E-Commerce Sales Increasing Due to Popularity of Mobile Devices and Tablet Shopping

Amanda Caruso

Professor Gupta

BK 459-01

January 28, 2014

Assignment One – Identify External Trend

“Retailers Are Driving Huge Increases In Mobile Shopping And Buying – This Is

How”

Sales made on mobile device accounted for more than 20% of e-commerce sales on Black Friday in 2013

40% of traffic on online retails sites came from those shopping on mobile devices

Popularity of sales due to the number of American who own a smartphone now 63% of consumers owned a smartphone at the end of the 3rd quarter of 2013

Increase in the number and usage of mobile coupons in grocery, clothing, and department stores industries across the country Location targeting data allows more digital coupons to be offered and allows retailers to see

who’s redeeming coupons

Increase in the number of loyalty programs that allow customer to pay without cash Stores learn customer’s shopping habits and offer deals

“Study: Consumers More Likely to Shop On Mobile Devices than PCs”

A study shows that smartphone and tablet users are more likely to visit a retail website in comparison to desktop computer users

Businesses without mobile friendly websites or store apps could turn away a third of their potential customers

In June, 90% of mobile device users visited a mobile e-commerce website compared to 78% of desktop users visiting a store’s website

Sales made on smartphones are greater than purchases made on tablets; but when shopping on a tablet consumers purchasing is 20% higher than on mobile devices Average spending was around $47.14 on mobile devices and $56.87 on tablets

Mobile commerce sales are highest in the third and fourth quarters of the year

“Study: Consumers More Likely to Shop On Mobile Devices than PCs”

“Staples Acquires Runa, Boots E-Presence”

Staples recently acquired Runa, a software based company in order to boosts its online sales presence

Staples is currently the second largest online retailer behind Amazon

Staples purchased Runa in order to offer consumers a more personalized shopping experience Systems will offer personalizes sales for individual, delivery times, and free consignment

delivery offers

In August 2013, Staples also invested in to a e-Commerce Development Center in Seattle Center will research and enhance mobile platform opportunities and custom shopping

experiences

In June of 2014, Staples is expected to launch an omni-channel store to incorporate its website and mobile platform stores into its store-front locations

“Luxury Brands Start to Think Mobile”

Luxury brands are beginning to switch towards mobile commerce by developing mobile apps and mobile device friendly websites

A study conducted by L2 found that many luxury jewelry and watch brands rely on outdated technology on their websites that do not support mobile device shopping opportunities Websites did not respond to touch-and-swipe technology and could not switch between portrait

and landscape orientation

Lack of mobile support stems from the multi-media heavy websites originally adopted when entering the online market

Brands are now launching mobile device applications and mobile supported websites iPad apps increased by 10% and 5% for Android devices the luxury brand market over the past

year

Experts encourage luxury brands to work towards tablet friendly applications where they can easily display pictures and better connect with their target markets

“Starbucks Digital Offering Set for Caffeine Shot to Stir Global Sales”

Starbucks’ sales were challenged this year by having to compete with coffee stores around the world through ecommerce Global sales were up from last year, but were lower than predicted sales results

The company is hoping to increase its sales by offering more deals through its “My Starbucks Reward” programs Through the holiday season, the company offered deals based on geo-targeting its

customers through their mobile devices

The company has also recently allowed customers to place orders from their mobile device and pay for their drinks from their phones too

Howard Schultz, CEO, recently stated that “We are just beginning to appreciate the full magnitude and possibilities of the Starbucks mobile payment platform opportunity”

Mobile Device Shopping Industry Impact

The growing popularity of mobile devices and tablets with consumers across the global is dictating that businesses have mobile friendly website or apps where consumers can shop from

Businesses in many different industries are working on e-commerce besides retail stores Banking from phones and grocery delivery services

Retails stores need to ensure that user interface for e-commerce is easy for customers to navigate Study have shown that design and user experience problems will cause customers to not make any

purchases

Led to businesses purchasing software companies or spending more money on redesign their websites and apps

Rise in offering deals to customers based on their past shopping experiences and more deals when using mobile platforms for shopping

Brick and mortar stores are also incorporating online sales into their storefronts by offering less in-store products or the ability to order out of stock items in the store

References

Fowler, G. (2014, January 7). Do online grocers beat supermarkets?. The Wall Street Journal. Retrieved January 26, 2014, from http://online.wsj.com/news/articles/SB10001424052702304617404579304901729135002

From E-Commerce to Physical Retail Stores: Video. (n.d.). Bloomberg.com. Retrieved January 26, 2014, from http://www.bloomberg.com/video/from-e-commerce-to-physical-retail-stores-qjAGm6kmSuWwQageCPmOuw.html

Heggestuen, J., & Ballve, M. (2014, January 24). Retailers Are Driving Huge Increases In Mobile Shopping And Buying - This Is How. Business Insider. Retrieved January 26, 2014, from http://www.businessinsider.com/mobile-retail-and-commerce-trends-2014-1

Joseph, S. (2014, January 24). Starbucks digital offering set for caffeine shot to stir global sales. Marketing Jobs & Marketing News. Retrieved January 26, 2014, from http://www.marketingweek.co.uk/sectors/food-and-drink/news/starbucks-digital-offering-set-for-caffeine-shot-to-stir-global-sales/4009226.article

Marc, J. (2014, January 20). Luxury Brands Start to Think Mobile. The New York Times. Retrieved January 26, 2014, from http://www.nytimes.com/2014/01/21/fashion/luxury-brands-start-to-think-mobile.html

McDermott, J. (2013, August 27). Ad Age Digital. Advertising Age Digital RSS. Retrieved January 26, 2014, from http://adage.com/article/digital/study-consumers-shop-mobile-pcs/243843/

Mobiquity. (2013, December 11). Marketwired. Marketwire. Retrieved January 26, 2014, from http://www.marketwired.com/press-release/apple-target-best-mobile-shopping-finds-new-consumer-satisfaction-study-from-mobiquity-1861311.htm

Staples Acquires Runa, Boosts E-Presence. (2013, October 3). Yahoo Finance. Retrieved January 26, 2014, from http://finance.yahoo.com/news/staples-acquires-runa-boosts-e-202502647.html