40% of E-Commerce Now Done by Mobile Devices
According to the IMRG, around 40% of online sales are now being made on mobile devices such as smartphones or tablets. According to the e-tail trade association, the drive towards making more payments on mobile devices seems to be fueled by an increase in consumer confidence in the technology.
Fast growth in the use of mobile for retail was found in the latest IMRG Capgemini Quarterly Benchmark during the fourth quarter between November 2014 and January 2015, with the figure of 40% growing from the result of 37% from the previous quarter, and 8% higher than the 32% figure found in the same quarter from the last year. Over the last quarter, around 25% of m-commerce transactions were completed on a smartphone, with 75% of sales through tablet devices.
Mobile Impact on User Behavior
Tina Spooner, the chief information officer for IMRG, says that the impact of mobile has been extremely significant on general user behavior. Most of us now carry our phones around with us 24/7, and regard them as an essential factor of everyday life.
In the context of online shopping, the smartphone has primarily been regarded as more of a tool for research, comparing prices and checking information related to products that the consumer plans to buy. However, the introduction of a number of online shopping apps that are optimized for smartphones, along with many websites and online stores optimizing their site design for mobile use has caused a rise in m-retail sales completed via mobile devices, with the number rising from one in five to one in four in the space of a year. Over the same period, mobile conversion rates have also seen a significant rise as more and more shoppers feel more confident in using their smartphones to complete purchases.
Greater Convenience
photo Oregon Department of Transportation
Adglid Hop, the retail director at Capgemini, said that although the quarterly growth of smartphones as an online shopping tool may only be slight, it holds a large amount of significance. Over the past few years, the majority of retailers have taken a number of huge step in order to improve their online shopping experience on a smartphone shopping platform, making it not only more convenient but also safer and more secure for mobile customers to shop online. When coupled with a greater level of connectivity, consumers are now more confident than ever in using their smartphones as a channel for making purchases online rather than simply using them for online window shopping and searching for product information.
However, whilst smartphones are continuing to evolve in significant amounts, tablet devices are being left behind and even reaching what may be seen as a plateau, and to some extent are merely serving many users as a replacement for the home PC or laptop. Due to ongoing investments, increasing ease of connectivity, and ever-expanding screen sizes, it will not be long before tablets are overtaken by smartphones as the mobile online shopping channel of choice. During the coming months, the potential impact of the smartphone on the in-store and online shopping experience will be a key area of development and innovation.
Why Accept Smartphone Payment Methods?
If you are a business owner, the above information should be enough to convince you that if you do not already accept online payments via a smartphone, now is the time to. With more and more consumers using their smartphone or tablet as a way of making purchases online, it makes sense for retailers to optimize their websites for mobile use, and ensure that secure payments over mobile can be made. Many retailers are also developing online shopping apps, which is a good idea if you would like your customers to have a truly convenient and optimized experience when making purchases on their smartphone.
When it comes to making payments on smartphones, your business will also need to be set up to receive credit card payments online with a functioning merchant account. You may also wish to consider using other secure online payment systems such as PayPal, in order to give your customers a greater variety of choice when it comes to payment methods as well as offering a greater level of security and convenience. Many customers prefer to use secure payment methods such as PayPal due to the fact it is quicker and more convenient and they can rest assured that their payment details are secure.
How has the growth in smartphone purchases impacted your business? How have you ensured that your business keeps up with this growth? We’d love to hear from you in the comments.
Guest Author: Carol Trehearn
