Thursday, November 21, 2024

Mobile Devices Beating Desktops As Primary Way To Shop, Adobe Reports

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The desktop era of ecommerce is coming to an end, according to the latest Adobe Analytics data. Going forward, the majority of online purchases are expected to be made on a smartphone or other mobile device.

In a report released today, Adobe said there was consistent double-digit growth in mobile spending during the first months of this year. Adobe is forecasting that mobile spending will eclipse desktop during the holiday season and into 2025.

“At this trajectory, Adobe sees a tipping point in the months ahead,” the report states.

Over $280 billion spent using mobile devices

Adobe expects mobile devices to drive 53% of sales during the upcoming holiday season. During the first seven months of this year, through the end of July, mobile sales averaged 47.7% and amounted to $280.4 billion in spending, up 10.2% over the same period a year ago.

During the holiday season of 2020, mobile purchases made up only 40% of ecommerce spend. That percentage has increased steadily every year since 2020.

Ecommerce platform Shopify reported last month that mobile commerce quickly is becoming the preferred shopping channel for consumers and noted that brands increasingly are relying on mobile applications and social media sites to drive sales.

Salesforce, in a report in April on its The 360 Blog, said greater use of mobile wallets, up 46% year-over-year, has made the mobile checkout experience easier and has contributed to the increase in mobile sales.

Sales events boost mobile spending

Adobe noted that promotional events, including Prime Day, Fourth of July, and Memorial Day sales, have been key drivers in boosting mobile shopping. Mobile sales exceeded desktop consistently during sales events, averaging 51% of sales per event.

Groceries, cosmetics and apparel have also fueled the growth of mobile shopping, according to Adobe. In July, 68.2% of online grocery sales were made through a mobile device. Mobile has been the dominant channel in the grocery category since April, 2021.

In the personal care category, which includes cosmetics, mobile accounted for what Adobe called a “staggering” 77% of online sales in July. Mobile had a 60.8% share of apparel online sales in July.

Categories such as electronics and home improvement, which often involve bigger-ticket purchases, have seen less of a shift to mobile, according to Adobe. In July the mobile share in electronics was 21.3% and it was 33.3% in home improvement.

“Consumers have embraced mobile shopping for purchases that are more frequent and lower in price, but we expect larger purchases will begin to shift towards smaller screens as well,” said Vivek Pandya, lead analyst, Adobe Digital Insights, in a statement accompanying the release of today’s report.

Basket sizes – the sum of purchases made in a shopping trip or online order – typically are 32 percent smaller on mobile than on desktop, according to Adobe. That tendency use mobile for smaller purchases “represents both a challenge and opportunity for brands to refine mobile experiences and close the gap to drive revenues,” Pandya said.

Big retailers invest in mobile commerce tech

Retailers with $1 billion or more in annual revenue have seen more of a shift to mobile shopping, with mobile capturing a monthy average share of 52.8%, according to Adobe.

Major retailers such as Walmart and Target have invested heavily in recent years in tech that enables customers to do more and more with their phones, from arranging for curbside pickup of purchases, to getting AI-generated shopping lists on their phones.

For smaller retailers – those with annual revenue of $10 million to $100 million – the monthly average share for mobile is 43%. Adobe noted that this represents a growth opportunity for smaller retailers because mobile drives more impulse shopping.

Adobe Analytics data is based on analysis of online transactions, covering over one trillion visits to U.S retail sites, 100 million SKUs (stock-keeping-units) and 18 product categories.

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