Do Q1 Improvements Make mPayments Ready For Primetime?

In a recent presentation entitled “State of the U.S. Online Retail Economy in Q1 2013,” digital business analytics provider comScore looked at data from a global panel of two million web users who provided its researchers with data via behavioral tracking and custom surveys.

Conducted the week of April 29 and featuring behavioral activity from as recently as March 2013, participating individuals were asked for information regarding their online and offline buying, online advertising exposure, mobile internet usage and transactions to get an accurate picture of the global buying that is taking place on major U.S. eCommerce destinations.

The result was a plethora of data that aims to paint a picture of how the current shopping climate is being affected by technological breakthroughs and recent legislative decisions, and how major retailers are shifting strategies to successfully meet the new challenges posed by a changing market.

eCommerce Sees Double-Digit Gain, But Total Discretionary Spending Lags Behind

Online shopping continues to become more lucrative, as the comScore report indicated that eCommerce spending grew 11 percent during the first quarter of this year. Specifically, retail and travel buying rose by 13 percent and 8 percent from the same period in 2012, respectively, accounting for $50 billion and $28 billion in retail expenditures over the three-month period.

While this may lead retailers to optimistic conclusions, comScore noted that the uptick in eCommerce spending may not have positive implications for the nation’s overall economic outlook. Total discretionary spending increased just 1 percent over the quarter, even though the amount allocated toward eCommerce jumped 11 percent during that time. This, the organization suggests, means the climb in eCommerce spending represents a shift in how consumers are spending rather than proof that the market is improving.

Consumer Sensitivity And eCommerce Behavior

Due to the continuing economic issues faced by many Americans, comScore also took a closer look at the factors that are influencing eCommerce. For instance, free shipping was named as the factor deemed most valuable by online shoppers, garnering 49 percent of the vote from respondents. By comparison, exclusive online deals and the absence of sales taxes were the second and third most important factors when it came to purchasing according to consumers, capturing 26 percent and 17 percent of responses respectively.

Among this section of the report’s major findings were that 54 percent say they would be less likely to purchase online if they had to pay a sales tax on all purchases. More troubling, though, was that fears were more pronounced among frequent online shoppers – defined as those who shop online more than once a week, as 46 percent said they were “very concerned” about the development. This was compared to the 31 percent that shop online less than once every seven days that indicated this perception.

Finally, comScore says shoppers are already making their own adjustments to offset this cost, as transactions that involved sales tax were roughly 20 percent more likely to be made in conjunction with free shipping deals.

Mobile And Multi-Platform Commerce Poised For Primetime

Most notable among comScore’s findings was that mCommerce growth is “significantly outpacing” eCommerce and in-store purchasing, rising by 31 percent since 2012, the report said. Also notable was that while tablet users were more likely to purchase via this device than smartphone users – 37 percent to 20 percent – smartphone spending per buyer was higher – $139 compared to $91.

The organization also says it believes tablet and smartphone ownership is reaching a tipping point. ComScore noted that more than 60 million people now own tablet devices and that 130 million carry smartphones: factors that have caused digital media consumption to double since 2010. As of March 2013, nearly half of all digital engagement with retail properties, the report says, occurs on these devices.

Further, comScore cited specific examples of how companies are leveraging multi-channel experiences into working strategies. For instance, the report highlighted online commerce destination eBay, which it says has engaged its user base through features like well-integrated platforms, easy payments and time-sensitive components. Keys the organization implies other retail outlets would be wise to adopt if current trends continue as seen in its report.

To read more, view comScore’s complete presentation here.