Mobile devices have become an integral part of our everyday life. While more than half of US web traffic is via mobile devices, m-commerce (online commerce via mobile devices) is still lagging behind (only 29.1% of transactions). We often compare desktop commerce and mobile commerce without differentiating between types of purchase. Gifting is where the numbers start to look very different.
Mobile e-Commerce is still behind desktop commerce:
October 2015 was a tipping point when for the first time mobile web traffic surpassed desktop web traffic. As of Q4 2016, roughly 56% of web traffic today is conducted from the 198.5 million smartphones in the US.
While our go-to web screen is mobile, what does this mean for the e-commerce space? As of today, although mobile web traffic is higher than desktop, m-commerce still represents a substantially lower, 29.1%, of all online transactions. Mobile commerce conversion rate drops by 67.5% in comparison to desktop. The average order value also drops from $118.59 to $81.27 on mobile devices.
Online commerce decreases significantly when using mobile devices. We purchase less on mobile and are not as comfortable spending when using them.
Mobile commerce skyrockets when sending a gift
What happens when we analyze gift giving which is a subset of general commerce?
When it comes to gifting, our data shows similar stats to general traffic and browsing – around 52% of Jifiti users are on mobile devices and the rest are using desktop computers.
When it comes to the actual purchase numbers, it starts to get interesting.
While with general e-commerce mobile commerce accounts only for 29.1% of purchases, with gifting it is up to 49.1%! In other words, the segmentation of mobile transactions is almost identical to the mobile segment of traffic.
What happens when we analyze gift giving which is a subset of general commerce? Mobile transactions are almost identical to the mobile segment of traffic. Users are more comfortable with completing a transaction on mobile when purchasing a gift.
As mentioned, the mobile conversion rate for general e-commerce is about 67.5% lower than the average desktop conversion rate. Yet with gifting it is only 27.6% lower. What this means is that users are more comfortable with completing a transaction on mobile when purchasing a gift.
And when the average value of purchase on mobile drops by 31.5% for general e-commerce, with gifting it only drops by 6.2% from $49 to $46.
Why does mobile gifting stand out?
We took a look at the general commerce data out there and compared it to our specific gifting data and came to a number of conclusions.
General shopping doesn’t require a reason or a ‘trigger’ – so shoppers will take more time with their decision making before purchasing. With gifting there is a clear ‘trigger’ or purpose for purchasing a gift – usually an event or a holiday. When there is a trigger for a purchase, shoppers tend to make quicker decisions and complete the purchase. It’s almost like marking off a ‘to-do’ on their list.
Mobile devices are considered ‘top of the funnel’ for e-commerce purchases. In other words, they are used to browse and research products before shoppers make a decision. Once they are ready to purchase, they may access a desktop to complete the purchase.
With gifting, the funnel is considerably shorter – gift senders don’t want to spend as much time researching items. They want to make sure it is a thoughtful gift within their budget. The gap between ‘discovery – research – purchase’ is slim when it comes to gifting.
With gifting, the funnel is considerably shorter – gift senders don’t want to spend as much time researching items. The gap between ‘discovery – research – purchase’ is slim.
Small screens makes the purchase flow more challenging especially with regard to entering details such as shipping addresses. By lowering those friction points, such as not requiring a shipping address for the recipient but only an email or cell phone number we are able to cater to mobile users. The checkout flow on the Jifiti platform is seamless and removes the barriers mobile devices usually present over desktop machines.