E-Commerce News Roundup: Mobile App Sales Overtake Mobile Web

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Lisa Coghlan outlines the latest e-commerce news and industry updates, including the growth of mobile app sales, increases in next day delivery for e-retailers, and BHS’ move to online.

Mobile App Sales Surpass Mobile Web Salesmobile phone and tablets

According to recent research, mobile commerce (m-commerce) sales are up by 40% in 2016, with the majority of these transactions taking place on mobile apps. Meanwhile, e-commerce has grown by 11% in 2016 globally. Additionally, mobile app visits exceed those of mobile site visits.

The research revealed that in Q1 2016, $40 billion worth of online sales amounted to $26.6 billion on mobile and $13.5 billion on desktop. From the $26.6 billion mobile sales, $13.4 billion came from mobile apps, and $13.2 billion came from mobile websites.

A recent report from the IAB, ‘Mobile Commerce: A Global Perspective’ revealed that 57% of consumers have been using their mobile to buy for the past year.

IAB’s senior vice president of mobile and video, Anna Bager, stated:

Marketers and media agencies need to fully embrace smartphones and tablets as a critical pathway for all shopping activities and increase investment if they want to build meaningful relationships with mobile consumers, driving them from discovery to purchase.

Next Day Delivery Increases Across E-Retailers

delivery package

Next day delivery has seen significant growth according to the Index, with total e-retailer orders increasing by 18.2% in August 2016. For the first time, next day delivery orders exceeded that of standard delivery services.

In August 2016, 36.7% of orders were next day delivery while 33.8% of orders were the standard delivery option.

Head of e-logisitics at IMRG, Andrew Starkey, suggested that this change may be due to the fact that many e-retailers are using next day delivery offers to overtake competitors. He added that this shift may also be due to some retailers offering next day delivery as standard when you order products that cost over a certain value.

Research from JDA and Centiro suggests that consumers are willing to increase the overall value of their transaction if it means qualifying for free delivery.

Starkey suggests that a move towards faster delivery times for e-retailers should come as no surprise, adding, “It doesn't represent a capacity issue during most of the year - but during peaks, such as the Black Friday period, promotion of next day delivery should be handled more cautiously.”

BHS Moves Online

online store

After BHS went into administration earlier in 2016, the homeware brand has relaunched online, just a few weeks after its last High Street store closed.

BHS managing director, David Anderson, stated:

“With a customer base of well over one million people and the fact that we have secured contracts with so many leading suppliers who are providing products that were among the most popular with our shoppers, we are in the best possible position for launch.”

The new site has launched with a streamlined navigation, significantly reducing the amount of products available on the site and concentrating on its bestsellers.

New clothing ranges will slowly be added to the site by November 2016.

IPA Bellwether Report Reveals Online Marketing Growth

upward trend graph

According to the latest IPA Bellwether Report, online marketing is continuing to grow as more businesses see the value in their internet marketing reach.

Where more traditional forms of marketing tend to see fluctuations, online marketing has continued to grow in importance for a number of reasons.

According to Business Matters, one of the main reasons is that internet marketing can be specifically targeted to the customer. Whether this is in the form of remarketing text ads or video ads based on recent searches, this form of internet marketing makes it easy for advertisers to target customers in a much more granular way.

This means that results are also much easier to track, because you can pull significant data about your customers from your current online marketing campaigns. This data will then provide a better insight into customers’ needs, helping brands to continue to re-market to their customers as effectively as possible.

More E-Commerce News And Advice

Read our previous e-commerce news roundup: Transparent Product Information Key to Success

Considering how your mobile site can compete with apps before the Christmas season? Make sure your site is solid on mobile and desktop with support from our web design and development team – experts in mobile site optimisation.

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