Report: Mobile e-commerce sales to hit $250 billion by 2020
Mobile e-commerce sales will account for nearly half of all online commerce in just a couple of years.
This was according to “A Mobile Mindset,” the second volume in the five-part series, “The 2017 UPS Pulse of the Online Shopper.” The report, from UPS, is based on input of over 5,189 comScore panelists who made at least two online purchases in a typical three-month period.
According to the study, mobile e-commerce sales are projected to grow to $250 billion by 2020. Meanwhile, mobile retail sales in the United States are expected to be 48.5% of retail e-commerce sales.
The report reinforces that customers are getting increasingly acclimated to using their smartphones as a shopping tool. In fact, 48% of smartphone users have already made a purchase on their personal device. While these transactions extend across customer segments, 66% of these purchases were conducted by Millennials.
Specifically, 17% of online transactions are already occurring on a smartphone, and 29% of millennials are making these purchases. When given the choice to use apps or mobile web, four in five smartphone users chose to shop using retail apps — a practice that is preferred by 92% of millennials, the study revealed.
“In terms of discretionary spending, mobile commerce (m-commerce) growth is far outpacing e-commerce and brick-and-mortar,” the study said.
“Over the past five years, shoppers have simply become more comfortable using their mobile devices to research and buy online, resulting in more time and money channeled via m-commerce,” the study continued. “The projections for continued growth in m-commerce make it essential that retailers of all sizes be properly positioned to provide an optimal experience via mobile devices.”
There is a huge trend of mobile commerce and the business is going to be bigger and bigger in upcoming years.