Category: ‘Mobile Commerce’





The Impact of Mobile Commerce on the Holiday Season

Posted on December 19, 2014 at 1:39 pm

If one trend emerged from the 2014 holiday season, it’s that more consumers are choosing not to wait in lines on Black Friday but instead shop at home from their smartphones and tablets. Mobile (and tablet) commerce continues to evolve in the online retail world and has become a focal point for many retail strategies during the holiday season and moving into 2015.

But what should online retailers know about the impact of mobile commerce on the holiday season? Here are a few things…

  • Mobile sales account for a large (and growing) portion of sales on key retail holidays – According to IBM, U.S. mobile sales accounted for 22% of all 2014 Cyber Monday sales and 41% of all site traffic. In general, consumers had more site sessions via smartphone devices but converted at a higher rate on tablet devices (mobile 2.2%, tablet 5.7%). Tablets also had an average order value of $121, over $20 more than smartphones.

 

  • Mobile devices are used to check prices (especially with older shoppers) – While mobile sales continue to increase, these sales are primarily skewed towards younger shoppers who are more comfortable purchasing on mobile devices. Especially for shoppers over the age of 40, mobile devices are used to check prices but rarely used to buy online (only 6% of all mobile purchases are made by consumers in this age range).

 

  • Black Friday is even more popular than Cyber Monday for mobile U.K. users – Mobile sales grew 36% year-over-year on Black Friday in the U.K. and was led by a surge in mobile traffic with over 60% of all site sessions originating from mobile devices. 47% of all 2014 Black Friday sales also occurred on mobile devices, 4% more than the Cyber Monday percentage.

 

  • In-store mobile payments are also becoming more common – Some consumers have become more comfortable with online shopping on their mobile devices because they occasionally use these devices for in-store purchases. According to Accenture, only 58% of U.S. internet users have never made an in-store mobile payment, down significantly from 83% in 2012.

 

  • Mobile advertising continues to be a minor factor during the holiday season – Despite the strong number of mobile sessions during the holiday season, very few retailers opted to increase their paid search spend on these devices (especially smartphone only ads). Only 9% of all holiday advertising spends between November 27 and December 1 were used on smartphone paid ads.

 

  • E-mail marketing continues to be key for driving mobile holiday sales – With more consumers relying on their mobile devices as their primarily method for e-mail communication, it has become key for retailers to get the right messages into their inbox. On Black Friday, e-mail marketing impacted approximately 27% of all online retail sales, with many sales happening on mobile devices or through a cross-device purchasing path.

 
 
In conclusion, the emergence of mobile commerce was one of the most impactful trends during the 2014 holiday season. As we look into 2015, mobile devices will likely continue to increase not only in sessions on online retail sites but also in conversion rates as a larger percentage of consumers continue to become more comfortable completing transactions with their mobile devices.

 

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Global Mobile Commerce Growth (INFOGRAPHIC)

Posted on March 28, 2014 at 2:21 pm

 

How does the global mobile commerce growth affect the retail industry? Our new infographic focuses on the latest global growth of mobile commerce, inspired by the recent projection from Goldman Sachs that 535 million consumers worldwide will make a purchase this year on a mobile device.

Mobile commerce has continued to grow year-over-year for over a decade around the world and is projected to continue to see strong growth in the years to come. With mobile sales worldwide projected to be $626 billion by 2018, the sales from mobile devices alone in 2018 could almost eclipse sales from all eCommerce devices in 2013 ($638 billion).

Please reference our infographic below for more information!

Global Mobile Commerce Growth Infographic

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How iOS7 and the iPhone 5S / 5C Will Affect Mobile Commerce

Posted on September 27, 2013 at 10:18 am

It’s that time of year again – no, not the holiday season – but when Apple launches a new product and online retail professionals wait to see how the new changes will affect mobile commerce. So what should online retail professionals know about the new iPhone 5S / 5C and the completely redesigned iOS7? Here are a few things…

  • The Fingerprint ID system could become a digital payment method – This sole innovation built into the iPhone 5S could modernize mobile commerce as a whole. Often the difficulties of remembering and entering information and passwords on mobile devices results in consumers not making mobile purchases – these difficulties could be directly eliminated with a fingerprint ID system. Payment information could safely be stored within a mobile device and purchases could be made by scanning a fingerprint – meaning the owner of the phone can only access and approve purchases made on the phone (although there are still some security concerns). While currently the fingerprint authentication only works with the Apple App Store and iTunes for online payments, it’s likely this offering will be expanded to other online payment services in the future.

 

  • Apps and mobile sites may no longer work with iOS7 – The change from iOS6 to iOS7 has been a major one, especially when dealing with the changes to applications and websites. Certain older applications which may have worked on iOS6, including retail applications, may not work correctly or at all on iOS7, forcing some app develops to update their applications to run on iOS7. As a result, some apps are now charging their current customers to “upgrade” their app to iOS7 – almost as if the new app version is a new version of software.

 

  • The speed of the iPhone 5S could change consumer behavior – One of the major benefits of the iPhone 5S as advertised by Apple was the new A7 chip, or the first ever 64-bit processor in a phone. What does this mean for mobile commerce? According to Apple the iPhone 5S is twice as fast as the iPhone 5 which means consumers will continue to rely more heavily on their phones for everyday usage. As the gap between mobile and desktop technology continues to close, it appears some consumers will use their mobile phones moving forward for tasks such as online shopping which have been done primarily on traditional desktops in the past.

 

  • The iPhone 5S debut in China could push mobile growth in the country – For the first time ever, Apple has decided to launch the new iPhone (or in this case iPhones) in China concurrently with the rest of the world. Previously Apple would wait approximately three months before launching their latest devices in China to meet the product demands of other parts of the world – this would force iPhone advocates in China go to difficult measures (such as importing iPhones from a foreign country) to get access to the latest Apple device. The ease of acquiring an iPhone 5S / 5C in China, along with not having to pay any additional import costs, could mean the latest iPhones will gain more traction globally given the large mobile population (over one billion mobile subscriptions) of China.

 

 

In conclusion, most iPhone launches seem to have a major effect on the mobile commerce industry and the launch of the iPhone 5S / 5C and iOS7 is no different. The fingerprint ID system has the potential to be groundbreaking in eliminating a major barrier in mobile commerce (payments) and could simplify the entire mobile payment process. The huge increase in speed and the global presence of the iPhone 5S could also help to move the mobile industry forward globally by allowing consumers to do more with their mobile devices and rely on them more often. Although there may be some application issues with the launch of iOS7, it’s clear the new changes from Apple are a step in the right direction to help drive mobile sales for online retailers. It will be interesting to see how competitors such as Samsung and Microsoft respond with their future innovations.

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