Mobile E-commerce Hits $40 Billion16 Jul, 2014 By: Doug McPherson
NEW YORK – Consumers bought enough products from their phones to make mobile E-commerce a $40 billion market in 2013, doubling 2012 results – and it’s on track to hit $50 billion by year’s end, a new study finds.
The mobile E-commerce market soared from $2 billion in 2010 to $43 billion in 2013, according to the Custora E-Commerce Pulse. In the first quarter of this year, $12 billion in mobile E-commerce transactions were completed.
- A third (33 percent) of purchases on mobile phones came from consumers who went directly to the source, bypassing search engines, while about a quarter (27 percent) of sales came from E-mail marketing.
- For tablets, paid search was the leading channel, driving 25 percent of sales.
- Online purchases on desktops still rule, with most (76 percent) consumers making purchases only there, with only 12 percent buying from more than one device type.
- Once consumers trust a retailer after their first desktop transaction, they’re more willing to make repeat purchases on a mobile device.
- More mobile purchases occur on weekends.
In related mobile news, a CFI Group’s retail satisfaction barometer says the use of mobile apps for shopping purposes doubled in the past year, with 41 percent of consumers actively using mobile apps to hunt for information while shopping.
The report says 67 percent of 18-34-year-olds use mobile apps during their shopping experience. While millennials are typically the focus of retailers’ mobile efforts, most consumers of all ages indicated that they have two to four shopping apps installed, proving that mobile isn’t a generational-only trend
Overall, 41 percent of consumers reported using mobile applications while shopping in stores, almost double the proportion (21 percent) from last year.
Terry Redding, vice president of sales and marketing at CFI Group, says because mobile devices are growing as a shopping tool, retailers need to know how to connect with them digitally.
Almost half of all participants reported that they would favor a store with advanced mobile capabilities, which would encourage them to shop with the retailer more, buy more per visit and even pay slightly more.