Nearly Half of Merchants Still Don’t Offer Dedicated Mobile Websites
You have heard it before and you will hear it again: mobile is on fire.* However, note the asterisk attached to that statement (which we will address shortly).
But first, it is true that:
- In 2016, mobile traffic surpassed desktop traffic
- More searches are done on mobile devices than on desktops
- US consumers spend nearly five hours a day on their mobile devices
- 62% of smartphone users made an online purchase with their mobile device in the past 180 days
- 10 billion mobile connected devices are currently in use worldwide and 125 million US consumers own smart phones
However, according to the Mobile Payments & Fraud: 2017 Report, less than half of merchants had efforts underway to deploy a dedicated mobile website. Less than half. At the same time, 93% of those same merchants said the mobile channel was “Very Important” or “Somewhat Important” for revenue. How to explain this seeming contradiction?
To start with, 45% of merchants in the Mobile Payments & Fraud: 2017 Report said the “cost of implementing new technology” was an obstacle to greater mobile adoption, while 44% also listed the lack of required “IT resources” as an obstacle.
But with all these consumers using all these mobile devices seemingly all the time, can online businesses really afford NOT to offer their shoppers a better mobile experience in the form of a dedicated mobile website? The answer is “for now, probably.”
Two striking statistics demonstrate why this is the case and explain the * used earlier:
- More than 90% of mobile time is spent in apps like social media and messaging (e.g., Facebook, etc.), entertainment (e.g., YouTube, Hulu, etc.), and gaming (e.g., Pokemon GO, Candy Crush, etc.). That means less than 10% of mobile time is left for shopping, searching for products, purchasing, etc.
- While mobile leads in traffic, desktop still dominates in purchasing with a remarkable 81% share of digital commerce spending (vs. 19% for mobile)
The chart shows the much lower conversion rates for the mobile channel:
|Conversion Rates by Platform||Q4, 2016|
|Windows Phone (mobile)||1.16%|
Of course, a devil’s advocate might argue that the reason mobile’s share of spending and mobile conversion rates are low is due to the lack of dedicated mobile websites that make mobile commerce faster, easier, and more optimized. What’s more, this person might further suggest that there could be a competitive advantage to be gained by offering customers a dedicated mobile site, and that strong increases in mobile revenue might be possible.
Regardless of whether you agree or disagree with those thoughts, it’s clear that enhancing mobile commerce capabilities presents online businesses with new challenges in addition to new opportunities. For example, 34% of online businesses in the Mobile Payments & Fraud: 2017 Report said “addressing how to manage fraud risk” was the third biggest obstacle to mobile adoption.
Fortunately, there is easy and affordable answer for that particular challenge:
Enterprise-class fraud solutions like Kount Complete provide end-to-end fraud prevention platforms that fully integrate mobile commerce into a simple, unified system, while at the same time offering mobile-specific capabilities and reporting to make it easier for merchants to boost mobile sales, beat mobile fraud, and minimize mobile fraud mitigation expenses.
Discover more about the growing importance of mobile commerce and its impact on e-commerce and fraud prevention. Download the eBook: "The Download on Mobile App Fraud" to learn about fraud threats for mobile apps, mobile checkout abandonment issues, and how to increase mobile conversions.