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Happy Friday, everyone! It’s almost June and with schools soon coming up on their long break, it will be time before we know it to prep for back to school and then the holiday season. This week’s top ecommerce news shines light on which ecommerce shopping trends will make or break successful stores in the coming months, including why video is so essential, how buy buttons are taking over and why you need to have a mobile site that loads in under a second in order to win over a mobile shopping audience (hint: they spend more than desktop users!).
Below is the top ecommerce news you need to know.
Mary Meeker Report Predicts Rise of Buy Buttons, Ecommerce on Any Site
The technology industry makes an annual habit of patiently waiting for and then voraciously talking about Mary Meeker’s State of the Internet Report. Meeker, a former Wall Street analyst turned venture capitalist, publishes an influential annual assessment of the internet economy. Not much of what appears in this year’s annual report is essentially shocking to anyone with an internet connection and some time to kill, but thanks to her analytical prowess and ability to turn raw numbers into truly striking charts and graphs, her presentation is always eagerly awaited.
This past week, Meeker showcased her findings for the state of the internet. For one, some 39% of the world population now has connection, whereas two decades ago, in 1995, only .06% had access. Mobile is increasingly popular and internet company valuations are continuously on the rise, likely thanks to the hoards of user data they collect –– now serving as capital for the companies themselves.
In all, both internet use and adoption is slowing down, except for in a few key areas, which we will cover in a moment. First, why is any of this information valuable to ecommerce? Easy, because at least seven of the top 15 internet companies in the world are ecommerce companies. Some could also argue that Facebook and Google have their hands in the ecommerce industry as well, bringing that number up to nine of the top 15 internet companies in the world.
Google Confirms Buy Button Launch, “It’s Going to be Imminent”
Speaking of mobile and buy buttons, Google has officially confirmed that the company plans to add “buy” buttons to pages showing search results for products available for online purchase. The buttons, which will take shoppers to another Google product page where they can actually make a purchase, will first appear on searches performed on mobile devices.
Google’s Chief Business Officer, Omid Kordestani, said on stage at the Code Conference, the same conference at which Mary Meeker presented her findings, that “There’s going to be a buy button. It’s going to be imminent.”
News of the buy button was reported by the Wall Street Journal earlier this month, with Macy’s among the retailers in discussions with Google to join the launch. The addition of buy buttons on mobile Google Shopping ads could potentially transform the function of the engine from a site referrer into a full-blown ecommerce player.
According to Search Engine Land, this move by Google is controversial, with many retailers concerned Google’s insertion into the buying process will impede customer relationships and give Google access to valuable sales data. On the other hand, this would increase Google’s ability to compete with ecommerce giants like Amazon, which introduced a physical one-click button earlier this year (Dash), and eBay.
To note, companies like Amazon and eBay typically share the proceeds from a sale with retailers and it seems as though Google would also do the same. As Re/Code’s Jason Del Rey wrote, “A nagging issue for online retailers paying for PLAs is conversion — getting someone who clicked on a product image to complete the purchase. Google is positioning the experiment as a way to help retailers fix that by reducing the number of steps between viewing the ad and completing an order. It arrives shortly after Google introduced a series of ad enhancements inside mobile search in a bid to claim more of the transactions and ad dollars that have gravitated to rivals like Amazon and Facebook.”
In all, it looks as though the internet’s favorite search engine will soon also be a curated online store of sorts.
Mobile Shoppers Outspend Desktop, Expect Immediate Page Load Times
Of course, mobile doesn’t really need Google’s help to outspend desktop sales. In fact, in another report released this week by cloud services provider Akamai, mobile revenue is already surpassing that of desktop.
Indeed, both mobile phone and tablet annual spending per user surpass the $2,000 mark, while desktop sales remain in the $1,000.
Other interesting statistics from the report include:
- 15% of consumers making a purchase once a week use desktop
- 35% of consumers making a purchase once a week use mobile
- 35% of consumers making a purchase once a week use tablet
- 50% of shoppers will abandon cart because of slow load times, and 1 in 5 will never return
- 76% of consumers prefer to shop on desktop, and 85% consider it faster
- 9% of consumers prefer to shop on mobile, and 76% consider it slower
- 40% of consumers have made a mobile purchase in the last 3 months, compared to just 16% doing so in 2009
- 18% of consumers expect immediate page load in regards to site speed
For ecommerce sites, these metrics point to one thing: have a mobile site and make it fast in order to increase sales and win over customers.
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