M-Commerce is Less Than 2% of Sales
According to the annual Q1 Merchant Survey carried out by the DRF, the majority of retailers currently place mobile commerce quite low on their list of priorities this year.
For the last couple of years, the mobile commerce industry has borne a great deal of scrutiny, with many people waiting expectantly for the channel to boom. While m-commerce has grown rapidly in that time, it is still a long way from maturity. According to a new survey from the Direct Response Forum (DRF), 63 percent of retailers have found that mobile accounts for less than two percent of their business.
The annual Q1 Merchant Survey also found that only 17 percent of retailers have seen mobile sales rise above 10 percent.
“It’s important to realise that mobile commerce is still in its infancy,” said DRF Executive Chair, Chantal Gaspie in a press release. “Mobile commerce will be important but the volume is just not there yet to deploy resources away from other important initiatives.”
The DRF gathered 110 responses to its Q1 survey from some of the largest ‘card not present’ (CNP) merchants in the world. These merchants were surveyed on a range of topics, and mobile commerce was not found to be very high on their priorities list.
54 percent of the respondents said they were even unable to tell whether their mobile sales derived from new or returning customers. Instead, these merchants said they intended to invest more time and resources into payment processing issues, fees and implementing international payment strategies, rather than m-commerce.
“There are larger opportunities for CNP merchants to capitalise on now, including international payment strategies and reduced fees which can contribute larger and more immediate returns on investment for their organisations,” Gaspie said.
It seems that, while many online retailers maintain high hopes for the mobile sales market, they aren’t waiting with baited breath and have instead turned to larger issues at hand. That being said, there are surely some exceptions to the rule that are focussing a large amount of energy on the mobile space.
What’s your m-commerce strategy this year?