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Retail Technology, Retail technology News

Shopping by mobile will grow to $119 billion in 2015

Friday February 19 2010

Latest research predicts mobile commerce will take 8% share of e-commerce market within the next five years

Latest research predicts mobile commerce will take 8% share of e-commerce market within the next five years

 

In 2015, shoppers around the world are expected to spend about $119 billion (£76bn) on goods and services purchased via mobile phones, which will represent about 8% of the total e-commerce market according to ABI Research.

 

“Mobile online shopping is reaching critical mass,” says senior analyst Mark Beccue. “In the US, mobile online shopping rose from $396 million [£254m] in 2008 to $1.2 billion [£769m] in 2009. While definitions of ‘mass market adoption’ vary, a more than fivefold increase in one year indicates significant consumer interest."

 

The analyst said it was noteworthy that even that $1+ billion turnover in the US is dwarfed by the size of the mobile online shopping market in Japan, which exceeded $10 billion (£6.4bn) in 2009 alone.

 

European consumers play rapid catch-up

 

ABI Research’s new “Mobile Commerce” study also found the market was growing solidly in Europe too and is expected to outpace the US by the end of 2010.

 

“The driver for mobile online shopping in the US has been the recent sharp spike in smartphone adoption and the corresponding enthusiasm for mobile internet. Also, many more retailers have been launching mobile commerce websites,” added Beccue. “A longer-term driver in global terms is the fact that in many less-industrialised regions, mobile is virtually the only way to access the internet.”

 

The research firm said that, not only does mobile online shopping allow shoppers to manage their time better, but in the fourth quarter of 2009, an interesting trend emerged: consumers were checking out products in bricks-and-mortar retail stores and using their phones for comparison shopping.

 

A subset of mobile commerce is the trade in virtual goods, generally associated with online gaming. This too has seen rapid uptake, as mobile payments are the best option for online purchases under about $20 (£12.80) and this way of shopping is especially suitable for those – often young gamers – without credit cards.