318 million people live in the United States and more than 222 million of them are carrying a smartphone. No longer used for simply making phone calls, the cellular phone is also a personal hub for communication, entertainment and eCommerce. In 2017, US consumers will spend more than $160 billion from their mobile phone. How easy will it be for them to buy course materials from their phone?
Where is mobile now?
The number of mobile users increased from 2015 to 2016 by more than 25%. While increases due to advances in technology are not unique, last year was the first time the number of transactions from a desktop computer decreased, offering validity to the dominance of mobile in the eCommerce landscape.
Of all purchases during the last 12 months, almost 20% have been completed from a mobile website or app. PayPal™, the global online payment system, conducted their own research into the mobile eCommerce explosion and learned transactions completed via mobile will outpace traditional eCommerce three-fold. The rationale is not surprising – there are more mobile devices in people’s hands today than there was yesterday.
Where is mobile going?
People want information and the mobile phone has made it easier to have data delivered in seconds. During the last two years, internet searches originating from consumers smartphones have increased more than 200%. In 2015, Google said mobile queries outpaced the number of desktop searches for the first time and has continued to grow. Internet searches have included movie times, research on products and services, and price comparisons.
More users accessing more data has increased the amount spent per mobile transaction. The AOV (actual order value) refers to the amount spent per online transaction. The AOV for books, music and games is $198, second only to computers with an AOV of $212. Why have users been so open to spending large sums of money using their mobile device? Convenience, speed and ease.
A phone which allows the user to spend money like they would on their home computer and a simple transaction process encourages the user to hit the “buy” button.
By 2020, mobile eCommerce is expected to result in more than $284 billion annually, and the primary resource allowing customers to spend money is a mobile optimized website.
Tomorrow, learn how students can purchase the materials they need when they're on the move.