Mcommerce Helps Ecommerce Eclipse $1.3 Trillion, China & US Lead the Way

December 29, 2014     By : LTP Team

The value of commerce transactions conducted via mobile handsets/tablets will exceed US $120 Billion by 2017 with 150 Million users. Mobile commerce growth is driven by increasing convenience, value & security available to the consumers via smart devices. Retailers are bringing efficient mobile websites/apps and even delivering omni-channel experiences.

M-commerce accounted for 15 – 17 percent of retail e-commerce sales in 2013. Huge scope of m- commerce, in both online and in-store. Transaction value per tablet buyer per year would overshadow that of the smartphone buyer. Both devices are important for discovery, payment, deals & offers. Channels: direct traffic, email extend lead over social media. PoS mobile payment value projected to grow exponentially. Merchants are eager to reduce service fees and other costs. Proximity marketing and contextual offer are taking off.

As per recent data by eMarketer, when it comes to retail products and services purchased on the internet, ecommerce will account for 5.9% of the total retail market worldwide in 2014, or $1.316 trillion. By 2018, that share will increase significantly to 8.8%, yet retail ecommerce will still account for just a fraction of in-store purchases even as it nears $2.5 trillion by the end of our forecast.

China and the US are leading ecommerce markets, combining for more than 55% of global internet retail sales in 2014. China’s growth over the next five years is expected to widen the gap between the two countries. China will exceed $1 trillion in retail ecommerce sales by 2018, accounting for more than 40% of the total worldwide. The US is expected to maintain its position as the second-largest retail ecommerce market in 2018, totaling nearly $500 billion that year, while the UK will account for about one-quarter of that figure, landing in a distant third place.

China and UK have had much higher proportions of online-to-total retail sales than the US. For example, digital buyers—consumers who purchase online at least once during the year—will represent only 27.5% of China’s population in 2014, while more than 10% of all retail purchases occur via the internet. This points to the fact that consumers in China who buy online do so often. And this is being driven more by access to internet on mobile.

Let’s Talk Payments has released a report on “U.S. Mobile Commerce Market Report” bringing in more insights on the impact of mcommerce on the overall commerce ecosystem.

LTP Team

A group of content writers, bloggers, journalists and editors from the Lets Talk Payments team.

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