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Thursday, 6 December 2018

Online holiday sales, smartphone shopping

‘Tis the season to be shopping…online: Sneaking office breaks to browse holiday prices on your phone? You’re not alone. Online holiday sales are expected to hit nearly USD 125 bn in 2018 with smartphones predicted to drive nearly half of online shopping traffic, according to Adobe Analytics, which measures transactions for 80 of the top 100 internet retailers. Smartphone traffic accounted for 48.3% of visits to retailers’ websites and apps while desktops weighed in at 42.9% and tablets at 8.8%. Holiday shoppers have racked up a total of USD 1 bn on Thanksgiving Day using smartphones, and more than USD 2 bn on Black Friday.

Malls are investing in their online real estate: This is partly a result of increased consumer purchases online. But a much larger factor is major retailers investing in improving their mobile apps ahead of the holiday season. This investment is driven in part by pressure from Amazon signing up more than 100 mn US Prime members eligible for perks in the Amazon app. Many retailers are attempting to integrate the ‘in-store experience’ with their app or website. For example, Walmart’s app includes maps of each store that allow shoppers to plan their journey in advance or locate a specific deal or item in-store. Macy’s app includes an augmented reality tool that allows users to see furniture in their homes and Target’s latest updates merge its loyalty program, Cartwheel, with its main shopping app.

More like online window shopping: Though browsing traffic from smartphones has increased, it accounts for just 27.2% of revenue. This is up from 11.6% the year before but the relatively low percentage suggests that consumers are using their phones to browse and completing their purchase on a desktop.

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