Retailers are being warned in no uncertain terms about the importance of optimizing their e-Commerce experiences, and this necessity is only going to grow more urgent as the digital “pie” continues to expand. The digital commerce market is set to grow more than 60% by the end of the decade, rising from $4.9 trillion in 2015 to more than $8 trillion by 2020, according to Juniper Research.
Online retail events such as Cyber Monday and China’s Singles Day have continued to set records that chart the market’s increase, while Amazon’s Prime Day in 2015 reeled in more revenues than its Black Friday promotions from the prior year, despite mixed reviews from consumers.
The report, titled: Digital Commerce: Key Trends, Sectors & Forecasts 2016-2020, revealed that the three biggest contributors to digital commerce revenues over this time period will be:
Remote digital goods; and
Remote physical goods.
Mobile Driving Digital Commerce Boom
Mobile is having an effect on how much these contributors will factor into the expansion of digital commerce. In the case of digital banking, given greater adoption of mobile device units, especially smartphones and tablets, most digital banking service providers are either producing their own apps or having them constructed by third-party vendors.
The report also indicated that retailers of physical goods see an uplift in basket size (also known as average transaction size) as a result of replacing cash with a mobile payment method. This result stems from increased consumer confidence in, and willingness to engage with, the mobile device as both a content browsing and payment mechanism. For example, the total value of mobile NFC POS payments is projected to increase by more than 400% between 2016 and 2020.