Tag: mobile commerce online sales

Some companies and techniques are working to expand the use of shopping over this channel.

Mobile commerce is taking off very rapidly but, at the same time, the number of consumers who are using the channel are exceptionally low compared to the number who shop in person or who buy over the internet on their laptops and desktops.

There are a number of reasons that people have hesitated to turn to their smartphones to buy.

People frequently hold back from shopping via smartphone and tablet because mobile commerce often comes with slow internet speeds, improperly optimized websites, long page load times, and concerns over the security of payments. Despite the fact that online shopping no matter where the consumer may be provides a tremendous opportunity for convenience, variety, and price comparisons but even the best apps and websites often lead individuals to learn about a product and then purchase it on a desktop or in a brick and mortar store instead of buying over that channel.

However, many mobile commerce using companies are working to boost the numbers.

The latest sales data from Capgemini and IMRG have shown that from the second quarter of last year to the same quarter this year, there was an increase in mobile commerce sales from 11.6 percent of online purchases to 23 percent.

There are many reasons that consumers are still hesitating to buy over mobile commerce. They include the following:

• Reduced internet performance that doesn’t meet the expectations of consumers.
• Heavy page weight that leads to increased load times.
• Redirection issues
• Security concerns

A mobile commerce survey in which 728 people participated showed that among all of the various tasks that people complete using their smartphones or tablets, “reserve and collect” services, and “shopping online” were still lower than many companies would hope. Among those respondents, only 9 percent shopped online and 27 percent used reserve and collect services (where an item is ordered to be put aside in a store and the customer picks it up in person). This suggests to many that a “click to collect” service may be more appealing to consumers than actually completing the order to be shipped online by way of a small screen device.

Mobile commerce having an impact on online sales

IMRG, a retail industry association based in the United Kingdom, has released a new report concerning mobile commerce. The report shows that mobile shopping is becoming more common among consumers. This may be due to the fact that mobile commerce firms are beginning to take issues like security and efficiency more seriously. As mobile commerce platforms become more secure, consumers are becoming more likely to use these platforms. Efficient platforms also improve the shopping experience, further encouraging consumers to participate in mobile commerce in the future.

23% of online sales now come from mobile devices

The report shows that mobile commerce now accounts for 23% of online sales in the second quarter of 2013. This is an 11.6% increase over what mobile sales had been during the same period in the previous year. While sales are increasing, the report shows that mobile devices are primarily used to research products rather than purchase them outright. While this means that more consumers are using their mobile devices to enhance their shopping experience, it shows that many have yet to ease into the mobile commerce space.

Survey shows majority of smartphone owners have yet to make a mobile payment

A similar survey was recently released by market research firm Econsultancy that shows 51% of smartphone owners have not made a mobile payment with their device in the past six months. Many of these consumers have expressed interest in mobile commerce, but have chosen not to participate due to security concerns and other issues. Security is currently one of the most significant hurdles barring the aggressive progress of the mobile commerce sector.

Security proves to be a problematic issue for mobile commerce

As mobile commerce platforms become more secure, consumers are likely to show more interest in them. Mobile commerce has become popular for consumers and hackers alike, with the latter being drawn to the sector by the abundance of financial information that is readily available therein. Some platforms have been criticized for their lackluster security features, which have placed financial information at risk of theft and exploitation in the past, but this criticism has helped the mobile commerce sector become more aware of the threats that exist in the digital world.