The U.S. holiday shopping season has turned into a month-long event. Digital media consumption increased by 15 percent compared to last year. Mobile commerce is growing, and COVID-19 and contactless payments are coming. In this article, we’ll look at how these changes impact eCommerce.
Digital media consumption increased by 15% year-over-year.
P.Q. Media’s 9th annual global consumer media consumption forecast covers 2015-2025, covering the Top 20 Global Markets, the Rest of the Countries, and six consumer generations. It covers 25 digital media platforms and includes data on over 250,000 media users across all ages, genders, and countries.
The growth was primarily driven by user-created content. According to the Consumer Technology Association, the most common reasons consumers seek out user-generated content are to learn how to do something, to watch content that is not available on traditional T.V., and to consume content about niche topics.
Digital media consumption will continue to increase over the coming years. By 2020, smartphone users will spend more than three hours daily with digital media. By 2021, smartphone users will account for over half of their media consumption, with desktop/laptop time falling slightly over the next five years. But the habits that were cultivated during the media pandemic will likely stay. The Great Generation will continue spending more time with their devices than ever.
In addition to the growth of e-commerce, a deeper trend is influencing consumer behavior. Streaming video-on-demand services (SVOD) have unbundled traditional video from television, lowering consumer costs while igniting fierce competition among providers. As a result, leading SVOD services have consolidated content and expanded into international markets. This has meant they are under more pressure to attract and retain subscribers.
In addition, U.S. adults will spend more time than expected on digital media in 2020. They will spend an average of seven hours and 50 minutes on digital media daily, up from six hours and 50 minutes in the previous year. As a result, the time spent on digital media will continue to grow until 2023.
Growth of mobile commerce
It would help if you optimized your mobile commerce strategy to stay ahead of your competitors. Javelin predicts a significant uptick in mobile commerce purchases in 2020. But it would help if you started to make the most of this opportunity. Focus on developing robust mobile apps and marketing to provide consumers with an exceptional omnichannel experience. More consumers are willing to engage with brands and products through mobile phones. In addition, they want to purchase products from any location and at any time.
By 2021, mobile commerce sales are expected to account for about 54% of all eCommerce sales. Currently, one-third of consumers research products on mobile devices and more than half of vendors have built mobile apps. This growth in mobile commerce is projected to continue for several more years.
Mobile commerce is expected to grow from $122 billion in 2015 to almost $319 billion in 2020. Javelin expects that smartphone-enabled purchases will represent nearly half of all online retail sales by 2020. This increase is primarily attributed to retailers’ efforts to provide smartphone-friendly storefronts and payment solutions.
The Japanese eCommerce market is worth $150.1 billion, and mobile commerce makes up just under 25% of that figure. Although this may be disappointing for many people, experts still point to the enormous potential of the e-commerce market in the country. For example, 54% of all eCommerce is now conducted through mobile devices in the Czech Republic.
Increasing use of wireless handheld devices provides consumers with convenience, enhanced security, and easy access to the internet. In addition, more tech-savvy consumers are making mobile-based payments. With the introduction of digital wallets and online payment gateways, mobile payments have become more secure. Consumers can also save time and effort by eliminating manual entry and card swiping. This enables a smooth checkout experience and reduces the potential for human error.
By 2025, mobile commerce will account for 6.9% of all retail transactions. It is expected to increase to 10% by 2025. Millennials are the most significant m-commerce users. These consumers are also the most responsive to targeted messages. Moreover, they are more likely to purchase products through a smartphone.
Impact of COVID-19 on eCommerce
More firms and consumers will feel the impact of COVID-19, and the regulatory uncertainty will worsen the division between offline and online sales. While the crisis has exacerbated existing challenges, it has also heightened the need for policy action. Some countries have implemented policies to help businesses adapt to the digital world.
The crisis also highlights the complementarity between offline and online sales channels. Although Amazon’s sales increased in the first quarter of 2020, its share of e-commerce fell from 42.1% in January to 38.5% in June 2020. Amazon has lost market share to competitors such as Walmart and Target, which can capitalize on their vast networks of brick-and-mortar stores.
The COVID-19 pandemic has already changed consumer behavior. As a result of the outbreak, more consumers are working from home and avoiding crowded places. While this may be good news for retailers, it has also caused a significant shift in consumers’ buying habits. As a result, many brands are adjusting their business models.
The COVID-19 pandemic has been disruptive for all groups and industries, but it has also created an opportunity to unlock the potential of e-commerce. As a result, e-commerce has become increasingly popular, with ICT adoption increasing and digital innovation growing dramatically. The impact on the global supply chain can be seen in several countries, particularly in food, where farmers have started selling directly to consumers through digital technologies. Restaurants are also using e-commerce as a way to provide food to consumers.
COVID-19 has also spurred the use of e-commerce and ICTs by local retailers. This has improved accessibility and convenience and contributed to local enterprises’ diversification. It also contributes to the resilience of supply chains and sustainable e-commerce.
To keep up with this new trend, governments must ensure that regulations are flexible, transparent, and allow experimentation. These approaches should include easing the cap on contactless payments and allowing temporary exceptions to planning rules. Some governments have even introduced regulatory sandboxes to help new technologies and businesses.
Impact of contactless payment on eCommerce
Contactless payments are rapidly gaining traction as a faster, safer, and more convenient way to make payments. In the U.S. alone, contactless card payments will increase by eight times over the next four years, according to a recent study. This trend will continue to grow as more consumers adopt mobile payments. By 2020, Mastercard expects to process more than one billion contactless payments globally.
Contactless payment is already affecting the online shopping experience. According to a recent survey, nearly four out of ten consumers say they will use it more often to purchase products. However, they are concerned about fraud and delivery time. Thankfully, there are several ways to overcome these concerns, including allowing payment on delivery and expanding payment methods.
While contactless payment is becoming more popular, it isn’t yet available to everyone. Many people who don’t have bank accounts will still need to use cash to make purchases. Also, retailers with no-cash policies may keep out lower-income and elderly consumers. Additionally, the transaction limit of contactless payments is lower than a signature-based confirmation.
In the U.S., contactless payments have been increasing in recent years. In the first quarter of 2020, Mastercard reported a 40% increase in contactless transactions at grocery stores. Contactless payments are also becoming increasingly popular in other countries. The London transit agency started accepting contactless payments in 2014.
COVID-19 will undoubtedly significantly impact the payments landscape in the coming years. It is expected to shift towards more flexible payment methods, such as e-wallets, as consumers prioritize their safety over convenience. This trend will likely continue as e-commerce grows and new technology is developed.
The shift away from cash has profound implications for the economy. In the U.S. alone, 60% of merchants switched to online sales in 2016. This shift affects industries like cafes, quick-service restaurants, and fast-food restaurants. People are utilizing their mobile devices to make payments, and Q.R. code payments can make this a very convenient way to pay for items.