Mobile will shape the future of E-Commerce

E-commerce is still booming. In the 3rd quarter of 2016, online retail sales increased to 8.4% from 7.4% (in the same period in 2015) according to data from the US Department of Commerce. E-commerce sales are expected to reach $100 billion by the end of 2016 in the US, an improvement over the $97.3 billion in online sales recorded at the end of last year.

Although the annual growth rate of the e-commerce industry has slowed to about 15% year-on-year (from 20% per year recorded a decade ago), experts predict that e-commerce revenue will reach $4 trillion by 2020 , which will be equivalent to approximately 15% of total retail sales.

But what will motivate this growth? The following trends provide insight into the evolution of the sector in general and help outline the future of e-commerce.

Mobile is the key to growth

Smartphones accounted for 29.9% of all e-commerce traffic in 2014 in the US, but only 11.2% of total revenue. In comparison, desktop e-commerce traffic accounted for 55.7% of total traffic and brought in 75.1% of total revenue. This may indicate that users tend to do market research on their mobile phones when out and about and then, if they remember, complete their purchases on their desktop computers.

As a result we see many abandoned shopping carts that never convert into sales.

The poor mobile checkout-to-checkout experience is one of the main reasons for the disparity in e-commerce sales revenue between mobile and desktop . However, with the adoption of responsive design and the development of mobile applications for mobile phones, mobile will play a key role in the development of e-commerce. Improving the user experience is what will lead to increased sales through mobile apps. Of course, the use of smart mobile devices can also be used in retail channels, either as a payment channel (mobile wallet), or as a user identification and payment mechanism (Amazon Go), or as a recipient of promotional actions in retail stores. So smart mobile devices are now the ultimate multi-tool for retail companies.

Cross-Channel Marketing

Digital media is unlike anything we’ve seen so far. Compared to traditional print media, digital media opens up a new world of possibilities for retailers that improve message delivery and marketing effectiveness.

In fact, companies with clear cross-channel strategies to optimize the customer experience achieve a 91% higher year-over-year increase in customer retention, on average, than companies that do not implement cross-channel – channel) strategies.

One of the key elements for the development of e-commerce is the use of more than one digital medium to successfully convey the “message”. Users purchase products and services on their smartphones, tablets, and desktop computers, so businesses with a presence across these channels will benefit significantly.

SOFTWeb COMBO SOLUTION for Capsis hotels

SOFTWeb has developed for Capsis hotels personalized applications on iOS & Android, as well as the official website. Capsis hotels using the combo solution (website & mobile app), use multiple channels to interact with their customers from a holistic point of view to ensure that they have a wonderful experience with the brand as a whole, on every channel. The focus is on building a stronger relationship between customers and the brand.

Capsis Hotels website
http://www.capsishotels.gr/el/

Mobile applications of Capsis Hotels on iOS & Android
https://itunes.apple.com/gr/app/capsis-hotels/id1070129574?mt=8
https://play.google.com/store/apps/details?id=gr.softweb.capsis&hl=el

Innovative Technologies

Technologies such as Augmented Reality will also have a significant impact on the online shopping experience in the coming years. Imagine trying on a pair of sunglasses virtually, without actually wearing them. Such innovative technologies will have a huge impact on e-commerce in the near future.

GLOW Magazine – mobile application with Augmented Reality.

SOFTWeb has developed for the magazine GLOW http://glow.gr/ the personalized applications with AR functionality on iOS & Android. By using the camera through the application we can scan various pages of the magazine and a hyperlink will automatically appear, which can be a transition to an e-shop, advertising campaign, video, etc.
https://play.google.com/store/apps/details?id=gr.softweb.glow
https://itunes.apple.com/gb/app/glow-magazine/id1120705422?mt=8

SOFTWeb an innovative and insightful IT company with web & mobile solutions, has been investing and specializing in the field of mobile applications for 8 years now. It has created the innovative and award winning PocketWarp technology. The constant presence of the company in technological events abroad constantly enriches it with collaborations and market trends as well as the adoption of new technologies.

For more technological news and information, stay tuned to our website www.softweb.gr.
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