Tag Archives: eCommerce

How Mobile Commerce Is Changing Retail Sales

Smartphones have brought about unparalleled convenience in our daily lives. We are constantly connected to our rolodex of contacts with a variety of methods of communication. We can access all the information available on the world wide web anytime. Consumers looking to make purchases on the go can find the nearest store with ease. For businesses, the mobile platform represents not only a major avenue for advertising, but an opportunity to give customers the ultimate convenience when purchasing products.

According to Internet Retailer, mobile commerce represents 30% of all US e-commerce and rose by 38.7% from 2014 to 2015. Mobile commerce drives sales, and businesses lacking a mobile strategy are missing out on a major opportunity to increase revenue. Here are the top mobile commerce trends for 2016:

INTEGRATING PHYSICAL WITH DIGITAL

Although the digital world is virtually omnipresent in households, the appeal of immediately receiving one’s purchases by shopping in store remains attractive. Retailers are increasingly offering a variety of online + in-store options to capitalize on the convenience of digital and the immediacy of making a physical purchase.

Apps like Curbside have partnered with Target & Kroger’s to enable customers to reserve their purchases and skip the line when picking up products.

Beacon-enabled features like geo-targeted offers and loyalty rewards are becoming more and more popular. Geo-targeted offers can drive in-store traffic when delivered effectively. According to Target Marketing Magazine, 85 of the top 100 retailers are planning to adopt beacon technology by the end of 2016. Business Insider has predicted beacons will directly influence over $44 billion in US retail sales in 2016.

PERSONALIZED MOBILE PAYMENTS DRIVE LOYALTY

Although services such as Apple Pay and Android Pay were once hailed as the future, they have had a hard time receiving mass adoption. While mobile payment services haven’t gained popularity, the mobile wallet has made a major impact on commerce. Starbucks drives 16% of transactions through its mobile app. Walmart Pay arrived in December 2015, and now Target is next in line to develop their own payment app.

WEARABLES ON THE RISE

According to Arc, there will be a 61% growth in wearable ownership in 2016. App developers and retailers are still plotting on how to capitalize on wearables. Many anticipate a hands-free shopping experience in which one can simply walk out with their purchases and have automatic charges through wearable devices. Malls and large stores like Walmart may use wearables to make it easier for consumers to navigate stores. Wearables represent a major avenue for retailers to create innovative strategies and dictate trends to come.

THE MOBILE WEB DRIVES PURCHASES

While about 85% of time spent on mobile devices occurs in apps, the mobile web has actually proven to be a more successful in driving website traffic. While app usage is prevalent, consumers spend 80% of their app time on their top 3 apps. The mobile web drives twice the amount of site traffic than mobile apps. With 82% of smartphone users looking to their phones in stores when deciding what to buy, many anticipate the mobile web to surpass apps as the largest revenue driver in the next few years.

HOW CAN MOBILE COMMERCE HELP YOUR BUSINESS?

With technology in constant flux, the potential to drive revenue with a refined mobile strategy is constantly growing. Mobile strategies must be created, enacted and reevaluated with every new OS and device. Mobile is an ongoing investment. Understanding the value of a mobile strategy and how each device can enrich a customer’s interaction with your business will lead to long-term revenue growth.

Apple Pay Shakes Up eCommerce

One of the major features which defined iOS 8 as a success was Apple Pay. Combined with Touch ID, Apple Pay allows users to make purchases on their iPhone using finger-print scanning technology equipped on iPhone 5 and 6. Apple Pay has aroused its fair share of controversy from the banks, who claim Apple, in addition to Google and Paypal, is infringing on one of their core revenue streams. This post will explore the ins and outs of Apple Pay, it’s potential impact on eCommerce, and what it has to offer your business.

Let’s start with the basics. Apple Pay is a mobile payment system and digital wallet designed to make both in-store and online purchasing easier for the user. When purchasing items on a smartphone from iTunes, the App Store, or third-party apps, Apple Pay uses Touch ID for instant check-out. When purchasing items in-store, Apple Pay utilizes near-field communications so that, like in the digital world, all it takes is a fingerprint scan for a seamless check-out experience.

Apple Pay is not the first of it’s kind. Google Wallet, launched in 2011, was the first major mobile payment system. Google Wallet also utilized near field communications, bu Google Wallet, unlike Apple Pay, did not catch on in any big way. In fact, the recent surge in Apple Pay use has actually caused a resurgence in Google Wallet use.

One of the main differences between the two platforms is Apple Pay’s insistence on protecting the user’s private information. “We are not in the business of collecting your data,” said Apple’s Senior Vice President of Internet Software and Services Eddy Cue at the Apple Pay announcement in September. “So when you go to a physical business and use Apple Pay, Apple doesn’t know what you bought, where you bought it, or how much you paid for it. The transaction is between you, the merchant, and your bank.”

When you add a card with Apple Pay, it only stores a portion of your credit card information, along with a device-specific Device Account Number, but all of your personal information is encrypted. Apple Pay demonstrates it’s not only possible to have secure in-store mobile transactions on your iPhone, but  these transactions are actually even more secure than physical ones.

Apple Pay has been expanding rapidly. It launched with the support of McDonalds, Whole Foods, Nike, and Uber. Recently, ten more banks, including SunTrust, TD Bank North, and Commerce Bank all agreed to use the service. Apple says in a recent New York Times article it supports the cards of 90% of the credit card purchase volume in the US.

Statistics on Apple Pay point to staggering potential. According to MarketingLand, in September 2014, 49.7% of online shopping done on a mobile phone was on an iPhone. 81.6% of tablet e-commerce transactions are done on iPads.

So what does Apple Pay mean for eCommerce? For one, it makes secure purchasing easier than ever for consumers. There’s hope that given the increased competition in payment options, retailers could see decreased fees and improved profit margins.

Alex Martins, chief executive of the Orlando Magic, recently said to the New York Times: “One of the biggest pieces of feedback we get from our fans is that the food and beverage lines are too long… It keeps them from going to the concession stand because they don’t want to miss the action. This, and technologies like Apple Pay, will speed up our service.”

Retailers are also hoping for opportunities to team up with Apple Pay for promotions, however, this would require Apple to keep transaction data in their database, which Apple is currently opposed to for security reasons. As the service refines, it seems inevitable there will be exclusive Apple Pay deals and more of an effort to push consumers to utilize the service. The question is whether Apple Pay will eventually be able to take the next step and replace physical credit cards. Only time will tell.

Mystic Media is an app development and strategic marketing firm providing a host of services to clients, from Android and iOS Development, eCommerce, Web Design, and more. Contact us today by clicking here, or by phone at 801.994.6815