The Netherlands: mobile spending jumps to EUR 1.3 billion in 2013

Wednesday, 16th April 2014

According to this, online consumer spending via smartphones and tablets increased to EUR 1.3 billion in 2013 in Netherlands.

"H2 2013 mobile spending totaled EUR 735 million, which means 13% of the total ecommerce market. Smartphone and tablet sales more than doubled in comparison with the same period in 2012, according to the 2013-2 M-commerce Monitor, the six-monthly research into mobile consumer spending conducted by Blauw Research. The research was conducted in cooperation with Thuiswinkel.org, the association of more than 2,000 online shops in the Netherlands, and was also made possible by iDEAL."

"According to Wijnand Jongen, Director of Thuiswinkel.org, in 2012, m-commerce was worth EUR 560 million, whereas in 2013 it went up to EUR 1.3 billion. The share of products and services acquired via smartphones reached almost 30%, representing nearly EUR 400 million."

"The strong increase in mobile consumer spending is partly due to the fact that more and more people purchase online using their smartphone or tablet. The number of mobile buyers increased to 2.7 million in the last six months of 2013. This is almost twice as compared to 2012."

"In H2 2013, more than 14 million orders were placed through mobile devices, accounting for a growth of 84% compared to H2 2012. Cumulatively, more than 26 million online orders were placed through a smartphone or tablet in 2013. Consumers also make larger or more expensive purchases increasingly often through their mobile devices. On average, consumers spent EUR 52 per order in the last six months of the year, which was 21% more than in 2012. Generally speaking, payment of mobile purchases primarily takes place with iDEAL, just as is the case with other online purchases."

"The same source indicates that most purchases are made through tablets. 7 in 10 consumers order their products and/or services primarily via mobile devices. Almost 75% of mobile spending was made with the use of tablets (€ 532 million). Tablets are especially used at home, often as a replacement of laptops. Nearly all mobile buyers who made their last order on this device did so from their homes (96%). Smartphones are more often used outside the home (such as en route or at work) for mobile shopping (37%)."

"People who buy online using their tablet are more positive about mobile shopping than the ones who use their smartphone. As a result, they make almost half of their online purchases using a mobile device. People who use their smartphone for mobile shopping still make one third of their online orders through a mobile device."

"It is expected that mobile spending will continue to increase significantly to a turnover of around EUR 2 billion in 2014. This amounts to about 17% of the total online shopping market."

Facebook is about to get into the "e-money" game

Tuesday, 15th April 2014

According to this Facebook is waiting for Irish regulatory approval for providing financial services in the form of remittances and electronic money.

"The approval from the Central Bank would enable the social network to offer consumers the possibility to store money on Facebook and use it to pay and exchange money with others, according to several people involved in the process, cited by the same source. By becoming an “e-money” institution, Facebook would issue units of stored monetary value that represent a claim against the company. This e-money would be valid throughout Europe via a process known as “passporting”."

"The money transfer project signals a strategic shift for the company, which makes most of its money from advertising. It also comes as other internet groups in particular, China’s Tencent and Alibaba, race to turn their websites into mobile payment platforms."

"Facebook has also discussed potential partnerships with companies that provide international money transfer services online and via smartphones. These include TransferWise, Moni Technologies and Azimo."

"In 2013, the company facilitated USD 2.1 billion worth of transactions, almost exclusively from games, according to documents filed with the Securities and Exchange Commission. Facebook takes a fee of up to 30% for such payments, and these fees account for about 10% of its revenues."

Social E-Commerce - disruption by Blucarat

Tuesday, 15th April 2014

"E-commerce might be convenient, but there’s nothing quite like a mall day with friends. To unlock sales growth online, the founder of a new startup hopes to recreate the group shopping experience by better integrating social media."

"Platforms like Facebook and Pinterest can be a powerful driver of purchases. Average orders made by users coming from these sites can range from $40-$80 apiece, according to a recent study by research firm Monetate. Still, conversion rates from social lag behind email and web search."

