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Mobile Shopping to Reach $50 Billion in 2014

Mobile Shopping to Reach $50 Billion in 2014

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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.