Mobile commerce (M-commerce) set to double by 2018!
A giant in the field of e-commerce solutions, ShopVisible, provided interesting data recently that has a huge impact on businesses in the e-commerce industry as the data evidenced that as of end 2013, nearly 30% of traffic for any e-commerce site was accessed from mobile devices such as Smart phones and tablets, instead of the traditional desktop sources. And even more telling is the fact that an estimated 7% of revenue from online sales was attributed to other sources such as shopping engines which provide price comparisons.
ShopVisible's report also points out that despite increasingly more mobile behaviour by consumers being highly evident, many e-commerce businesses have yet to jump on the bandwagon in terms of developing responsive e-commerce sites that are easily accessible and navigable on smaller mobile devices.
The e-commerce solutions giant warns that based on the 20% jump in mobile traffic during the 2013 year-end holiday season alone, any e-commerce reliant business that does not immediately embark on developing a mobile responsive website in 2014 will certainly see their sales, and consequent revenues suffer. A point to note is that though only 4% of sales transactions were made via mobile devices, the dollar value of this 4% was equal to that of desktop transactions.
ShopVisible attributed some e-commerce sites’ increase in visibility to re—direction of more traffic from popular comparison shopping engines like Nextag and Google Shopping. More than 30% of ShopVisible's clients place their goods for sale on online marketplaces such as Amazon and eBay, which has generated more than a quarter of the clients’ total revenues from such online sales. E-commerce based businesses continue to look to both on- and off-line advertising channels to generate their online business traffic, but based on findings by e-commerce experts, mobile responsive websites with regularly updated content are the ones which will continue to enjoy higher ranking in online searches amongst viewers, and benefit the most from loyal e- and m-commerce consumers.
Goldman Sachs, a multinational investment banking firm, has conducted extensive studies of e-commerce trends, estimating a figure of USD638 billion in 2013 alone for overall online sales across all device platforms from desktops and smart TVs, to smart phones and game consoles. And based on their calculated projections, the established investment banking firm is expecting the online sales numbers generated via mobile devices (m-commerce) alone to nearly equal that of 2013's overall e-commerce transactions in 5 years’ time, at a whopping USD626 billion by 2018!
Goldman Sachs also predicted that more than just slightly over half a billion global consumers will make a mobile purchase transaction in 2014 and this figure will nearly double in 4 years' time; estimated at 535 million and 1.09 billion in 2014 and 2018 respectively. An even more interesting data to note is that based on forecasts by Goldman Sachs and the United Nations projections for population growth, nearly 15% of the people populating our Earth will make a purchase transaction via their mobile device at least once in their lifetime by 2018!
That's certainly a rather pertinent fact that all e-commerce business owners should take note of in today's swiftly changing and extremely extensive e-commerce and mobile commerce landscape.
Last modified on 08 April 2016