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WHAT IS THE ROLE OF M-COMMERCE IN RETAIL SALES?

The Definitive Guide to Omnichannel Real Estate

M-commerce is the share of online purchases that are made via mobile devices, which include tablets, smartphones and other portable technology like smartwatches. M-commerce is increasing at a rapid pace and is expected to account for a majority of online sales by 2021, reflecting both consumers’ changing habits and retailers’ increased investment in mobile platforms.

M-commerce to account for majority of e-commerce sales by 2021

Figure 1: M-Commerce Total Sales and Share of E-Commerce


Source: U.S. Census, eMarketer, 2018.

M-commerce sales grew 276% from 2013 to 2017 and are expected to rise another 170% by 2021. This rapid growth will bring m-commerce sales above those of computer sales and account for nearly 54% of online retail sales by 2021.

Figure 2: M-commerce Sales by Device

Source: eMarketer, 2018.

Growth in m-commerce sales is largely a result of a rapid rise in spending via smartphones. As shown in Figure 2, purchases made via smartphones accounted for 66% of m-commerce sales in 2017 and are expected to rise to 82% by 2021. Though sales on tablets and other mobile devices are also expected to increase, the clear trend is toward the use of smartphones for mobile purchases.

Consumers and m-commerce


Figure 3: % of U.S. Adults Who Own Cellphones and Smartphones

Source: Pew Research Center, 2018.

The rise in mobile sales is no surprise, given the continued increase in smartphone use across the U.S. According to the Pew Research Center, 95% of U.S. adults own cellphones and 77% own smartphones. Increased access to both mobile devices and Wi-Fi are facilitating the shift to mobile shopping and fundamentally changing consumer shopping habits.

Retailers and m-commerce

Alongside changes in technology and consumer shopping habits, retailers’ investments in mobile channels are contributing significantly to m-commerce growth. From marketing and social media to apps and mobile-friendly websites, retailers across categories are implementing strategies to reach consumers via their phones. Though these investments are clearly driven by consumer demand, there is another incentive to pushing mobile: data. By engaging in loyalty programs, social media or retailer apps, consumers are sharing a wealth of information about their profiles and shopping habits. This, in turn, enables retailers to better understand their consumers and tailor products and offers to individual shoppers.

Related

WHAT IS OMNICHANNEL RETAILING?

WHAT ARE THE BIGGEST CHALLENGES OMNICHANNEL POSES TO RETAILERS?

WHAT OPPORTUNITIES DOES E-COMMERCE OFFER RETAILERS? 

REVERSE LOGISTICS: PROBLEMS AND OPPORTUNITIES

WHAT IS THE LAST MILE?

WHAT IS AN OMNICHANNEL CONSUMER?

HOW DOES ONLINE SPENDING VARY BY GENERATION?

DO CONSUMERS REALLY PREFER SHOPPING ONLINE?

HOW DOES E-COMMERCE VARY BY CATEGORY?                                   

HOW HIGH WILL E-COMMERCE SALES GO?

WHAT IS E-COMMERCE'S SHARE OF OVERALL RETAIL SALES?

WHAT IS THE ROLE OF M-COMMERCE IN RETAIL SALES?            

HOW ARE RETAILERS ADAPTING STORES TO OMNICHANNEL?

HOW ARE MALLS ADAPTING TO OMNICHANNEL?

WHAT IS THE IMPACT OF E-COMMERCE ON INDUSTRIAL REAL ESTATE?

HOW ARE OMNICHANNEL RETAILERS USING POP-UPS?                

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