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Retailers with Shopping Apps Now See Majority of E-Commerce Sales from Mobile

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Apps account for 66% of mobile sales.

For many retailers, mobile traffic equals or exceeds desktop traffic. This is not new. What is new is that mobile sales represent the majority of total e-commerce for brands with successful shopping apps, according to  Criteo’s latest commerce report (Q4 2017)

North America

Smartphone Commerce Transactions in North America increased 13% YoY.

Shoppers in North America remain active on mobile. Advertisers with a shopping app generate 67% of transactions on mobile  services, for retailers who generate sales on both mobile web and in-app.  Overall, when compared to Q4 2016, YoY sales increased by 13%.

Middle East and Africa

In the Middle East and Africa, Smartphone generates the largest share of online transactions for retailers, excluding apps.

The Middle East and Africa may show us the future, where mobile commerce actually dominates retail sales. Only 37% of transactions occurred on desktop. But apps still make for the best conversions as advertisers with a shopping app generate 66% of transactions on mobile devices.

Latin America

Latin America remains the fastest growing region for share of mobile transactions, with a year-over-year increase of 37%.

Though tablet usage has decreased to account for just under 2% of all transactions, those in Latin America are savvy app-users, contributing to app conversion rates that are 3 times higher on app than on mobile web. That’s in line with the trends we’ve seen in Latin America in general – there’s been a 37% increase YoY when it comes to mobile transactions.

Europe

In Europe, transactions on mobile and desktop are split 50-50, with share of transactions completed on smartphones increasing 21% YoY. 

Retailers with a shopping app now generate 44% of their sales on mobile devices. Interestingly, tablet usage is down like in the rest of the world, but still accounts for more than 10% of transactions. Overall, we still saw strong transactional data on smartphones, which increased 21% when compared to Q4 2016.

As mobile commerce—especially in-app transactions—continues to grow, retailers should invest in mobile web and app strategies.

1. Mobile is the majority for retailers with a shopping app

2. Mobile Web Usage Reaches Maturity and Still Growing

Mobile web usage has reached a maturity point, but shoppers rarely stay in one place for long, moving in and out of walled gardens, and are still buying on-the-go, with varying levels of frequency, on all connected devices.

3. Sporting goods and fashion/luxury are the two retail subcategories with the highest share of mobile sales.

4. Combining Intent Lets You See More Shopping Dollars Per Shopper

Average Order Values Are Significantly Higher for Matched Shoppers.

5. Shopping Apps Generate Higher Conversion Rates

In North America, the conversion rate on shopping apps is more than 3 times higher than on mobile web.

6. In most world regions, mobile now accounts for more than 50% of online transactions, and in-app sales dominate.

7. Desktop usage dominates working hours, while mobile wins nights and weekends.

Key Findings

App Opportunity

When retailers prioritize app optimization in addition to mobile web, the performance gains are
substantial.

  • Globally, advertisers saw nearly a 50 percent year-over-year increase of in-app transactions, climbing to 46 percent in the fourth quarter of 2017.
  • In North America, retailers with a shopping app now generate 67 percent of all ecommerce sales on mobile devices. In-app also accounts for 66 percent of mobile transactions for retailers who generate sales on both mobile web and in-app.
  • The conversion rate for shopping apps was 21%, more than three times higher than the standard 6% conversion rate seen on mobile web.

Mobile Growth

Mobile web usage has reached a maturity point, but shoppers rarely stay in one place for long, moving in and out of walled gardens, and are still buying on-the-go, with varying levels of frequency, on all connected devices.

  • Tablet usage declined, with 26.5 percent fewer transactions compared to the year prior.
  • Desktop usage continues to dominate during work hours, but saw a minor slip year-over-year with a 1.1 percent transaction decline.
  • Retail categories with the highest share of mobile sales include sporting goods at (44 percent), fashion/luxury (40 percent), and health/beauty (38 percent).
  • Seasonality drove a slight dip in the number of desktop transactions preceded by a mobile click, as consumers are more active on mobile devices in the summer. In the fourth quarter, 26 percent of all US desktop transactions were preceded by a mobile device click, down 4 percent from the previous quarter.

Shopping Moments

Consumers continue to trade desktop for mobile, and back again, depending on the time and day they are shopping online.

  • Alternatively, optimizing for smartphone and tablet targeting remains critical in the evenings and throughout the weekend.
  • In North America, retailers with a shopping app now generate 67 percent of all ecommerce sales on mobile devices. In-app also accounts for 66 percent of mobile transactions for retailers who generate sales on both mobile web and in-app.
  • The conversion rate for shopping apps was 21%, more than three times higher than the standard 6% conversion rate seen on mobile web.
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