Tag: retail mobile commerce

The results of a new study have shown that while this is already expensive, the problem is only going to grow.

A new report has recently revealed the results of a study that has shown that at the moment, fraud in mobile commerce is costing an average of 3 percent of the total revenues of retailers who are selling over this channel.

Moreover, the faster the growth of this ecosystem, the more the cost of fraud is likely to rise, said the study.

This research was conducted for RSA – an encryption vendor – and TeleSign – a vendor of fraud prevention – and it analyzed the responses of 250 different enterprises that had an average revenue of $2.54 billion. Among them, it was determined that the annual loss as a result of fraud over mobile commerce was $92.3 million. In certain cases, the impact of fraud on m-commerce was a s great as 25 percent of the sales of the retailer over that channel.

This mobile commerce study showed a great deal of insight into the impact of fraud on retailers.

The survey was conducted online, and among the respondents, 8.4 said that they had not detected any losses as a result of fraud that had occurred either online or over m-commerce channels. That said, 34 percent of the respondents said that they had lost up to 5 percent of their revenues to fraudulent purchases. Another 13.6 percent claimed that the losses they had experienced from fraud online fell between 11 percent and 25 percent. Just over that amount, 14.4 percent, said that their fraud rate was between 26 and 35 percent. And finally, 11.6 percent experienced a staggering online fraud rate of 36 to 50 percent of revenue over those channels.

Although the overall average losses from fraud was from 6 to 10 percent of online revenues for most companies, when looking specifically at medium sized businesses that had revenues within the range of $500 million to $1 billion, the situation was not as “good”. In that group, the average online rate of fraud was between 11 to 20 percent, according to the research.

When it came to mobile commerce fraud, specifically, it was only the very smallest companies that experienced a rate that was under 10 percent. The average large company lost between 10 and 24 percent of their revenues to fraudulent transactions.

Mobile and social channels may help the e-commerce sector grow more this year

Mobile and social channels may be the key drivers of e-commerce growth this year, according to Monetate. The firm notes that mobile commerce, in particular, experienced a period of healthy growth and activity during the 2014 holiday season. During this time, mobile purchases increased by 45% over what they had been during the time period of 2013. Approximately 16% of all e-commerce traffic came from mobile devices as well, making mobile a valuable channel for the larger digital commerce space.

Improved mobile experience may be needed in order to ensure that consumers continue to shop on their smartphones and tablets

Monetate notes that mobile experiences are improving, which is making it more likely for consumers to participate in mobile payments in some way. A good experience encourages consumers to continue using their mobile devices to shop for and purchase products online and at physical stores. Poor experiences have the opposite effect, especially if they become inconvenient and considered a burden to consumers that have come to favor mobility.

Engaging consumers in innovative ways can bring them deeper into the world of mobile commerce

Engaging mobile consumers can be extremely difficult. Monetate notes that businesses that want to engage in mobile consumers must do so in a specialized manner. According to the firm, bounce rates on mobile devices are 50% higher than on desktop computers, and consumers are 30% less likely to add products to their online shopping carts when shopping. Finding ways to create a frictionless, convenient, and enjoyable mobile experience can ensure that businesses have the ability to engage mobile consumers effectively.

Loyalty programs could be the key to further success in the mobile commerce space

Loyalty programs may be one of the first steps in driving deeper personalization of the mobile shopping experience. These programs offer rewards to shoppers that favor particular retailers. Monetate notes that these programs are the most profitable type of initiative that retailers can utilize. They also exist as a way for consumers to customize their experiences with the retailers that they are supporting.