Tag: mobile shopping

Report shows that mobile commerce will see major growth through 2020

Mobile commerce is expected to see significant growth in the coming years, according to a the Mobile Checkout Report from BI Intelligence. Notably, the report contradicts others in showing that consumers are shopping via mobile browsers rather than applications. This may be bad news for some retailers, as some are beginning to develop their own mobile payments apps in an effort to effectively engage mobile shoppers. Regardless of this, however, more consumers are expected to use their mobile devices to shop online.

Mobile will account for 45% of all online sales by 2020

The report shows that mobile commerce accounted for 12% of the $303 billion e-commerce sales that were recorded in the U.S. last year. By 2020, however, BI Intelligence predicts that mobile will account for 45% of all online sales, with e-commerce sales expected to reach $632 billion that year. The report shows that adult consumers are spending more time shopping on a mobile device, but they are actually making online purchases through other channels.

Digital commerce is growing more quickly than conventional retail

The growth of digital commerce is outpacing the growth of traditional retail. According to information from the Department of Commerce, retail sales saw a 2% increase during the last quarter of 2014. By comparison, digital commerce saw 15% growth during the same time period. Mobile devices played a major role in the growth of digital commerce, as more consumers are beginning to rely on their smartphones and tablets to get their shopping done.

Retailers are having trouble encouraging consumers to actually make purchases from their mobile devices

Retailers are beginning to find it difficult to convert mobile shoppers into actual paying customers. The report from BI Intelligence shows consumers are quite willing to use their smartphones to browse for products and do research on items they may be interested in. After conducting such research, consumers often go to their computers to make purchases, as they see conventional e-commerce as a convenient way to purchase the products that they are interested in.

eMarketer has now released new data that has show that consumers in the U.S. aren’t keeping up with the globe.

Some of the latest data issued by eMarketer has revealed that American consumers purchased an estimated total of $48 billion of products and services over m-commerce channels throughout 2015.

That represents an increase of 32 percent when compared to the same time in 2014.

Throughout 2015, m-commerce shopping made up an estimated 22 percent of all online retail shopping, according to the eMarketer figures for the United States. That represents a rise of 3 percentage points over the same figure from 2014. While that does appear to be a strong figure, it also shows that mobile shopping is being used more broadly in other parts of the world. For example, in South Korea, 46 percent of all online retail sales were conducted over smartphones or tablets. That represented 5.1 percent of the whole retail sales total for 2015.

Similar m-commerce figures were seen in other parts of the world, showing that the U.S. is lagging behind.

In China, for example, 50 percent of all online shopping sales and nearly 8 percent of retail purchases occurred over smartphones and tablets throughout 2015, according to the estimates from eMarketer.

Comparatively, in the U.S., consumers continue to use their mobile devices primarily for informing themselves about products as opposed to actually making a purchase. In the United States, under 2 percent of total retail sales are conducted by smartphone or tablet. Moreover, even though there have been some major mobile payments players that have entered that market – such as Apple and Google – only 14 percent of Americans said they would be interested in purchasing something over their mobile devices during the holiday season, said statistics from Bankrate.

Even specifically among Millennials, the demographic most likely to use their smartphones for activities such as shopping, only 20 percent said they had intended to use m-commerce for holiday purchases either online or through wallet apps that would be used in a retail brick and mortar location. It remains clear that the United States is a market facing considerable barriers to mobile shopping.