Mobile spending to double over next year – research
THE amount of money spent online via mobile phones and tablets will more than double over the course of the next year, new research suggests.
Mobile shopping, or m-commerce, has already risen 55pc compared to a year ago, and an item is now purchased on eBay every second via a smartphone or tablet.
Consumers, however, say that frustrations over speed and consistency of connectivity are putting them off using their phones even more. Thanks to new 4G connections, offering speeds around five times faster than on most current mobiles, it is estimated that the amount spent via m-commerce will now rise a further 115pc in the next 12 months, during which time the number of smartphones will also overtake the number of PCs in Britain.
Universal 4G coverage, which will reach 98pc of the UK, is expected within approximately a year, and will therefore add £1.8bn to the UK economy, the research from Conlumino found.
Of that increase, £800m is expected to come from existing mobile shoppers spending more money, while another £1bn will come from new users.
It’s estimated that just under a third of all adults currently use a smartphone for some aspect of their shopping. This includes browsing for inspiration, but also so-called “showrooming”, where users check prices on their phones while in a rival physical shop. Only around ten per cent currently actually complete transactions on their mobiles.
Neil Saunders, a director at Conlumino, said “Retailers today must take every chance to engage consumers, giving them every possible opportunity to buy and interact with their brands. An 'omnichannel' approach is key to making this happen and retailers can’t afford to stand still.”
Ebay, who commissioned the survey, said it was a call to action for all retailers to think about their “virtual shop window”. The site claims 4.3mi users made their first purchase on the site last year, generating $13bn worldwide. That is expected to rise to $20billion this year.
Olivier Ropars, Senior Director of m-commerce at eBay Europe, claimed “Consumers today want convenience and speed. The arrival of universal 4G will bring with it a more immersive, instant and intimate shopping experience than ever before. Retailers must act now to turn this opportunity into an exciting reality.”