We have news about e-commerce! We will be talking about the growth of e-commerce, mobile commerce (a.k.a. m-commerce), omnichannel experiences and customers expectations, and delivery companies.
We have been talking about the rise of e-commerce all over the world, especially in Asia. Now the US also reports that e-commerce in the US has grown by 14.8% in 2015. The online sales in 2015 were worth $340.8 billion. However, the growth rate has decreased compared to 2014, where it was 15.4%. Also as IMRG reveals online sales in the UK after Christmas has increased by 15%. And it almost doubled the rate of January 2014.
Aside from e-commerce, m-commerce is also gaining popularity. Not only m-commerce is trending but also smartphones are passing tablets in online shopping. According to eMarketer data, smartphone usage has increased by 95% in 2015 in the US. Smartphone spending is expected to overtake the tablets since now the screen sizes are bigger, the internet is faster, transactions are easier and safer. eMarketer also predicts that smartphones will account for 53.5% of mobile shopping by 2020.
Moreover, in Q4 m-commerce is almost at ties with PC sales. During Black Friday mobile commerce spendings were higher than average. Retail apps are gaining popularity as mobile sales increase. Studies show that 40% of the sales happen across mobile devices, browsers and apps. Customers visit the store’s website via different devices throughout the transaction. And they use a different medium in different steps. The sales through the apps turned out to be 54% while browser sales are at 46%.
Since customers are using different channels during different stages of shopping they expect a seamless omnichannel experience from the stores. What if the store doesn’t provide such a service? They will leave the website. The research in the UK tells that customers will leave e-stores and will choose the competitor if it provides a better user experience.
Smartphone customers don’t demand better omnichannel experiences only. They also want real-time promotions. However, only 7% of retailers can provide for this need. As studies with people all around the globe showed 43% of the customers want the opportunity of ordering out-of-stock items online using the free wi-fi provided in the store. 37% of them want a mobile shopping list option to be available. The research of Accenture concludes that almost half of the customers want real-time promotions that they can get on their smartphones.
After Amazon’s grocery delivery service Amazon Fresh Google has started delivering grocery under Google Express in Los Angeles and San Francisco as pilot areas. It offers same-day grocery deliveries which will cost $2.99 for members and $4.99 for nonmembers. They are also offering free three months trial of membership for the service.
With so many big companies such as Amazon, Google, Uber, etc. entering into this market would small businesses get into trouble? Some delivery startups have already started letting some of their employees. Since wages and other costs are increasing the business is becoming less profitable for smaller startups.
E-commerce is growing fast, so companies must keep up with the trends if they want to succeed. We will be bringing more of the trends and news next week!
See you next week!