Mobile E-commerce: Do People Actually Buy Things On Mobile?

Mobile E-commerce: Do People Actually Buy Things On Mobile?

Here is a recent tweet by Linda Bustos from GetElastic, the leading e-commerce blog:

[blackbirdpie url="http://twitter.com/Roxyyo/status/13336025409519616"]

Aside from Amazon and EBay numbers, there simply isn’t a lot of public information regarding trends in mobile e-commerce transactions. This makes the total volume hard to tell. Here are some observations that we’d like to share with you today:

1. Mobile users buy even from “desktop” stores that don’t have a mobile version. The volume is already quite significant. If there is a good bargain to be had or when the purchase is time-sensitive, the user will find a way to get what they want. In a recent conversation, an online retailer stated that mobile users of their desktop store bought over a million dollars worth of merchandise in 2010. Had the mobile store been in place, the sales would have been even higher!
2. Launching a mobile store will multiply mobile revenue by at least 2x over the first 100 days. We are testing several versions of this “rule of thumb” with the goal of publishing a white paper sometime in Q2. The aggregate effects of reduced bounce rates, improved conversions and a better user experience have a very positive effect on the bottom line for any store.
3. iPad and other tablets are in their own revenue segment. It’s not uncommon to see iPad reported as the #1 mobile device by a retailer (that’s the default Google Analytics setting, as well). However, the iPad is competing with the desktop browsers much more so than with mobile devices. Tablet users typically have an easier time navigating regular websites and should be measured separately when it comes to bounce rates, conversions and revenue.

It’s clear that mobile e-commerce transactions for physical goods are increasingly more common, with many IR500 retailers having cleared seven and eight-figure thresholds in 2010. Everything points to mobile revenue growth accelerating in 2011, as well.