Juniper predicts $1.7 trillion in eRetail sales in 2015
Juniper Research predicts that the full throttled arrival of social media giants at the electronic cash register will drive global eRetail sales to $1.7 trillion this year, up over 17 per cent on last year.
According to the company recent growth has also been buoyed by factors such as public Wi-Fi deployments and 4G rollout.
The new research, Mobile & Online Purchases: Cards, Carrier Billing & Third Party Payment Platforms 2015-2020, says that players such as Twitter, Facebook, Pinterest and Instagram have already launched ‘buy’ buttons from their mobile apps and the author’s suggest that the social networks are likely to enhance their sales prospects through strategic retailer partnerships, such as the one that Twitter has with Amazon.
Among the other findings of the research;
- Smartphones will account for more than 40% of eRetail transactions by 2020.
- While carrier billing should provide content providers with a key mechanism for monetising digital content, its use for physical goods purchase is likely to be limited by comparatively higher share of revenues demanded by network operators and billing platforms.
In-store and Online Integration ‘Critical’
Juniper says that online retailers are increasingly seeking to reduce time-to-consumer by launching same-day delivery, while ‘bricks and mortar’ stores now widely offered next-day in-store collection – often charging a premium for this option.
However, there is a cautionary note/ Retailers need to deliver a consistency of message, branding and shopping experience across all channels. The researcher say that integration between in-store and online is also critical if the retailers want to maximise the extent to which that can identify a unique individual’s omnichannel shopping habits.
According to research author Windsor Holden (pictured above) , ‘The key is to ensure that consumers are allowed to choose their own path to purchase rather than have it effectively mandated by channel limitations.’