Mobile transactions to hit $730 billion by 2017 as purchases soar
Sofa shoppers are pushing up sales via their mobile devices, according to new research, with tablets taking eyeballs away from laptops and desktop computers.
The value of remote transactions for digital and physical goods purchased via mobile devices is expected to exceed $730 billion annually by 2017, a new report from Juniper Research has found.
According to the report, transaction growth will be driven by the increasing scale of real world (non-digital) purchases from major brands and retailers, with companies such as Domino's in the US and Argos in the UK already seeing 6% to 7% of all sales occurring via the mobile channel.
The report also noted that as consumer tablet adoption continues to rise, there will be significant migration of purchasing activity from laptops and desktops to tablet devices, with consumers increasingly engaging in online shopping while watching TV.
It found the development of this 'couch commerce' trend would result in mobile and nomadic devices accounting for 30% of e-retail within five years. However, it also observed that such transactions would continue to comprise a small minority of a global retail sales marketplace currently worth more than $16 trillion.
As report author Dr Windsor Holden pointed out: 'We have already moved towards a multitasking, multimedia environment which offers brands the opportunity for far greater engagement with consumers than was previously the case. Mobile is increasingly being deployed at all touchpoints in the retail process: product discovery, product purchase, customer retention.'
In this regard, the report also noted the growing importance of the mobile device as a hub, marrying remote and physical purchases. It cited the example of the eBay Fashion App and Image Swatch, where consumers take or upload a photograph of an item to search for a product online. eBay is planning to enhance this application by enabling users to compare prices and item availability both online and via partner bricks and mortar stores; the end user can then pay for the item via PayPal before picking up the product from the local store.