Tag: mcommerce

Mobile commerce traffic makes up one quarter of online shopping

A newly released report has revealed that 25 percent of e-shoppers are using smartphones and tablets.

A report that has recently been issued by Monetate has shown that approximately one quarter of all of the global online shopping comes from mobile commerce traffic through smartphones, tablets, and other devices.

This represents a meaningful increase in the sector’s share, even within the last quarter, alone.

Monetate’s data showed that mobile commerce traffic increased by about 3 percent within the last quarter. Of that mobile device based shopping, tablets represent approximately two thirds. This means that tablet users are currently responsible for about 15 percent of all of the ecommerce activity that is going on at the moment.

The larger screen devices have been representing a larger proportion of mobile commerce traffic.

Mobile Commerce TrafficSmartphones, on the other hand, are still being used more often for online shopping purposes worldwide, but they make up about one third of the mcommerce share. This means that of all ecommerce activity, smartphone users are contributing about 10 percent.

When it comes to the average amount that users of these devices are spending when they make an order online, it is becoming clear that purchases are not limited exclusively to small items anymore. This reports data even indicates that the average order value made through tablets actually exceeded that of desktops and laptops within the last quarter. That said, PCs still hold their dominance over the online shopping marketplace, by quite a large majority.

The average order value made over a laptop or desktop computer was $136. Just slightly higher was the average order value made over tablets, which was $139. Finally, over smartphones, it was still a high number, though quite a bit lower than the orders made over PCs and tablets, having been $114.

In terms of specific brands and their contribution to mobile commerce traffic, it is Apple’s iPad that reigns supreme. That device is responsible for more than half of the online shopping done over tablets. That share of the tablet commerce category actually increased over the last quarter despite the fact that there is notably greater competition.

Barriers to Online Payments: Making Lemons into Lemonade

It’s no secret that more consumers are turning to online shopping for the convenience it offers, but the truth is that online shopping is hardly without hassles. In fact, it can be a nightmare for merchants. While giant online merchants like Amazon and eBay have mastered the process of capturing an online sale, most ecommerce sites continue to limp through the process. Navigating the complex world of payments, including leveraging promotions effectively, automating subscription renewal and website optimization, the struggle for small to mid-sized merchants can seem unending. According to the latest research from Baymard Institute, the online shopping cart abandonment rates are as high as 67 percent—a startling percentage given that more consumers like to shop online, with online retail sales expected to grow between 9-12 percent in 2013.

Studies have shown that shopping cart abandonment rates increase when the payment complexities of the global marketplace come into play.  Language barriers, alternate payment types and currency issues all make up the reality of today’s online shopping experience. We took a comedic look at some of these challenges through the eyes of two budding entrepreneurs running their own e-lemonade stand.  Check out the short video clip here.

In the real world, there are many reasons why shoppers abandon their carts; below are three of the top reasons why shoppers close out before making that shiny new toy their own:

Lack of local currency or local payment types– ecommerce can be a great medium for businesses to open their doors online and offer goods and services worldwide. However, many businesses are leaving money on the table by alienating the global Mobile Shopping Cartaudience as they do not have the provisions to accept payments in multiple currencies and payment types. Businesses typically like customers to pay in the currency the business is comfortable accepting, not the currency the customer is interested in paying with. While it is understandable that trying to process payments from around the world in different currencies and payment types can be a logistical nightmare for merchants, it is actually a simple obstacle to address. The easiest way to overcome this is to integrate with a third-party payment platform that handles the complexities of payment on a merchant’s behalf so that the merchant can be more productive in fulfilling and processing orders rather than figuring out payments.

No local language, no thanks! – If customers can understand exactly what they are buying and being charged for, they will be more comfortable paying online. Unfortunately, most online payment platforms do not offer a fully localized checkout experience – including local languages and currencies leading to customer confusion and a high rate of cart abandonment.

No single-click buying – For returning shoppers, filling out personal information each time can be frustrating, especially if customers are using mobile devices. Single-click encourages shoppers to come back and easily purchase again; they don’t need to re-enter their information or even have a credit card handy.  Including a BuyNow button on any page, can go a long way in encouraging repeat buyers. (Think “I-tunes” buying on ecommerce sites.)

There are dozens of reasons why customers leave a website empty handed, but these simple tips, along with insight from this cute video about cart abandonment, can go a long way in increasing actual checkouts and ultimately, a merchant’s bottom line.

By Ralph Dangelmaier, CEO of BlueSnap