Anuj Nayar, Senior Director of Global Initiatives at PayPal
Here at PayPal, we’re constantly looking for new ways to help merchants expand their sales channels. Today, we’re unveiling a new research report that is focused on the habits of mobile shoppers or “mobile movers”. In examining the online and cross-border shopping habits of 17,600 consumers in 22 countries, one thing is evident: mobile shopping is on target for meteoric growth. Mobile commerce (or m-commerce) is growing at three times the rate of e-commerce. Between 2013 and 2016, the compound annual growth rate for m-commerce is projected at 42 percent vs. 13 percent for e-commerce.
PayPal is committed to helping merchants of all sizes achieve success. While mobile shopping is still relatively nascent (around 33% of online shoppers currently shop via smartphone), it is clear that m-commerce is on the cusp of a major breakthrough. As mobile increases its global shopping footprint with ease and convenience, it’s crucial for small businesses to adapt their strategies to find new buyers and increase sales. Back in November and in advance of the holidays we released global research highlighting key growth areas for cross-border merchants and now let’s dig deeper into the mobile shoppers:
Who are these Mobile Movers?
18-34 year olds account for an average of 59 percent of mobile shoppers around the world. In China, they account for 86% and in Mexico, 88%! This fast-growing group of consumers are increasingly using their phones for every part of their lives. Utilizing this knowledge to get their attention now will reap rewards for savvy international sellers for years to come. Making it as easy as possible for customers to be able to click and buy will be integral to growing mobile sales.
Mobile in the US: Everyday Basics, Bigger Screens and Security
US shoppers are using their smartphones to purchase everyday necessities such as groceries, but barriers for shoppers include screen size and security concerns. The US was about average globally in the amount of shoppers who have bought online in the past year using a smartphone, which put them on par with countries including UK, Australia and Brazil. Highlights included:
Practical Shoppers – While US smartphone shoppers are buying everyday needs, one quarter of mobile shoppers in China are purchasing leisure, hobby and outdoors products more than anything else. The UK was more similar to the US with babies/children’s supplies and groceries as the most common mobile purchase. Size Matters – Nearly 40 percent of smartphone shoppers said the screen size was too small. Breaches Taking Their Toll – Compared to the rest of the world, US shoppers are more concerned about security. This could be the result of breaches that have been growing in numbers or more mainstream in recent years. Room for Growth – While the percentage of smartphone shoppers in the US is about average compared to the rest of the world, the US fell far behind mobile leaders like China, who had more than double the percentage of smartphone shoppers in the US. Considering the giant population difference between both countries, there is still a significant m-commerce opportunity for growth in the states.
Hot Tips: What does this mean for Merchants Trying to go Mobile?
Interested in growing your sales via international selling and tapping into the mobile market:
The numbers show it pays to invest in your own app and/or integrate with an online marketplace that offers an app. Mexico and China, two countries with booming youth demographics, showcase a growing international trend of consumers preferring to do their shopping via app instead of a smartphone’s browser. No matter where a merchant is in the world, ensuring products are easily visible (no matter the size of the screen), accessible and that payment is simple will be crucial for growth. It’s important for small business owners to have the peace of mind to concentrate on growing their business while their payments partner focuses on payments and data security. Read thefull report and visit PayPal PassPort today to learn more about selling cross-border (and how to get the attention of the growing number of mobile shoppers).
