While behaviour on smartphones and tablets has already begun differentiating itself in general, that’s doubly true for retail. Tablet users do more research and buying at home and at night than smartphone users, and they tend to make bigger purchases, more frequently.
Retailers haven’t paid much attention to the nuances of tablet-based retail behaviour, however, due to the devices lower penetration rate. But if they continue ignoring the tablet opportunity — as many have been — they risk missing out on sales on a channel that is quickly eclipsing smartphones.
In a new report from BI Intelligence, we take stock of the explosion in tablet-based e-commerce, analyse the best data available on tablet shopper behaviour and how it’s different from the behaviour of smartphone owners. We also explore why retailers have lagged in creating tablet-friendly shopping experiences for their users, despite allocating budgets to ad campaigns meant to be viewed on tablets.
Here’s how mobile commerce is shaping up this year, and how tablets are emerging as a preferred e-commerce device:
- Mobile spending: Commerce conducted on tablets and smartphones, will account for nearly $US30 billion this year, and we expect tablets to take a 50% share of that total by year-end, despite their lower penetration rate.
- In terms of time-spend, we’re past the mobile retail tipping point: Mobile now accounts for 59% of time spent on e-commerce, according to comScore.
- Smartphones tend to be used in the middle of the shopping process, while tablets are used both at the beginning for high-level research and at the end to finalise purchases.
- But retailers aren’t ready for the surge in tablet commerce. Most of their tablet sites and landing pages are sub-standard, and consumers report being dissatisfied with their tablet shopping experiences.
- In spite of these shortcomings, tablet-focused advertising shows promise. The data shows that audiences are surprisingly receptive to interactive tablet ads.
- It’s a global story too. In many emerging markets, adoption of smartphones, and especially tablets, is still in its early stages. Smartphone and tablet penetration will speed up, and cause mobile commerce to accelerate along with it.
In full, the report:
- Provides an analysis of tablet and smartphone spending data, and proprietary projections on the breakdown between the two devices.
- Reviews all the data on tablet vs. smartphones in terms of retail site traffic, conversion rates, propensity to buy, order values, and each device’s relative weight on peak days like Cyber Monday.
- Explains tablet user preferences for browsing and purchasing rather than middle-stage research like store location or price comparisons.
- Explores the persistence of the iPad as the driver of a large amount of tablet commerce.
- Shows how tablet users tend to gravitate toward the mobile Web rather than apps for the bulk of their e-commerce needs.
- Digs into the data on tablet ads and how online ad budgets are being allocated between desktop, smartphones, and tablets.
- Examines the shortfalls in terms of retailer tablet sites and apps, and the resulting satisfaction gap among consumers, who report being far less happy with their tablet shopping experiences.
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