Mcommerce (mobile commerce) will account for the majority of ecommerce by 2018, according to new data from Forrester. Specifically, the research firm says mobile transactions will account for 54 percent of all online retail sales, or a whopping $293 billion, just four years from now. By the end of 2014 alone, Forrester expects tablet and smartphone sales to hit $114 billion, with media, apparel and consumer electronics the hottest mcommerce arenas.
It’s no surprise that even though smartphone owners outnumber tablet owners by about two to one, tablets account for most mcommerce sales, and will continue to do so. In 2018, Forrester projects, $219 billion of mcommerce sales will be on tablets, compared to $74 billion on smartphones.
That makes mcommerce the hottest area of U.S. online retail sales, which are still growing, but more slowly. Forrester projects that by 2018, ecommerce will account for about 11 percent of overall retail sales; it currently accounts for about 9%.
What’s driving mcommerce? Several trends:
“Mobile moments”: Consumers are going online more often than ever and in more diverse environments, creating new opportunities for shopping, either planned purchases or impulse buys.
Gen Y. The 32.5 million members of Gen Y spent more online than any other demographic in the last three months, Forrester says.
The growth of mobile. 200 million Americans own smartphones and 100 million own tablets, up from 62 million and 8 million, respectively, just four years ago.
So far mcommerce acceptance among consumers is far from widespread. Forrester estimates that just 38 percent of smartphone owners and 31 percent of tablet owners will purchase on those devices this year. However, the company expects that by 2018, 55 percent of smartphone owners and 61 percent of tablet owners will buy on their devices. And, of course, mcommerce acceptance varies depending on what you sell and who your customers are. Already, up to 20 percent of sales at some retailers are made via mobile devices.
What’s the takeaway for small businesses hoping to capture mobile sales?
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Rieva Lesonsky is CEO of GrowBiz Media, a media and custom content company focusing on small business and entrepreneurship. Email Rieva at email@example.com, follow her on Google+ and Twitter.com/Rieva, and visit her website, SmallBizDaily.com, to get the scoop on business trends and sign up for Rieva’s free TrendCast reports.