Tag: mobile commerce sales

Mobile commerce may have fallen $16 billion short during the 2013 holidays

Mobile spending grows, but retailers miss out on a significant opportunity

The 2013 holiday shopping season has proven to be quite successful for most retailers and brands. A recent report from comScore show that online spending passed $46 billion during the holiday season while another report from the National Retail Federation notes that overall spending reached $601 billion. Mobile spending has grown significantly in 2013, but Jumio, a market research firm, has released a new report that suggests that mobile commerce has missed a major opportunity.

Mobile commerce misses out on $16 billion

According to the report from Jumio, mobile commerce missed out on $16 billion over the 2013 holiday season. Overall, the report shows that mobile spending has grown, but many consumers have reported a lackluster experience with their shopping experience. Mobile shopping platforms from retailers were launched late last year in order to attract the mobile audience, but these platforms were hastily developed and some were crippled by glitches that prevented people from purchasing products.

Abandoned carts may be the culprit behind the loss of revenue

Mobile commerce shoppingThe problem may lie with abandoned shopping carts. Carts are quite common in e-commerce and they serve as a place where products are stored before the checkout process has been finalized. Jumio suggests that consumers running into significant problems on mobile commerce platforms often caused them to abandon their online shopping carts. In many cases, platforms failed to store product information properly, causing consumers to abandon their digital shopping carts and start the process from the beginning.

Poor shopping experience cause consumers to drop mobile commerce

The report shows that some 51% of consumers opted to abandon their digital shopping carts because of security reasons. These people did not believe that a mobile commerce platform would be capable of keeping their financial information safe.  Some 47% abandoned carts because of difficulties regarding mobile payments, while 41% claimed that a mobile commerce platform they were using was simply too difficult to manage. Another 23% of consumers reported that their transactions would not go through during the checkout process, causing them to seek out more convenient forms of shopping.

Mobile commerce sales boom at Blinkbox

The video streaming service saw a tremendous increase in its smartphone and tablet based revenues.

Throughout the holiday shopping season, Blinkbox – a video streaming service owned by Tesco – experienced a massive increase in its mobile commerce sales, to the point that they were considerably greater than their overall online sales.

The company reports that its sales through smartphones and tablets increased by a massive 674 percent.

That said, including its mobile commerce sales they saw an overall year over year increase in their revenues over the same period ( November 25 through January 5) of 245 percent, when taking all channels into consideration. That said, the increase specifically over mobile devices reflects both effective marketing by the company and rapidly growing interest in these gadgets by consumers, when it comes to consuming streaming video content.

Within the mobile commerce sales category at Blinkbox, it was tablets that truly led the way.

Mobile Commerce Sales - BlinkBoxAs a result of an impressive mobile marketing plan by the company, the largest growth in sales figures was by far over this channel. That said, it was tablets – including the Hudle devices from Tesco, itself – that truly produced the largest share of results. In the three months that led up to Christmas, the company managed to sell 400,000 of their own tablet devices.

Those tablets are sold preloaded with the Blinkbox app. That mobile marketing strategy was certain to have played an important role not only in the number of sales that occurred over mobile devices as a whole, but particularly over tablets. Clearly it was a highly effective strategy, considering the totals that the company was able to achieve during that period.

During that span of time, a very impressive 65 percent of the mobile commerce sales that came in for the Blinkbox video streaming services originated from devices other than laptop and desktop computers. This includes connected TVs, game consoles, set top boxes, and other types of connected device, in addition to tablets and smartphones, of course. This channel has clearly proven itself for the company and it will be interesting to see what direction it chooses to take in order to encourage this growth to continue.