E-Commerce Sales Increasing Due to Popularity of Mobile Devices and Tablet Shopping Amanda Caruso Professor Gupta BK January 28, 2014 Amanda Caruso Professor Gupta BK January 28, 2014 Assignment One – Identify External Trend

“Retailers Are Driving Huge Increases In Mobile Shopping And Buying – This Is How”  Sales made on mobile device accounted for more than 20% of e-commerce sales on Black Friday in 2013  40% of traffic on online retails sites came from those shopping on mobile devices  Popularity of sales due to the number of American who own a smartphone now  63% of consumers owned a smartphone at the end of the 3 rd quarter of 2013  Increase in the number and usage of mobile coupons in grocery, clothing, and department stores industries across the country  Location targeting data allows more digital coupons to be offered and allows retailers to see who’s redeeming coupons  Increase in the number of loyalty programs that allow customer to pay without cash  Stores learn customer’s shopping habits and offer deals  Sales made on mobile device accounted for more than 20% of e-commerce sales on Black Friday in 2013  40% of traffic on online retails sites came from those shopping on mobile devices  Popularity of sales due to the number of American who own a smartphone now  63% of consumers owned a smartphone at the end of the 3 rd quarter of 2013  Increase in the number and usage of mobile coupons in grocery, clothing, and department stores industries across the country  Location targeting data allows more digital coupons to be offered and allows retailers to see who’s redeeming coupons  Increase in the number of loyalty programs that allow customer to pay without cash  Stores learn customer’s shopping habits and offer deals

“Study: Consumers More Likely to Shop On Mobile Devices than PCs”  A study shows that smartphone and tablet users are more likely to visit a retail website in comparison to desktop computer users  Businesses without mobile friendly websites or store apps could turn away a third of their potential customers  In June, 90% of mobile device users visited a mobile e-commerce website compared to 78% of desktop users visiting a store’s website  Sales made on smartphones are greater than purchases made on tablets; but when shopping on a tablet consumers purchasing is 20% higher than on mobile devices  Average spending was around $47.14 on mobile devices and $56.87 on tablets  Mobile commerce sales are highest in the third and fourth quarters of the year  A study shows that smartphone and tablet users are more likely to visit a retail website in comparison to desktop computer users  Businesses without mobile friendly websites or store apps could turn away a third of their potential customers  In June, 90% of mobile device users visited a mobile e-commerce website compared to 78% of desktop users visiting a store’s website  Sales made on smartphones are greater than purchases made on tablets; but when shopping on a tablet consumers purchasing is 20% higher than on mobile devices  Average spending was around $47.14 on mobile devices and $56.87 on tablets  Mobile commerce sales are highest in the third and fourth quarters of the year

“Study: Consumers More Likely to Shop On Mobile Devices than PCs”

“Staples Acquires Runa, Boots E-Presence”  Staples recently acquired Runa, a software based company in order to boosts its online sales presence  Staples is currently the second largest online retailer behind Amazon  Staples purchased Runa in order to offer consumers a more personalized shopping experience  Systems will offer personalizes sales for individual, delivery times, and free consignment delivery offers  In August 2013, Staples also invested in to a e-Commerce Development Center in Seattle  Center will research and enhance mobile platform opportunities and custom shopping experiences  In June of 2014, Staples is expected to launch an omni-channel store to incorporate its website and mobile platform stores into its store-front locations  Staples recently acquired Runa, a software based company in order to boosts its online sales presence  Staples is currently the second largest online retailer behind Amazon  Staples purchased Runa in order to offer consumers a more personalized shopping experience  Systems will offer personalizes sales for individual, delivery times, and free consignment delivery offers  In August 2013, Staples also invested in to a e-Commerce Development Center in Seattle  Center will research and enhance mobile platform opportunities and custom shopping experiences  In June of 2014, Staples is expected to launch an omni-channel store to incorporate its website and mobile platform stores into its store-front locations

“Luxury Brands Start to Think Mobile”  Luxury brands are beginning to switch towards mobile commerce by developing mobile apps and mobile device friendly websites  A study conducted by L2 found that many luxury jewelry and watch brands rely on outdated technology on their websites that do not support mobile device shopping opportunities  Websites did not respond to touch-and-swipe technology and could not switch between portrait and landscape orientation  Lack of mobile support stems from the multi-media heavy websites originally adopted when entering the online market  Brands are now launching mobile device applications and mobile supported websites  iPad apps increased by 10% and 5% for Android devices the luxury brand market over the past year  Experts encourage luxury brands to work towards tablet friendly applications where they can easily display pictures and better connect with their target markets  Luxury brands are beginning to switch towards mobile commerce by developing mobile apps and mobile device friendly websites  A study conducted by L2 found that many luxury jewelry and watch brands rely on outdated technology on their websites that do not support mobile device shopping opportunities  Websites did not respond to touch-and-swipe technology and could not switch between portrait and landscape orientation  Lack of mobile support stems from the multi-media heavy websites originally adopted when entering the online market  Brands are now launching mobile device applications and mobile supported websites  iPad apps increased by 10% and 5% for Android devices the luxury brand market over the past year  Experts encourage luxury brands to work towards tablet friendly applications where they can easily display pictures and better connect with their target markets

