Mobile Commerce to Quadruple in 5 years

Mobile has become the fastest growing platform because the rise in devices, mobile optimized websites, and mobile app development. Naturally we have seen a rise in mobile commerce or “mcommerce” if you will. It has transformed some businesses including Amazon, eBay, and flash sales sites like Gilt. For most other retail companies, mobile represents only small portion of total sales. Experts predict it will stay that way for the next 5 years according to data from Forrester.

Physical retail goods and services made on smartphones were $8 billion in the U.S. last year, accounting for 3% of online sales and less that 1% of total retail sales. Though those numbers were driven up by the outlier Amazon and eBay who both had sales in the billions. Most U.S. retailers mobile represents only 1.5% of online sales. Through the next five years total mobile sales are rise to 31 billion, making 33% growth annually. Making mcommerce 9% of online sales in 2017.

 us retail revenues and growth rates

According to Forrester of the 132 million Americans with and Internet-connected smartphone, only one-fourth have made a purchase on their devices last year. This is kind of surprising considering how many people have used a smartphone to purchase an app, song, or other digital media. The crossover from purchasing a physical item hasn’t translated well on mobile apparently.

It may very well be the retailers fault for not catering to the mobile platform to checkout via mobile devices. Other if they do offer a purchasing app they don’t promote it very well to make it easy for customers to find where to purchase goods. Screen-sizes may play a factor where it’s very difficult to display a receipt or checkout window in an attractive way on a 3-5 inch device. And not to mention more check-outs will provide a photo with the transaction information so that could be more difficult to work around with web-design.

To invest in mcommerce or not?

Smartphone - Mobile Commerce

According to Forrester they say yes. But only invest if the mcommerce experience is quick, simple, and the platform looks good. You can defer to quick checkout solutions like PayPal Express or Checkout by Amazon. It’s recommended that your mobile websites are responsively designed so that it is optimized for the wide variety of today and tomorrow’s devices. Also invest deeper into a great tablet experience because the most purchases are made more often from them rather than a smartphone.

Learn more about small business strategies for mobile platforms by visiting us at Eric Wagner Marketing

Image credits: emptyglass

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Eric Wagner

Eric is a CEO with a background in marketing and search engine optimization specialist (SEO). In his free time, Eric enjoys exercise, gardening, technology, a good book, and spending time with family and friends.

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