Research Shows Smartphones are Quickly Accelerating Growth of Online Sales

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Perth web development company Spanky Media explains the newest findings on how smartphones are generating more online sales, what this means to their clients, and how savvy businesses can take advantage of these developments in the online retail market.

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It is more important than ever for businesses to provide a strong online presence. It’s not as simple as slapping up a small website with a phone number anymore, and expecting it to generate a flood of phone calls.

According to a report by international research firm Frost & Sullivan, consumers will spend $26.9 billion shopping online by 2016. Compared to a projected $16 billion in 2012, this represents an increase of 68% in the next three years. In addition, 57% of those who shop online have used their smartphones to increase their expenditures.

The report cites the same reasons that previous reports have for online sales growth, such as convenience, faster delivery, and lower prices, but also gives a lot of the credit to the number of people now using smartphones to shop.

According to Phil Harpur, senior researcher for Frost & Sullivan, “One thing that’s stood out to me is mobile usage.” He went on to say that, contrary to the steady growth of the first seven years of online shopping, the last three years have recorded what he called a “significant acceleration” of online purchases.

By the numbers, 55% of online shoppers cited lower prices, while 15% said they don’t like crowds and waiting in line, and 11% said they could find products easier online. 88% of those polled said they plan to spend as much or more this year than last year. 75% of online buyers combine to send 45% of their spending overseas.

In Australia’s 15 to 65 age demographic, 62% own a smartphone, and over half of those say that they have used a smartphone or tablet to shop online in the last year. Many also said they use apps to scan barcodes and compare prices while shopping in local stores. A somewhat surprising element here is that the 15 to 25 age demographic cited comparison shopping as their most important reason for shopping online.

This carries negative implications for traditional brick and mortar stores, but constitutes good news for those who are savvy enough to incorporate online sales, both from computers and mobile devices, into their businesses.

According to Kirk O’Connor, Director of Development for Spanky Media, “It is more important than ever for businesses to provide a strong online presence. It’s not as simple as slapping up a small website with a phone number anymore, and expecting it to generate a flood of phone calls.”

O’Connor went on to say, “Every business, large or small, is leaving a lot of money on the table if they don’t sell their products or services online. If a business doesn’t make it easy for their customers to buy online, both from computers or mobile devices, it will lose revenue to those businesses that do make it easy for customers to buy their products.”

According to industry experts, the increase in mobile devices being used to make purchases has also changed website design. To fully serve its customers, a business has to have a website that is optimised for use on a smartphone. It has to load faster, and it has to be easy enough for someone on a smartphone to navigate without becoming frustrated and looking elsewhere.

Spanky Media, located in Perth, is a web development company which specialises in mobile website development, WordPress development, web design, Facebook brand pages, and other aspects of website development. They produce fully-optimised websites for computers, tablets, and smartphones.

More information is available at their website: http://spankymedia.com.au/ or you may call them at 1300 729 261

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Kirk O'Connor
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