Mobiles sales are on a tear. The 2016 Holiday season saw more than $24 Billion in sales from mobile devices from Nov 1 through Dec 20. This is an incredible number as it accounts for 31% of the $79 Billion spent online. In other words, 1:3 people now buy from a phone vs. a PC. The data is from Adobe’s report that tracks sales for the top 100 online retailers (link).
Key data points include:
- Total Online Sales: $79.2B
- Total Online Sales Growth: 10.7%
- 49 out of 50 days have resulted in over $1B in revenue
- Desktop Share of Sales: 69%
- Smartphone Share of Sales: 21%
- Tablet Share of Sales: 10%
What is stunning is that Mobile accounted for 28% of online sales in 2015 and only 19% in 2014. The trajectory is clear: Mobile will likely hit 33% of online sales in 2017 and 35+% in 2018.
The Challenge for Online Sales
The challenge for retailers is now complicated. On the one hand, you must continue to support traditional PC commerce, but on the contrary, you must also support the emerging trend for mobile commerce. An interesting data point missing from Adobe’s report is the number of sales driven by platforms such as social business. While social commerce, a new channel where the consumer buys from a chat app such as Facebook Messenger, is new to the USA, countries such as China are now masters of social buying.
Digital Commerce Fragmentation will likely be the buzz words that describe online sales over the next few years. How do you plan to address this thorny issue?