Merchants See Larger Share of Revenue Coming from Mobile

One in 10 say more than half of revenue is mobile

Author: Monica Melton

July 12, 2017

One in 10 merchants worldwide say that a majority of their revenue comes via mobile, a new survey found.

The study, by fraud protection firm Kount, found that the number of merchants who credit mobile for more than 50% of their revenue has ballooned from 3% to 10% since 2015.

Over the same period, the share of merchants earning less than 5% of revenue via mobile has declined sharply, dropping to 20% from 35%.

Over 800 merchants participated in the survey, more than three-quarters of them in North America. About one-third reported annual revenue of more than $500 million. More than 80% of the respondents had been selling online for at least five years.

When asked how important mobile is for growth, 62% rated it very important, and another 31% said it was at least somewhat important. The remainder, 7.1%, said it was not important.

The growth of mobile commerce is certainly dramatic enough to warrant that level of interest and focus. eMarketer expects that US mcommerce sales will jump 34.7% to $153.27 billion this year. And the total is expected to more than double by 2021, reaching $404.29 billion, when it will make up more than half of all ecommerce sales.

A variety of factors are driving that growth. First of all, the number of mobile buyers continues to rise. For 2017, eMarketer estimates that number of mobile buyers in the US will rise 8.1% this year to total 147.3 million.

Meanwhile the average number of transactions per buyer is generally rising in markets around the world, as is the average transaction value.

A February 2017 RetailMeNot study found that US consumers made 14 transactions per mobile buyer in 2016, this is up to 15 transactions this year. The average transaction value in the US increased from $74.17 (€65) in 2016 to $83.30 (€73) this year.

The UK and Germany, lead with the highest number of transactions per mobile buyer at 17. But Switzerland had the highest spend at $91.29 (€80).