Recent studies show that 51% of mobile consumers are purchasing physical goods in a mobile shopping movement. So for the many people who use their smart phone to pay for things, only half of them are buying things that require shipping.
Research acquired from Javelin, in the July/August edition of TransactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... Trends, estimates that $217 billion will be spent through mobile phone shopping by the year 2019. This research concludes that consumers are becoming more and more comfortable with purchasing goods online.
What stands in the way of consumers purchasing online goods? The other 49% of mobile shoppers purchase items that are not physical goods. This can include plane tickets, software, music downloads, or anything else that is not physically deliverable.
The hassle of returning items may stand in the way of consumers making mobile purchases. Many online retailers do not have a physical storefront to return items, and many return policies are daunting to consumers. While many app-based purchases from retailers like Target, H&M, Forever 21 and more will accept online purchases for return at their storefront, many app-based purchases come from online-exclusive businesses. Take Amazon, for instance.
Amazon, like other popular online-only retailers, is popularly used for their efficient shipping and return business model. It’s simple, fast, and painless, which is quite possibly the root of their popularity. The 51% of consumers who purchase physical goods will purchase those items because they trust the product is true to advertisement, they trust the company, and they know that if they don’t like the product or have no need for the item, they can easily return it with little effort.
Many businesses are joining that popular online business model, making shipping and returns fast and easy. Perhaps the ease of purchase and return is why $217 billion will be spent by 2019.
Share your thoughts with NMA! What reasons prevent you from making mobile purchases? What are your thoughts on app-based shopping?