Mobile Commerce to Represent Half of All Online Sales by 2020
We all knew that mobile shopping was a big deal. Throw in mobile payments used in brick-and-mortar stores and the potential for profitability was astounding. A new report from UPS—who has a serious stake in keeping the online shopping frenzy going—says that, by 2020, mobile commerce will account for around $250 billion in sales annually, about half of all online shopping.\
The UPS report projects that most of the mobile commerce action will be taking place on smartphones, an action largely driven by millennials. Given that millennials account for about two out of every three dollars spent on mobile purchases, this isn’t out of line. The study further notes that mobile commerce growth is rapidly outpacing its brick-and-mortar equivalent, and even simple eCommerce operations are falling to mobile growth.
One-click checkout is proving to be a major boost to this development, and consumers are increasingly comfortable with not only using mobile devices to find new products, but also complete the purchases on these as well. That means more time spent on mobile devices, and more cash routed through these venues.
We’ve already seen developments happen on this track for some time now, as more shoppers turn to mobile devices not just outside the store, but also in stores as well. Whether they’re comparing prices, looking for reviews, or pulling out their Apple Pay platform—or whichever Android-based equivalent you prefer—to actually pay for purchases, mobile is increasingly a part of the shopping environment.
In turn, that serves as a clarion call to all those who would sell goods to the community: get your mobile house in order or risk losing out on the next generation of sales. Failing to be ready here, offering things like free Wi-Fi access to those who want to run those comparisons or search out those videos, will only encourage potential customers to go to those businesses that aren’t squeamish about offering up what the customer wants.
The UPS study underscores exactly what it is that customers want these days, and businesses fail to provide it at their own risk. Still, knowing what the customer wants is good news for businesses, who now have a clearer path to success at the hands of mobile commerce.