Mobile commerce posted astounding growth rates in 2015. Find out why mobile commerce growth is outpacing regular desktop ecommerce, and what to do about it.

1. Post Link: Mobile Commerce Growth Is Outpacing Desktop eCommerce
Mobile Commerce Growth Is Outpacing Desktop eCommerce
Mobile commerce posted astounding growth rates in 2015. A recent Forrester Research survey
indicates that smartphone sales accounted for 17% of total retail sales in 2015, and that sales
from smartphone devices grew 53% year-over-year.
This trend is likely to continue in 2016 and beyond. In fact, Paypal research indicates that global
mobile commerce growth should outpace eCommerce growth by three to one, while US mobile
commerce should grow from $54.6 million in 2014 to $96.3 million by the end of 2016.
Compared to the roughly 10% increase eCommerce is expected to see each year, mobile
commerce in the US has a projected growth rate of approximately 30 percent each year through
2016.
Why is Mobile Commerce Growing So Quickly?
What’s behind this staggering mobile commerce growth? According to ComScore, it is due
simply to the rapid increase in the number of smartphone owners – of whom there are about
200 million today in the U.S. – and a growing familiarity with making mobile purchases.
That customers have grown increasingly comfortable with purchasing online was proven in the
2015 holiday shopping season, where the use of mobile devices accounted for 63% of all online
retail visits. This increase in mobile commerce is placing additional pressure on traditional brick
and mortar and multi-channel retail businesses.

2. B2B Mobile Commerce Growth
Mobile commerce growth isn’t limited to B2C; it’s happening in B2B as well. Usablenet recently
reported that 16% of B2B sites are already being visited by mobile users. In another survey,
Usablenet found that 78% of B2B companies believe mobile is the future of online commerce.
Half of those surveyed already had a mobile commerce channel in place, and 75% planned to
offer mobile commerce by the end of 2014.
IT industry analyst Gartner Group predicts that mobile commerce is an untapped growth
opportunity for B2B marketers, who have so far been lagging their B2C counterparts in terms of
generating revenue from mobile. B2B marketers generate only 19.4% of revenue from mobile,
while B2C generates 22.6%. But several B2B companies are leading the way, showing what the
possibilities are.
Gartner referenced Grainger as one such company. Grainger has developed a robust mobile
app that lets customers maintain lists, keep track of their order history, chat with a company
representative, and search for products.
Mobile Commerce: Not Just for Kids
The turn toward mobile isn’t just happening among the millennial segment, either. A recent
Forrester study concluded that although millennials (26- to 34-year-olds) do lead other
generations in terms of tablet adoption, 35- to 44-year-olds show the highest levels of actual
tablet use during the process of researching a purchase.
Other mobile commerce research bears this out. A recent survey by KRC research for Verizon
found that 70% of millennials purchased a product via a mobile app in 2015 (up 85% from
2014). Among Generation X, that number was only slightly lower, at 66%. Even baby boomers
had significant mobile commerce purchases with 39% having purchased a product via a mobile
app in 2015.
The biggest surprise in the Verizon/KRC research is probably the widespread adoption of
mobile commerce among baby boomers. According to Scott Charlston, public relations
manager at Verizon, “The oldest Baby Boomers are turning 70 in 2016…as a group 70% of
them own a smartphone, and they’re making transactions as they approach retirement – 43%
do mobile banking and 39% are shopping with smartphone apps.”
What Stands in the Way of Mobile Commerce Growth?
Paypal’s research indicates that the top barrier to mobile commerce growth is small screen size
and lack of functionality on mobile sites, which may be mobile-responsive but are often not fully
optimized for mobile purchasing.
This finding ties into research that found large numbers of B2B buyers doing research on
mobile devices, but turning toward desktop or other channels when it was time to make a
purchase. A mobile responsive site can be read on a mobile device, but unless the eCommerce
functionality is optimized for mobile, the actual purchase itself may be difficult if not impossible.

3. What Does Mobile Commerce Growth Mean for B2B?
What do these statistics mean for manufacturers and distributors selling B2B? They indicate
that in the very near future, B2B brands seeking to maximize profits will need to have a solid
mobile commerce growth strategy in place. Those that already offer a mobile purchasing
experience will need to continue to improve their mobile offerings, with more robust functionality
and better security.
B2B buyers are already adopting the use of mobile for the research portion of their buying
journey. As these functionality issues are addressed, we can expect to see continued mobile
commerce growth in B2B.
Is your company offering mobile commerce as part of your online strategy? We’d love to hear
from you in the comments.
Post originally located at: https://www.handshake.com/blog/mobile-commerce-growth/
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