Tag: mcommerce

Retail m-commerce is not reaching its potential

| December 8, 2016

An Adobe report has indicated that mobile shopping could be a great deal more but retailers are holding back.

While retail m-commerce has been moving forward, according to Adobe, it could be doing a great deal better. The firm’s data from Europe showed that traffic to retailer sites isn’t reaching its potential.

Europe saw an increase of 54 percent year over year in its mobile retail traffic from smartphones.

Adobe published its European retail m-commerce data in its 2016 Mobile Retail Report. Beyond traffic, smartphone based shopping has also led to an 89 percent increase in its revenue growth since last year. This is far greater than the increase in revenue growth experienced via desktop – at 8 percent – and tablets – at 10 percent.

retail m-commerce - shopping on tabletStill, as much as the growth in revenues is significant, mobile commerce conversions aren’t nearly great enough to balance the slipping growth rates in the use of tablets and desktops. Europe saw a consistent increase in smartphone traffic throughout Europe. However, the average retailer experienced very little overall online traffic growth.

The boost in retail m-commerce isn’t actually driving up the use of online shopping overall.

On average, European retailers saw a year over year traffic increase of only 3 percent when taking all channels into account. Tablet traffic slid by 8 percent and desktop traffic fell by 7 percent. The smartphone growth rate was by far the highest but it was not adequate to make up for what was lost over other devices.

That said, the online retail revenue growth rate was healthy at 13 percent over last year. This was primarily built on the foundation of desktop purchases, which continue to represent the vast majority of online purchases.

Desktops brought in 74 percent of total online revenue, despite the fact that they represent a notably lower 58 percent of traffic. Clearly, the conversion rate over desktop is significantly higher than over other devices.

Smartphone retail m-commerce represented 12 percent of total online revenue but 27 percent of the traffic to retail sites across Europe. The average order value over desktop was also far greater than over smartphones. In that area, desktop outperformed smartphones by a sizeable 25 percent.

In store mobile payments were few on Black Friday

| December 6, 2016

Cayan data revealed that Americans didn’t turn to their smartphones to complete transactions very much.

Transaction processing firm Cayan showed that in store mobile payments in the United States were low on Black Friday. Fortune Magazine reported on the data and indicated that even though mobile wallet use is rising, it is still tiny. That payment method represents only a very small percentage of the overall total.

In fact, the mobile wallet use in store on Black Friday made up only 0.6 percent of sales.

The Cayan in store mobile payments data suggests a 100 percent year over year usage increase. However, it still shows that the percentage it represents of the total is only just a fragment above being entirely insignificant. The only reason that percentage meant anything at all was because the total sales on all payment methods on Black Friday was such a large figure.

In Store Mobile PaymentsDespite that fact, this makes it very clear that mobile payment adoption remains an exceptionally slow process. It is far from being mainstream as of yet.

Other data has shown that some in store mobile payment methods are more successful than other.

PYMNTS and InfoScout data showed that the use of the Apple Pay mobile wallet is actually declining in popularity. Their data revealed that over the last year, the growth rate for usage has slowed down.

Data from October 2016 showed that only 23 percent of consumers with an appropriate iPhone had actually tried the mobile wallet. That was essentially the same statistic that was recorded back in March 2016.

Moreover, mobile wallet use while in-store has not been doing much better. It has not been keeping up with the rate of growth of m-commerce as a whole. Still, even though there is a low conversion rate, PayPal recorded some strong figures over the holiday weekend that launched the shopping season. About 1 in 3 online purchases using PayPal were made over mobile.

Similarly, Adobe recorded that 45 percent of traffic to retail sites came from smartphones and 25 percent of e-commerce sales were from mobile devices. This suggests that customers are using their smartphones, they simply aren’t using in store mobile payments quite yet.