VLEUTEN | In line with expectations, the Dutch mobile commerce market is gaining more and more traction. Based upon the M-commerce Monitor for the first half of 2013 published by Blauw Research, the total mobile commerce accounted for 550 million euro turnover (755 million USD), an increase of 67% compared to the second half of 2012. The total amount spend via mobile and tablet is around 11% of the total ecommerce market in the Netherlands (5 billion euro for first half 2013).
Mobile Commerce Monitor
The bi-yearly research by Blauw Research is conducted in cooperation with the Dutch home shopping association Thuiswinkel.org and is sponsored by iDeal, the preferred online payment method in the Netherlands. Thuiswinkel.org represents around 2000 online merchants active on the Dutch online market. Thuiswinkel.org is also part of the european home shopping association Ecommerce Europe.
Dutch Mobile Commerce Facts and Trend
Compared to the same period in 2012, the number of mobile shoppers has increased with 53%. In the first half of 2012 1.5 million shoppers purchased their goods via smartphone or tablet, for the same period this year already 2.3 million people bought online using a mobile device. Also the number of purchases and the average amount spend increased, respectively to 12 million (+56%) and 239 euro per mobile shopper (+9%). Same as last year, clothing and shoes remain the most important segment for mobile shoppers (40%), followed by personal care products (22%), computer hardware (21%), music downloads (20%) and airline tickets (19%).
To emphasize the rapid growth in mobile shopping it is interesting to see the 210% increase compared to first half of 2011 (740.000 to 2.3 million mobile shoppers). The total mobile commerce turnover for 2012 was 560 million euro, almost the same amount is spend already in the first six months of 2013. Equally important to recognize is the growth in share in online turnover: in 2012 around 6% was via mobile, now already 11% of the online spend is conducted via smartphone or tablet.
Smartphone and Tablet Commerce
According to a research by Telecompaper, already over 10 million Dutch people have a smartphone with internet subscription (private and business subscriptions probably). The Dutch population in total is around 16.8 million (Oct. 2013), with 10 million people between 20-65 years. In other words, the smartphone penetration rate in the Netherlands, one of most important factors for mobile commerce success, is one of highest in the world.
Next to the smartphone, and maybe an even bigger driver for mobile commerce, is the adoption and usage of tablets in Dutch households. A recent research by Telecompaper indicates that around 3 million households have already one or more tablets. In 64% of all mobile purchases the tablet is the device of choice. In addition, almost two-third of all mobile shoppers purchases online via their tablet, 95% of all purchases are done from home (vs 62% on smartphone).
Mobile Website and Checkout Optimisation
Next to mobile device penetration rates, internet access capabilities, spending power and many other factors for mobile commerce success, there are things online merchants can do to benefit from additional sales via the mobile channel and maintain these growth rates. Merchants could further optimise their websites for mobile interaction and improve shopping experience by making them responsive or by building a specific mobile website or app.
Besides the need for a responsive, mobile website or app, merchants could also take into consideration the optimisation of checkout. Especially on mobile devices the need for speed and payment convenience is evident. Recent experiences from one of the leading Dutch online retailers Coolblue showed that a substantial number of customers abandoned their shopping cart in the final stages of the buying process. They have chosen for responsive web design and tweaked their mobile checkout process resulting in 30% increase in conversion.
Dutch Mobile Commerce Market Outlook
As the number of smartphone and tablet users and online commerce in general continues to grow, it is to assume that the mobile commerce turnover for 2013 will grow in parallel and exceed the 1.2 billion euro. Especially now the holiday season has started ('Sinterklaas' and Christmas) and household spending, both online and offline, will definitely increase.
The recent optimisation by Rabobank and ING Bank of payment method iDeal for mobile purchases will certainly improve the payment checkout experience for many mobile shoppers and most likely drive mobile spend. iDeal is still by far the preferred online payment method for Dutch online shoppers. By excluding the need for authentication using a so-called random reader, Rabobank has most probably ensured conversion rates on mobile devices go up. Together with the optimised Mobile iDeal from ING Bank especially more sales via smartphone and 'on-the-go' are expected.
Crucial point of interest and an important condition for future growth remains the online merchants' readiness for mobile traffic and 'migration' towards optimised websites and payment checkout.