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Mobile Shopping to Reach $50 Billion in 2014

Mobile Shopping

Mobile Shopping to Reach $50 Billion in 2014

Meg Rahner July 15, 2014

Mobile shopping has experienced an 1875% growth in the past four years, from $2.2 billion in 2010 to $42.8 billion in 2013. By the end of 2014, mobile e-commerce is expected to hit a monumental $50 billion in sales, according to a recent report from Custora E-Commerce Pulse. This report is compiled of data from over 100 online retailers, 70 million consumers and $10B in transaction revenue. The report has several key takeaways:

1. Mobile now accounts for a third of online shopping 

Just four years ago, 97% of all online shopping was done from a desktop PC. At the end of Q1 2014, 36.9% of visits to online stores came from mobile devices while tablets now account for just over 12% of site visits, leaving conventional PCs with 63% share. However, mobile only accounts for 23% of online orders and just 18% of revenue. This shows us that while users frequently shop from their phone, mobile conversion rates still trail PCs.

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2. Cross-device shopping is the future 

As of Q1 2014, 88% of customers use only one device to make purchases; however, Custora’s research indicates that cross-device shopping is growing quickly and we can anticipate this to become more integrated in our future shopping habits. According to the report:

Many of the shoppers we interviewed feel more comfortable making the first purchase with a retailer on a desktop computer. Once trust has been established after the first successful transaction, they are more willing to make repeat purchases on a mobile device. Maybe this is an early indicator of more distributed purchasing across devices.

While 76% of customers still make purchases using only their desktop, these figures represent significant growth — at the beginning of 2012, only 4% of shoppers had made purchases on more than one device type.

3. Apple dominates e-commerce, but Samsung is challenging their lead 

Of those who make e-commerce purchases on a tablet, 80% of them use iPads followed by Samsung tablet at 15.3%. While this may seem like an enormous difference in userbase, Samsung tablet users are growing rapidly – orders made from Samsung tablets grew from 1.9% in 2012 to 15.3% in Q1 2014. Additionally, iPhone’s share of e-commerce orders done on mobile phones went down from 75.1% in 2012 to 50.6% in Q1 2014. Samsung phones have more than quadrupled their share of phone orders over the same time period — growing from 6.9% in 2012 to 30.5% in 2014.

“Apple’s mobile supremacy remains,” Custora stated, while noting that it “continues to be challenged, most notably by Samsung and more recently, Amazon.”Screen Shot 2014-07-15 at 11.26.09 AM

4. Social media isn’t generating sales; email marketing is. 

While many brands are incorporating social media into their sales strategy, it accounted for only 0.6% of sales on phones and 0.2% on tablets in Q1 2014. Customers responding to email marketing and shoppers going directly to e-commerce sites (including app traffic) accounted for the highest share of purchases on phones. Email marketing generated 26.7% of sales on mobile phones, compared to only 20.9% on desktop, and 23.1% on tablet. Direct traffic also drove a larger share of purchases on mobile phones, with a third (32.9%) of sales coming from shoppers going directly to the source.

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Custora is a SaaS platform designed to help online retailers better understand and market to their customers. They’re on a mission to remove the “mass” from marketing with software tools that focus on customers as individuals with unique needs and interests. Their software employs the state-of-the-art in customer analytics methodologies and integrates directly with email providers to help marketers deliver more relevant, meaningful communications. They work with some of the leading domestic e-commerce innovators including EtsyFabThreadlessRevolve ClothingBirchbox, and many more retailers spread through the the world.

Meg Rahner

Meg Rahner
Meg is the PR Coordinator for CircleClick and a writer for MobileFOMO. She is from Erie, Pennsylvania and has a BA in Public Relations from Penn State University. She moved to San Francisco shortly after graduating in 2010 and loves life on the west coast. Since moving to SF, she has contracted for the Academy of Art University's Marketing team, LinkedIn's Recruiting Team, and is excited to be pursuing her passion for writing and PR in her current roles.
Follow me on twitter @megrahner

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