Research highlights the need for mCommerce

mCommerce has rapidly evolved in recent years since the smartphone was first introduced, and according to recent research, the industry is continuing to grow well into 2013.  According to figures published this week by IMRG and Capgemini, 1 in 5 online sales are now made through a mobile device, and these figures are expected to increase once again as we enter Q2.  The previous quarter saw mobile account for 15.4% of UK eCommerce sales.

This surge is likely to have been influenced by the huge increase in tablet-owners following strong sales of the devices over Christmas. The percentage of e-retail visits via mobile devices also rose steeply, accounting for almost 30% of total visits in Q1 of 2013, up from 24% in the previous quarter.

Mobile has long been considered a key part of any retail strategy, yet the growth rates have been staggering nonetheless. Sales via mobile devices shot up from 0.9% in 2010 to 4% in 2011, and reached 12% of e-retail sales in 2012. Visits via mobile have risen from 2.6% in 2010 to 8.2% in 2011, reaching 21.3% of all e-retail visits in 2012.

Tina Spooner, Chief Information Officer at IMRG explains: “Mobile is clearly a game-changer for the UK e-retail industry, with m-retail sales increasing at more than double the levels we saw in the early 2000s when IMRG started tracking online sales. At the beginning of 2010 mobile sales accounted for just 0.4% of the UK e-retail market – within three years it has surged a staggering 5,000%, with m-retail now accounting for one in every 5 online purchases.

“With the continuing shift away from desktop to mobile internet use, it is inevitable we will see the latter platform outstrip desktop PCs as the preferred device for shopping online, and from the latest figures it is apparent this may be sooner than expected.”

Chris Webster, VP, Head of Retail Consulting and Technology at Capgemini adds: “In 2020 when we look back on the last ten years, we will undoubtedly see it as the ‘mobile decade’. In the first three years alone we have seen sales via mobile devices increase from nearly zero, to over 20% of all e-retail sales. However, we are only scratching the surface and over the next few years we will see the technology reveal its full potential.

“The mobile device will be the aggregator of all digital services, enabling the internet to recognise who we are and to give us access to an endless list of personal features. As we access all these services digitally, tickets, boarding passes, keys, payment and loyalty cards, and even passports, will become to us what typewriters are to my children; objects of intrigue and amusement.”

In contrast to these positive findings, it has also been reported that 76% of SME retailers are being left behind when it comes to incorporating mobile commerce as part of their sales strategy. Onepoll undertook the study on behalf of MoPowered in which 89% of SME retailers cited mCommerce as essential for capturing new business. The merchants surveyed also believed that mCommerce sales would grow by a third within the next 5 years.

Despite this recognition of the importance of mCommerce, only 24% of these retailers actually had a site that is compatible for mCommerce at the time of the survey. The main reasons which were stated for not going mobile were perceived high costs, lack of resources and concerns about security for customers.

Onepoll undertook the study on behalf of MoPowered in which 89% of SME retailers cited mCommerce as essential for capturing new business. The merchants surveyed also believed that mCommerce sales would grow by a third within the next 5 years.Despite this recognition of the importance of mCommerce, only 24% of these retailers actually had a site that is compatible for mCommerce at the time of the survey. The main reasons cited for not going mobile were perceived as high costs, lack of resource and concerns about security.

Here at Visualsoft, we offer a wide range of eCommerce and mCommerce services, including a standard mobile site and an advanced option for those seeking further functionality from a mobile commerce website. For more information on the services we offer, contact one of our experienced team members today on 01642 633604 or visit our website at www.visualsoft.co.uk.

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