Mobile e-commerce sales will hit $638 billion by 2018
In the previous year mobile e-commerce has been on the rise and will inevitably become more important in the coming years. Research has shown that global e-commerce sales made through mobile devices are expected to cross the remarkable number of $638 billion by 2018. Especially the rise of online sales in the developing markets such as China and India is encouraging retailers to go mobile for global expansion.
Google Glass and Apple Watch have launched enhanced wearables and thereby created new opportunities to reach out to customers. The availability of e-commerce applications on mobile devices is helping to drive sales and revenue. Big player such as Amazon and Flipkart are already getting 50 percent of their revenue from consumers shopping on their mobile phones. Thereby the market is focusing on the development of mobile site, even though it must be mentioned that this is at the moment still an urban phenomenon.
Predictive analytics is helping e-tailers to provide better solutions in real-time enabling compelling user-experience even on mobile screens. Commerce companies are striving to enable all features from search-to-purchase on mobile apps, such as facilitating product research, price comparison, view ratings and reviews, and payment.
The global marketplaces
The online marketplaces are growing significantly with the increase in the internet penetration and smart phone usage. According to several studies on the dominant role of global marketplaces, such as “Global Power of Retailing 2015” and “The Rise of the Global Marketplaces”, these global players are intertwined with the rise of mobile usage. In Asia online marketplaces rather than pure inventory-led companies tend to serve as the primary e-commerce model and in Europe it becomes harder and harder for SEM’s to compete against the big global marketplaces such as Alibaba and Amazon.
These players fuel the development of mobile sites and thereby sustain this development. Internet enabled mobiles are making shopping a unique experience for buyers. e-Marketplaces provide a technology platform for sellers to participate and a trusted environment to scale up rapidly, increase profit and is highly valued by the customers. The non-inventory led B2C model also allows the e-commerce players to provide attractive discounts and offers which are difficult for inventory led brick-and-mortar shops as well as for pure e-tailers.
The improved shopping experience
Customers value real-time, relevant and personalized information and offers. Thus, retailers will need to surround their services with very strong privacy and security regulations, in order to gain trust, protect customer information and keep up transparency. These aspects will be crucial in retaining loyalty in mobile shopping.