Mobile and online sales have produced billions in sales despite the struggle on the highstreet to command strong figures in the run up to Christmas.
Christmas might be over but the number grinding has begun for the 2011 figures, and despite the early December-discounting shops struggling in the UK have suffered from poorer sales than the Christmas period in 2010. However, the shining light in these dark days has been e-commerce.
Amazon and eBay have reported that their mobile applications have produced billions of dollars in sales, alongside a report from Jupiter Research which estimates that by 2015 mobile transactions will be worth in the region of $670 billion. They are not alone in the market, as strong returns and increased uptake encourage competition from high profile service providers. Google Wallet and Paypal Wallet are key offerings in this area, Paypal utilising its established finance network to branch out and offer a broader service. An intriguing start-up, Swipe, is offering US users a free adaptor for their smartphones when they sign up, allowing them to swipe credit cards on the go and take payments through iOS and Android. Next saw an increase in directory sales by 16%, with 90% of this coming from their online shop, with John Lewis posting unexpected profits thanks in part to an online sales boost of 28% compared to the same period in 2010.
The ease and impulse of buying online or through an app, combined with the potential to save time and money has attracted a massive user base from consumers, and from the growth the industry is bearing witness to it is hard to see it slowing down. Moving into e-commerce, solely or as a sustained branch of an existing product, has measurable growth potential and can produce returns far beyond a traditional, physical shop.
Square is well worth a look; Click here to visit the Square page on the Apple iTunes App store.