Mobile is a central driver of e-commerce traffic
The number of digital shoppers around the world is growing as internet access and adoption increases year on year. Global e-commerce sales stood at $4.9 billion in 2021, with analysts predicting it will reach the $7.4 billion level by 2025. There are many online platforms who are jostling for a share of this lucrative market, including Alibaba. Analysis of this market by MoneyTransfers concludes that the Chinese retail powerhouse accounts for 25% of global e-commerce sales.
Alibaba’s feat stems from the successes of two of its online platforms, Taobao.com and Tmall.com. The company is banking on sales in its vast home market of nearly one billion e-commerce buyers. The company also has a significant footprint in Asia, where e-commerce revenue exceeds $1.1 billion annually. Chinese e-commerce in 2020 contributed up to 38% of the country’s GDP. Again, the country’s e-commerce revenue in 2021 accounted for more than half of the global total, eclipsing the combined US and EU sums. Its population of over 780 million online shoppers is the largest in the world.
Mobile phone use has proven to be a boon for the sector. Market statistics show that smartphones have supported almost 70% of all visits to online retail platforms globally. That said, PC and tablet visits had higher conversion rates. Mobile continues to shape the shopping experiences of many people in many regions. The concept of M-Commerce has spread across Asia, where nations are reaping big profits from their transactions. For example, South Korea owes nearly 65% of its gross online traffic to mobile traffic.
According to Adjust, there are 650 e-commerce apps with at least 5,000 installs per month. E-commerce applications include the following:
- General Retail: Apps selling a wide variety of products or a specific group of products (e.g. pet products)
- Fashion: Apps that only sell clothes, and/or beauty products (cosmetics, jewelry, etc.)
$5.4 billion. This is the number that mobile app marketers spend to acquire users in a highly competitive global market. The United States is in the lead thanks to its size, but mainly because of the high cost of the media. Over 48% app installs in 2021. Between January and July 2021, the number of users who downloaded an e-commerce app grew by 48% overall, with Android gaining 55% and iOS 32%. In 2021, consumers generated 55% more revenue in e-commerce apps compared to 2020 (March-July).
Brazil, India, and Indonesia are the top 3 Android markets, while the United States, Brazil, and Russia lead on iOS. Mobile commerce is leading the way, growing nearly 30% in 2020 to account for 64% of global retail e-commerce sales. eMarketer expects mobile commerce sales to reach nearly $3.2 trillion this year and top $5 trillion in 2025, nearly double the 2020 figure!