Where’s Mobile Commerce in the eCommerce Boom?

Every year suppliers, wholesalers, and retailers wade deeper in the tide of the omnichannel. This is eCommerce at work, turning traditional sales channels on their head. Mobile is part of the picture. But how big is mobile commerce in the overall eCommerce boom?

People aren’t just buying online. They’re buying on their phones more and more. But how much? And what does it mean to omnichannel businesses?

The Big Picture

eCommerce still represents only a small portion of all retail in America.

But don’t kid yourself. eCommerce is growing fast.

The US Commerce Department reported last week that online sales reached $394.8 billion in 2016. That is a nearly 16% increase over 2015. It was the highest annual growth in three years.

Retail sales in total hit $3.375 trillion, which was a 3.9% jump over the years before.

So while eCommerce is growing faster than retail as a whole, representing 41.6% of all retail sales growth in 2016, it still only accounts for 12% of the total.

eCommerce is shaping the omnichannel world. It’s a work in progress, and we still haven’t seen fully how mobile commerce will change things.

Mobile Commerce in the Mix

Mobile commerce is shopping on any handheld, internet-connected device.

Mobile commerce has lagged eCommerce growth over the last few years. This has been in part to the lagging development of mobile commerce ready websites.

A recent Business Insider article describes the mobile shopping experience to date as “a nightmare.” The mobile shopping experience has frustrated users. In the second quarter of 2015, people spent way more time on phones than desktops. But, only 15% of their online spending was through a smartphone.

In the second quarter of 2015, people spent way more time on phones than desktops. But, only 15% of their online spend was on a smartphone.

There are signs that this is changing. Inside Retailer reports that sales on mobile devices accounted for nearly 21% of eCommerce sales for the fourth quarter of 2016.

Shoppers spent $22.7 billion in that period, up 45.5% in the same period the year before.

There are several reasons for this. Among them, smartphone form-factors continue to improve, adapting to the user. Meanwhile, eCommerce is getting smarter, adapting to the smartphone.

All omnichannel companies should pay attention to where mobile is going. Companies must accommodate the channels your customers will use to make a purchase.

Having a website is not enough. But, a website with responsive design will ensure optimum user experience regardless of the phone a customer uses. eCommerce platforms such as Shopify make this easier.