Mobile commerce saw a 47% increase in spending during the second quarter of this year

The report shows that mobile commerce grew by 47% during the second quarter of this year, significantly overshadowing the growth this sector had seen in previous quarters. By comparison, conventional e-commerce spending grew by 10%, while discretionary retail spending grew by just 3%. The report predicts that such growth is not likely to be sustainable throughout the remainder of the year, but mobile commerce is likely to continue gaining attention among consumers whose lives are tethered to mobile devices.

Mobile commerce adoption is on the rise despite certain challenges that consumers have faces in recent years

Mobile commerce has faced many challenges over the years, especially when it comes to the security of a consumer’s financial information. These challenges have slowed adoption somewhat, but consumers have not been dissuaded from shopping online with a mobile device and making mobile payments. The mobile space is likely to continue having a significant impact on e-commerce as a whole, especially as new mobile payments platforms are made available and people use these platforms more regularly.

Snapdeal is showing rapid growth in its online sales over smartphones and tablets.

The Indian shopping marketplace, Snapdeal, has seen quite the difference over the last year in the percentage of online sales that is being brought in through mobile commerce as opposed to using a personal computer.

This most rapidly growing shopping site in India had seen only 5 percent of its $400 million in sales from mobile shoppers in 2013.

This year, the annual gross merchandise volume broke the $1 billion mark, according to Kunal Bahl, the company’s CEO, and mobile commerce is now accounting for 60 percent of its sales. Clearly, this is a tremendous rise in the share of the sales that are coming from smartphones and tablets in India. That said, this is a trend that is being sought after by online marketplaces around the world, including the giants such as Amazon.

Amazon recently revealed that it would be investing an additional $2 billion into its mobile commerce marketplace in India.

Equally, Flipkart, which is a privately held company, has announced a similar investment of $1 billion. Snapdeal has also been speaking informally with American bankers about the opportunity for an IPO in the future.

This is a clear indication that when it comes to the Indian online shopping marketplace, m-commerce is starting to play a very important role. Moreover, this type of insight suggests that retailers that want to remain competitive will need to make sure that they are providing a strong mobile optimized experience so that consumers can shop over their favorite devices.

There has been some hesitation among certain companies, simply because there is risk involved. This remains a relatively immature market, as much as it has been taking off rather quickly. That said, because the trend is clearly showing that people in India are more than willing to make purchases on their smartphones and tablets, it is becoming increasingly evident that this is a channel that is likely to stick around and only become increasingly important, as opposed to being a passing fad.

Mobile commerce is soon to be a highly competitive and meaningful market and companies that fail to keep up may miss out on a considerable opportunity.