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eCommerce growth continues at full strength

Published in e-commerce by max.favilli, 3/4/2015 0

eCommerce growth continues at full strength around the world, driving overall economic growth in all markets. China alone is expected to generate $1 trillion in eCommerce sales by 2019 in a new report by Forrester. The growth will be fueled by mobile apps and improving logistics networks.

That’s good news for Alibaba, which saw its shares fall after its latest earnings report sparked concerns about the impact of its investment in mobile on its revenue growth.

China is the the world’s largest online retail market since 2013, when sales reached a total of $307 billion, and it’s now expected to grow at +19.9 percent every year until it reached $1 trillion by 2019.

Investing in mobile apps is key for e-commerce

Most people in China become internet users through the use of mobile devices and do access the Internet through mobile only.

In the Forrester survey, 25 percent of respondents told they shop weekly from mobile phone.

According to Criteo latest eCommerce report, mobile is now about purchasing, non just researching, and mobile shopping now accounts for over 30% of eCommerce sales globally.

Comscore data is showing a similar picture, mobile shopping accelerating with a peak increase of 47 percent through 2014.

As a side note, should be no surprise google is flooding webmasters inbox around the world with alerts about mobile usability issues and threatening to penalize SERP ranking.

Clock is ticking

It’s clear that if you’re not taking action to control mobile commerce as a sales channel you’re leaving an increasing amount of money on the table. But that’s not all, you’ll be missing the intimacy of mobile devices, which are almost always with shoppers, the ability to send push notifications, in-shop beacon based services…

Sounds like it’s mobile really matters.

If you are a developer be happy

All this should sound like good news to mobile developers and the companies that employ them. The traditional business model of building an app, make it wildly popular (which mean it have to be free) and sell it to Facebook for $1 billion proved hard.

Given the growth rate of mCommerce, mobile developers really need to shift from thinking about apps that encourage consumers to play games to thinking of apps to sell things. With a new rush of companies to invest into more focused mobile apps (take Citibank reaching out to app developers to build the future of mobile banking), there will be a huge demand of mobile app developers with a new familiar value adding role.

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