Average Order Value By Social Referrer and Conversion Rates by Source
Average Order Value By Social Referrer and Conversion Rates by Source
Source: Monetate, Ecommerce Quarterly, 2013

"Major retailers have taken notice and last year eBay and Amazon were among the first to embed their own social e-commerce tools directly into their websites. Soon after, other big names followed, such as QVC, Sears, Nike and Sephora. But it can be harder for small shops to compete since big names have the manpower to build custom social e-commerce experiences."

"Enter Blucarat. Launched last year, this patent-pending platform activates social engagement between shoppers directly on retailers’ websites, so users can connect with friends, sharing photos and shopping advice, chatting and viewing trending products – all in real-time, right on the retailer’s website."

"Companies upload Blucarat’s ‘Social Bar,’ a toolbar, to existing web layouts. The tool was designed to be an easily installable enterprise solution for niche, startup or smaller retailers, says Tom Kwon, the company’s chief executive officer and founder."

"Users on sites with Blucarat, on the other hand, can always go shopping with their brutally-honest-but-trusted shopping buddies online. If they aren’t logged on, they can always turn to a fellow-shopper in the same section for an opinion. Shoppers can also virtually stroll through an online store’s ‘Trending Products’ section and find what other shoppers are commenting on and viewing most and why."

"The tool isn’t a fit for every retail category online. “Blucarat isn’t for sellers of milk and eggs,” says Kwon. Still, categories like electronics, camping gear, DIY home improvement products, health and beauty seem to be where social comments matter most.  “If the brand has a product where there are multiple ways to use that product with various combinations, then that’s where opinions matter.”"

More info here.

Can't read, won't buy - why English is not enough to bring you global e-commerce success

Tuesday, 15th April 2014

According to E-commerce Facts, 87% of consumers who can't read English don't buy products or services at English-language websites.

"This was revealed in Common Sense Advisory's recent report based on a survey of 3,002 consumers in non-English-speaking countries, including Brazil, China, Egypt, France, Germany, Indonesia, Japan, Russia, Spain, and Turkey. We conducted this 10-nation poll in the official language of each country. The report is titled:  "Can't Read, Won't Buy," updates our oft-cited 2006 report on global consumer buying preferences."

"These findings contradict the longstanding assumption that many people on the web feel comfortable enough using English to buy products and services.
55% of the 3,002 respondents buy only at websites where information is presented in their language. For those with limited English, the preference for mother-tongue purchases increases to 80% or more. Key findings include:

  • 60 percent  rarely or never buy at English-language sites.
  • 56 percent either spend more time on sites in their own language than they do in English -- or boycott English-language URLs altogether.
  • Local-language preferences vary by country. The percentage of those who buy only at local-language websites jumps to more than 70percent of consumers in Japan. Other countries with more than half of survey-takers favoring purchases at properties in their language include France (61percent), Turkey (61percent), Germany (58percent), and China (54percent).
  • Global brands can trump language, causing prospects to choose such products over one with information in their native tongue. Nationalities that are most infatuated with global brands despite the language hurdle are the Egyptians and Chinese. Those least won over are the Germans, Turks, and Japanese."

Turkey: online sales up by 40% in 2013

Friday, 11th April 2014

According to this, in 2013, online sales in Turkey jumped 40% as compared to 2012, with over 50,000 ecommerce portals operating in the country.

"The findings of Turkey B2C Ecommerce Report 2014 indicate that the boost in ecommerce was led by the growing internet and mobile penetration, as well as developed logistics and high bank card use. Results show that 50% of the Turkish population use the internet, the highest percentage registered in a European country, falling on second place only concerning the amount of hours spent online (30 hours per user)."

"Research also reveals that internet users in Turkey are the youngest in Europe, with an increased interest in B2C ecommerce websites. A quarter of all internet users shop online, a share that grew slightly from 2012. The percentage of female internet users is growing, even though there are still more male online shoppers than female. Credit card is the preferred payment method in B2C ecommerce transactions."

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