Tag: m-commerce

Retail industry begins devoting more resources to mobile commerce

The retail industry is beginning to respond to the gargantuan success of the mobile commerce sector, especially in the wake of the results of the 2012 holiday shopping season. During the 2012 holidays, more consumers made use of their mobile devices to shop for and purchase products than they ever had before, giving the retail industry a glimpse of the gains they could see by throwing more support behind mobile commerce. Shop.org and Forrester Research have released a new survey that highlights the view retailers have regarding mobile commerce in 2013.

State of Retailing survey highlights the work of retailers

The survey, called “State of Retailing,” shows that more retailers are beginning to shift their resources to better serve mobile consumers. More than 51% of the retailers surveyed noted that one of their top priorities was making sure that their websites and services were optimized to be used on mobile platforms, such as smart phones and tablets. Another 43% identified tablets and other mobile devices as one of their most important priorities, hoping to increase the traffic and commerce they see through these platforms throughout 2013.

Online traffic spikes in 2012

Retailers are reporting that they are seeing more traffic from online sources. This traffic grew in 2012 and is expected to continue gaining momentum well into 2013. Approximately 27% of the retailers surveyed noted that they have major overhauls of their websites planned in the coming year. These retailers are focusing on making their websites more accommodating for mobile consumers.

Retailers must be wary of pitfalls surrounding mobile commerce

While there are certainly major opportunities for retailers in the realm of mobile commerce, it is important for these companies to take time to identify the potential obstacles they may face in catering to mobile consumers. Embracing mobile commerce is a multi-faceted endeavor, and many retailers will likely begin feeling pressure to facilitate actual payments from mobile devices in their physical stores. Moreover, the more companies focus on mobile commerce, especially in the digital space, the less traffic their physical stores may see in the future.

Apple devices are maintaining their integral role in the sales from the company’s digital goods store.

A new report has just been released by Horace Dediu, an analyst at Asymco, which has illustrated the importance of the role that Apple devices continue to play in the profitability of the iTunes mcommerce digital products store.

The report indicated that iPhone, iPod, and iPad users are still heavy buyers of digital products.

In fact, the statistics that were outlined in the report showed that iOS apps are currently driving one third of the revenue that is being enjoyed by iTunes, and this isn’t showing any indication of changing, for the moment. The research that the analyst performed also indicated a number of other fascinating mcommerce trends.

The iTunes mcommerce experience has continued to thrive as iOS device shoppers head back for more

Among the other findings of the report include the following:

• The gross revenues that have been achieved by the iTunes marketplace have reached an estimated $12 billion per year.
• Over a period of the last five years, owners of both media and apps have generated a total of approximately $24 billion.
• For the aforementioned $24 billion in sales, Apple spent around $10 billion in order to generate them.
• When taken into consideration as a retail business, it costs approximately $3.5 billion per year to operate the iTunes store. This amount includes the costs associated with merchandising, payment processing, as well as any “shipping & handling” expenses.
• Over the last four years, the total revenues at iTunes have experienced a steady rise, at an estimated compounded 32 to 38 percent.
• Although media other than apps still represents around two thirds of iTunes in terms of the annual sales value, the growth rate that this area is experiencing is at 28 percent, while the growth rate for apps is currently at 50 percent.

This annual mcommerce data provides a clearer understanding of the current state of iTunes and helps to suggest some of the directions that it may choose to take as 2013 continues to progress forward.