Smartphones Generate .70¢ of Every $1 in Mobile e-Commerce: Javelin

Smartphones Generate .70¢ of Every $1 in Mobile e-Commerce: Javelin

Research Firm Believes Mobile Shopping is Key to Retail Success this Holiday Season


San Francisco, CA—Mobile e-commerce, through both apps and browsers, is surging to new heights. In fact, it grew 60% in 2015 to reach $120 billion, according to new research by Javelin Strategy & Research.

“Mobile devices have become the growth engine for online retail payments as a whole. They outpace PC retail payments’ dollar growth 12 times over. Increasing smartphone saturation and consumers’ growing comfort in making purchases through their phones are powering this wave of mobile commerce,” the survey notes.
This growth does provide opportunities for retailers. But Javelin found “too many merchants still offer experiences that are optimized for larger screens.”

Additionally, they “fail to meet consumers’ expectations for speedy checkout and flexible payment options.”

Javelin’s new study is titled Mobile Online Retail Payments 2016: Reinventing Shopping in a Mobile-First Era.

The study examines how retailers are pioneering new tools to create a new generation of immersive shopping experiences. These tools include augmented reality.

The study finds that purchases via mobile browsers are much more common than payments made through a merchant’s native app. In fact, it reveals purchases via mobile browsers last year totaled $75.3 billion. Apps accounted for just $46.9 billion.  javelin-mobile_e-commerce-graph1Javelin believes many retailers struggle to differentiate their native app shopping experience from that available through browsers. Thus, they give on-the-go smartphone shoppers little reason to install or open a merchant’s app.

“With the holiday shopping season upon us, retailers must stay off of consumers’ naughty list by meeting consumers’ mobile shopping expectations for a streamlined experience and fast and secure checkout options,” advises Emmett Higdon, director of Mobile, Javelin Strategy & Research.

“Cutting edge retailers like Adidas, Nordstrom and Sephora are also using augmented and virtual reality to provide shoppers with mobile-exclusive experiences. They enable them to preview purchases in their own homes and virtually ‘try’ products before making a decision.”

Javelin Survey Methodology

Consumer data in the report was primarily collected from a random-sample survey of 3,182 respondents. It was conducted online from July to August 2016. Data was gathered and weighted to target respondents based on representative proportions of gender, age, income and ethnicity compared with the overall U.S. adult population.

Javelin is a research-based consulting firm that advises its clients to make smarter business decisions. Its analysts offer unbiased, actionable insights and opportunities to help clients sustainably increase profits.