Shopping on Mobile Devices Surges, but Its True Potential Has yet to Be Tapped

According to the Deloitte Access Economics report, purchases made via mobile devices constitute more than a quarter of all online purchases in Australia, amounting to sales worth $4 billion annually. Roughly 75% of these revenues are credited to domestic businesses. In 2014, Australians spent a total of $16 billion on online retail, 27% of which came from mobile devices. That percentage started to grow steadily from previous years, and its boom is projected to continue in the future.

Still, the potential of mobile e-commerce remains largely unharnessed. There aren’t many that are tailoring their business models towards mobile. Also, few are capitalizing on mobile features such as the e-wallet and other smartphone payment options. One of the companies who seem to be trying to maximizing the benefits of mobile e-commerce is the Catch Group, owner of the daily deals site Catch of the Day. Right now, as much as 70% of its sales come from either the mobile website or its own app. Initially, the site was really struggling with its mobile component until it decided to change things up and respond to the behavior of its mobile users. And by doing so, Catch has experienced a major improvement in revenues.

As a counterpoint, though, the $16 billion that e-commerce has earned in 2014 is still chump change compared to the $238 billion that traditional retail outlets earned. But remember, the future of online businesses is looking bright, and shopping via mobile devices is only bound to get bigger.

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