LOS ANGELES, May 25, 2017 /PRNewswire/ -- E-commerce has continued to grow in leaps and bounds, giving rise to new start-ups and business enterprises while taking a big bite out of the revenue traditionally generated by old-school brick-and-mortar stores. The latest outgrowth of this trend is the increasing popularity of shoppers who order products with their mobile phones.
Large-scale e-commerce retailers, such as ASOS, Revolve and Head-a-porter, have already launched "m-shops" and invested in new apps that make shopping easier. But is this a trend or just a short-term phenomenon? Time will tell whether mobile e-commerce becomes more popular than PC and laptop shopping.
Either way, e-retailers are being advised to exercise caution when attempting to capture this market. Below are some of the issues involved.
Although mobile sales may provide a significant portion of total revenue, this may not increase.
"In the past three quarters, especially the first quarter of 2017, the amount of mobile purchases for our company rose significantly," said Phoon Lee, an e-commerce specialist for Asia-based ZAFUL (www.zaful.com), which specializes in young women's discount fashions.
According to Lee, mobile sales at ZAFUL jumped by 40 percent compared to the same time last year, a rise of 110 percent. This figure eclipsed the growth rate of traditional PC sales by about 50 percent. M-sales continue to rise at a rate of around 7 percent a month.
"This is somewhat predictable with the popularity of Smartphones and other mobile devices with younger people," added Lee, who noted that customers age 16-25 make up more than 70 percent of ZAFUL's shoppers.
However, companies need to undertake extensive market research about their clientele before plunging into the m-commerce market.
Payment security is still a concern for users
According to a recent MasterCard online shopping survey, 58 percent of respondents indicated that security while making mobile purchases was their most important concern, followed by delivery charges (54 percent) and service charges (43 percent).
For more about this survey, visit: http://bit.ly/2qN9Mu9
ZAFUL has been able to guarantee secure online payments by using the embedded credit card payment method, which is extremely secure.
"At ZAFUL, we see the mobile market as a tremendous opportunity," Lee said, "In the near future, we are expecting mobile sales to account for at least half of our overall revenue. We are increasing support staff accordingly."
ZAFUL, based in Asia, is a discount online fashion outlet that offers women's apparels at discount prices. Items include dresses, tops, swimsuits, accessories, shoes, workout clothing and more. North America provides a large portion of ZAFUL shoppers.
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