Most e-commerce websites are in a race to get their mobile apps up and running, hoping to get an edge over the competition.
So why exactly would users prefer Mobile apps to the good old browser website?
No brainer – Apps overall are more faster, convenient and provide better user experience to customers.
However, 2014 had some notable advancement that boosted mobile apps, namely Apple Pay. The use of NFC technology also changed the way POS transactions were made. The credit card number was not transferred, thus in the event of a breach, the credit card number couldn’t be stolen. Using a fingerprint as an additional form of authentication made the payment even more secure. With such innovation it only added fuel to the fire.
In addition to Apple pay, Mobile wallets like Paytm, Oxigen wallet, MobiKwik, PayU etc. also provide convenient and secure payment options to users. Hence, users will eventually make majority of their purchases using mobile phones.
As the user has the convenience to browse products and make purchases on the go there is a great increase in impulse buying leading to instant gratification.
Fashion and Luxury retailers had the highest share of mobile transactions, while transactions were low in the Home category. This indicates that impulse buying is on the higher side for Mobile platform.
Some statistics stated below are startling and tells us that there is ragging forest fire in mobile transactions and there is more to come.
Deloitte predicts that by end-2015, five percent of the base of 600-650 million near-field communication (NFC) equipped phones will be used at least once a month to make contactless in-store payments at retail outlets.
Goldman Sachs is already predicting that consumer spending via mobile commerce will grow to $626 billion by 201
According to Shopify, one third of e-commerce sales are now happening on mobile devices. This is up from 23% the year prior, and just 12% when they started tracking back in 2012.That means, in only 2 years, mobile’s contribution to total sales has skyrocketed by 175%.
Criteo thinks Mobile is 29% of e-commerce transactions in the US and 34% globally. They predict that this number will grow to 33% in the US and 40% globally.
Mobile share is slightly lower in the US than the global average with 29% while, Japan and South Korea had the majority of their e-commerce transactions via mobile in Q1 2015.
It was also observed that the sale was proportional to the quality of the mobile app or site.
Over the last quarter, smartphone growth outpaced tablet. In the US and most other countries, smartphones represented more mobile transactions than tablets. Asia leads the way in smartphone purchases with nearly all purchases occurring on smartphones.
With the increase in screen size it has become more convenient for users to make their purchases using smartphones.
In the US market Apple continues to dominate on tablets. iPad accounts for 11% of retail transactions vs only 2 % from Android tablets.
Android delivers a significant share of smartphone transactions across the globe, greater than iPhone in Germany, Italy, Spain, Brazil and South Korea.
Share of transactions from iPhone is higher than Android only in US, UK and Japan.
Japan, South Korea and the UK are the most advanced markets for mobile shopping. Mobile share of e-commerce is now over 50% in Japan and South Korea, and more than 40% in the UK. Asia leads the way in smartphone purchases with close to 50% of e-commerce transactions happening on smartphones.
In addition to purchasing products, customers have also been using their smartphones to compare prices and read product reviews.
Mobile commerce is expected to grow at the rate of 42%, three times faster than e-commerce that is expected to grow at 13%.
Mobile commerce does provide additional features namely, NFC, Push Notifications, Mobile wallets, Augmented reality. These features give them an edge over their web counterparts.
By year-end 2016, more than $2 billion in online shopping will be performed exclusively by mobile digital assistants. Mobile digital assistant technologies, such as Google Now, Siri and Cortana will take care of a lot of mundane tasks like entering name, addresses etc.
686 million consumers around the globe will make a purchase on their mobile devices in 2015. This figure is set to increase 21% to 830 million in 2016 and subsequently rise 16% to 961 million in 2017, and peak 13% to 1.09 billion in 2018, according to The Goldman Sachs Group.
Gartner Inc. found in a recent survey that mobile commerce currently generates 22% of digital commerce revenue. The American information technology research and advisory firm predicts that by 2016, 89% of companies will realize that reaching out to their customers through a multi-channel approach will be mandatory, and hence boost mobile commerce.
Mobile commerce transactions are expected to top $115 billion in 2015 and climb to $142 billion in 2016, according to a new report from Forrester Research.
As time passes people will warm up to using Mobile phones for spending money. A lot of people especially residing in developing countries will own a mobile phone but may never own a PC.
Hence, 2014 was the year when e-commerce was firmly introduced to the market and 2015 seems to be the year of mobile shopping apps. 2016 will the year when mobile innovation will further bring consumers closer to their hand(sets) and will not be limited to shopping only.