Tag: mcommerce

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.

Report highlights the recent successes of the mobile shopping space and e-commerce

Internet Retailer has released a new report concerning mobile and e-commerce throughout the world. The global e-commerce market is growing at a rapid pace as smartphone adoption accelerates. More people are using their mobile devices in their daily lives and this is putting more focus on mobile shopping. Using a smartphone to shop online or at a physical store is becoming easier and new mobile commerce services are proving to be rewarding for consumers that use them.

21% of all e-commerce sales come from mobile devices

The report from Internet Retailer shows that mobile now accounts for 21% of all e-commerce sales. The report expects that mobile commerce will generate some $84 billion globally by the end of this year. Conventional online shopping from a desktop computer still accounts for the majority of e-commerce activity, but this is beginning to change as more consumers show favor for shopping from their mobile devices.

Mobile websites are favored over applications by mobile shoppers

The report anticipates that 42% of mobile sales will come from applications while 58% will come from mobile websites. Apps are often seen as useful mobile commerce tools, but websites designed to cater to a mobile audience have a greater impact in the e-commerce space. The quality of these sites can determine whether or not a purchase is finalized and can influence a consumer’s interest in mobile shopping. A poorly designed website could drive people away from mobile commerce relatively easily.

Security is becoming less of a problematic issue for the mobile world

Mobile commerce has been finding more success recently as certain security concerns have been laid to rest. When it comes to shopping online, consumers often worry about the security of their financial information. Many mobile commerce platforms of the past few years have lacked sufficient security measures that could protect this information and retailers found it difficult to keep this information secure as well. As the sector continues to mature, retailers are finding better security solutions, ensuring that consumer information is kept safe.