“Starbucks Digital Offering Set for Caffeine Shot to Stir Global Sales”  Starbucks’ sales were challenged this year by having to compete with coffee stores around the world through ecommerce  Global sales were up from last year, but were lower than predicted sales results  The company is hoping to increase its sales by offering more deals through its “My Starbucks Reward” programs  Through the holiday season, the company offered deals based on geo-targeting its customers through their mobile devices  The company has also recently allowed customers to place orders from their mobile device and pay for their drinks from their phones too  Howard Schultz, CEO, recently stated that “We are just beginning to appreciate the full magnitude and possibilities of the Starbucks mobile payment platform opportunity”  Starbucks’ sales were challenged this year by having to compete with coffee stores around the world through ecommerce  Global sales were up from last year, but were lower than predicted sales results  The company is hoping to increase its sales by offering more deals through its “My Starbucks Reward” programs  Through the holiday season, the company offered deals based on geo-targeting its customers through their mobile devices  The company has also recently allowed customers to place orders from their mobile device and pay for their drinks from their phones too  Howard Schultz, CEO, recently stated that “We are just beginning to appreciate the full magnitude and possibilities of the Starbucks mobile payment platform opportunity”

Mobile Device Shopping Industry Impact  The growing popularity of mobile devices and tablets with consumers across the global is dictating that businesses have mobile friendly website or apps where consumers can shop from  Businesses in many different industries are working on e-commerce besides retail stores  Banking from phones and grocery delivery services  Retails stores need to ensure that user interface for e-commerce is easy for customers to navigate  Study have shown that design and user experience problems will cause customers to not make any purchases  Led to businesses purchasing software companies or spending more money on redesign their websites and apps  Rise in offering deals to customers based on their past shopping experiences and more deals when using mobile platforms for shopping  Brick and mortar stores are also incorporating online sales into their storefronts by offering less in- store products or the ability to order out of stock items in the store  The growing popularity of mobile devices and tablets with consumers across the global is dictating that businesses have mobile friendly website or apps where consumers can shop from  Businesses in many different industries are working on e-commerce besides retail stores  Banking from phones and grocery delivery services  Retails stores need to ensure that user interface for e-commerce is easy for customers to navigate  Study have shown that design and user experience problems will cause customers to not make any purchases  Led to businesses purchasing software companies or spending more money on redesign their websites and apps  Rise in offering deals to customers based on their past shopping experiences and more deals when using mobile platforms for shopping  Brick and mortar stores are also incorporating online sales into their storefronts by offering less in- store products or the ability to order out of stock items in the store

References  Fowler, G. (2014, January 7). Do online grocers beat supermarkets?. The Wall Street Journal. Retrieved January 26, 2014, from  From E-Commerce to Physical Retail Stores: Video. (n.d.). Bloomberg.com. Retrieved January 26, 2014, from  Heggestuen, J., & Ballve, M. (2014, January 24). Retailers Are Driving Huge Increases In Mobile Shopping And Buying - This Is How. Business Insider. Retrieved January 26, 2014, from commerce-trends  Joseph, S. (2014, January 24). Starbucks digital offering set for caffeine shot to stir global sales. Marketing Jobs & Marketing News. Retrieved January 26, 2014, from drink/news/starbucks-digital-offering-set-for-caffeine-shot-to-stir-global-sales/ article  Marc, J. (2014, January 20). Luxury Brands Start to Think Mobile. The New York Times. Retrieved January 26, 2014, from  McDermott, J. (2013, August 27). Ad Age Digital. Advertising Age Digital RSS. Retrieved January 26, 2014, from  Mobiquity. (2013, December 11). Marketwired. Marketwire. Retrieved January 26, 2014, from study-from-mobiquity htm  Staples Acquires Runa, Boosts E-Presence. (2013, October 3). Yahoo Finance. Retrieved January 26, 2014, from  Fowler, G. (2014, January 7). Do online grocers beat supermarkets?. The Wall Street Journal. Retrieved January 26, 2014, from  From E-Commerce to Physical Retail Stores: Video. (n.d.). Bloomberg.com. Retrieved January 26, 2014, from  Heggestuen, J., & Ballve, M. (2014, January 24). Retailers Are Driving Huge Increases In Mobile Shopping And Buying - This Is How. Business Insider. Retrieved January 26, 2014, from commerce-trends  Joseph, S. (2014, January 24). Starbucks digital offering set for caffeine shot to stir global sales. Marketing Jobs & Marketing News. Retrieved January 26, 2014, from drink/news/starbucks-digital-offering-set-for-caffeine-shot-to-stir-global-sales/ article  Marc, J. (2014, January 20). Luxury Brands Start to Think Mobile. The New York Times. Retrieved January 26, 2014, from  McDermott, J. (2013, August 27). Ad Age Digital. Advertising Age Digital RSS. Retrieved January 26, 2014, from  Mobiquity. (2013, December 11). Marketwired. Marketwire. Retrieved January 26, 2014, from study-from-mobiquity htm  Staples Acquires Runa, Boosts E-Presence. (2013, October 3). Yahoo Finance. Retrieved January 26, 2014, from