Tag: mobile commerce growth

New report sheds light on the success being seen in mobile commerce

Leading market research firm eMarketer has released a new report concerning the state of the mobile commerce sector. The report highlights various aspects of the mobile commerce space, shedding some light on the factors influencing its growth and the challenges it faces around the world. Mobile commerce has been seeing strong growth over the past two years as consumers become more integrated with mobile technology. The proliferation of smartphones and tablets has exposed consumers to a variety of mobile services that they are showing a great deal of enthusiasm for.

Mobile sales expected to reach $133 billion by 2017

According to the report from eMarketer, mobile commerce now accounts for a sizeable portion of the retail sales being recorded in the U.S. The report estimates that mobile sales will reach $41 billion by the end of 2013, a 68% increase over the level they had been in the previous year. By 2017, the report suggests that mobile sales will balloon to $133 billion. Consumers appear to favor mobile commerce because of the convenience that it represents and it is becoming increasingly common for consumers to use their mobile devices to purchase products even when they are already in physical stores.

Tablets are more popular than smartphones

The report notes that tablets have become more popular for mobile commerce than smartphones. While smartphones may be more plentiful among consumers, tablets offer a better shopping experience. Larger screens offer better navigation capabilities and allow consumers to access sites that may not be optimized for viewing on a smartphone. The report notes that nine in 10 consumers are more willing to make a purchase with their tablet than with their smartphones.

Challenges could derail the momentum behind mobile commerce

Mobile commerce does, of course, face significant challenges that could become quite serious in the years to come. Security is expected to remain one of the most problematic issues that faces the mobile commerce sector. Poor infrastructure is also expected to reduce the popularity of mobile payments as consumers run into problems that prevent them from making a purchase with their mobile device.

The channel is booming as brands and companies discover that consumers are buying over their devices.

The latest figures have now been released from the e-Retail Sales Index from IMGR Capgemini, which has revealed that their mobile commerce index is continuing a rapid rise as retailers continue to catch on.

The massive year over year and month over month growth is being credited to retailer adoption.

The report from the latest index indicated a 136 percent growth when June of this year was compared to that of last year, and when May was compared to June this year, an 8 percent growth was recorded. Conversion rates had also experienced a considerable increase, which would prove highly appealing to retailers.

Mobile commerce conversion rates rose massively from 1.27 percent in June 2012 to 2.03 percent this year.

At the same time, retailers are seeing that the spending rates and conversion rates over the tablet mobile commerce channel are approaching those of desktops. This is an opportunity that many of them are refusing to ignore. Even specific sectors are showing promising growth, causing the companies in those areas to get on board.

In the U.K, clothing sales over mobile commerce saw a year over year growth in June of 29 percent, as summer wardrobe updates were made at the start of the season. Even more promising was the area of home and garden products, which saw a year over year growth of 35 percent in the same month as the winter was left long behind and landscaping, gardening, and home reno projects got started. Even travel rose over this channel as summer vacations were planned, with a year over year growth of 15 percent and a 4 percent month over month rise.

According to the Capgemini vice president and head of retail consulting and technology, Chris Webster, as consumer confidence continues to grow in mobile commerce and purchasing with their tablets and smartphones, the index is remaining very strong. The findings from their analysis is only underscoring existing evidence that wireless technologies have brought a great deal to the doorstep of the retail sector, and those companies are not failing to take hold.