Mobile Apps Contribute Mere 4% Of e-Commerce Revenue For e-Stores [Report]

In spite of explosive growth in mobile space, businesses are yet to realize Mobile apps’ contribution in e-Commerce revenue. Still, only 4% of total e-Commerce revenue is being generated by Mobile apps for businesses that own and maintain their e-Stores. Interestingly, all combined mobile channels generated only 5% of total e-commerce revenue through m-commerce in 2012 globally.

According to the latest Global M-Commerce status check Report only 19% of total e-Stores are able to generate 25% of their total e-Commerce via mobile channels. The study was conducted over 600 renowned m-commerce companies in Q3 2012.

The figures are enough to surprise as the penetration of Smartphone is all time high in recent years. Around 1 Billion new Smartphones are expected to be shipped in 2013, which will tally the total number smartphones available in the market around 2 Billion. The commendable growth of 100% in Smartphone adoption will directly influence mobile app market. Apple iOS and Google Android mobile OS are controlling 88.80% of smartphone market together. And, each of it is having close to 800,000 unique apps on respective app stores.

M-commerce revenue 2012

Besides, over all mobile devices have significant influence over global internet traffic. Nearly 10% of global internet traffic is being originated from mobile devices alone. Unfortunately, the current state of Smartphone adoption and in two biggest mobile and Internet markets – India and China – disappoints largely.

Here are few important highlights of the Global M-Commerce Status Check Report:

  • Around 50% of e-Stores recorded less than 10% of their e-commerce revenue from mobile apps in 2012
  • e-Stores, generating more than 25% of e-commerce revenue from mobile channels, will grow by another 10% to reach 27.5% market share.
  • Nearly 15% e-Stores believe that in next 5 years, they will record atleast 50% of their e-Commerce sales coming from m-commerce.
  • There is a huge gap between successful m-commerce app and long tale of such apps; while the farther ones are downloaded more than 2 Million times, the later ones receives only few thousands of downloads.

The massive adoption of Android has made users more data hungry and this could be easily transformed into the customers. However, the geographically categorized mobile OS market condition is pushing e-Stores to prioritize their app platform based upon their products/services market reach. However, with the emergence of Windows Phone 8 OS and re-birth of Blackberry 10 OS are poised to create a noticeable shift in global m-commerce industry this year.

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