Warc Blog

US mobile e-commerce grows 19-fold

14 July 2014
NEW YORK: Mobile e-commerce sales in the US grew from $2.2bn in 2010 to $42.8bn in 2013 and are expected to increase to $50bn by the end of this year, new analysis has shown.

According to e-marketing services provider Custora, that represented growth of 1,875% from 2010 to 2013 while adding that the first quarter of 2014 alone generated $12.2bn in mobile e-commerce sales.

It found direct traffic was the primary driver of mobile phone e-commerce purchases (32.9%) while email marketing drove 26.7% compared to only 20.9% on desktop and 23.1% on tablet.

Organic search accounted for 16%, but social media accounted for less than 1% of mobile orders (0.6% via mobile phones and 0.2% via tablets).

Over a third (37%) of online store visits came via mobile devices by the end of Q1 2014, Custora said, up from 3.4% at the beginning of 2010.

Its analysis – based on over 70m consumers, 100 internet retailers and $10bn in transaction revenue – clearly outlined the growth of mobile, but also showed purchases via a desktop dominated conversation rates, Marketing Land reported.

From January 2013 to March 2014, desktops recorded an average e-commerce conversion rate of 4.3% compared to 2.8% for tablets and 1.4% for mobile phones.

Interestingly, Custora also found online consumers prefer to make their first purchase on a desktop, only moving to a mobile device for repeat purchases after establishing trust with the retailer.

Elsewhere, the study found only 12% of consumers used multiple devices to shop in Q1 2014, although the number doing so has tripled since 2012.

In order to reach these multi-device users, Custora CEO Corey Pierson advised brands to segment them according to the devices they use, Internet Retailer reported.

"The fastest-growing retail brands segment their customer bases and know that different customer segments have unique device preferences, which often translate to varied product category preferences and specific purchasing patterns," he said.

Data sourced from Custora, Marketing Land, Internet Retailer; additional content by Warc staff

 
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