UK's M-Commerce Market to Reach £40 Billion by 2019

The United Kingdom is the second-largest mobile commerce market only after Japan. The penetration of mobile devices in the UK is increasing as the utility of smartphones is deepening because of its portability. Smartphone penetration in the UK has reached 80% of the total mobile penetration which is only a few numbers lesser than US. In 2014, smartphone and tablet devices alone accounted for 45% of all e-commerce traffic in the UK.

As smartphones become even more embedded in customers’ day-to-day lives, it opens up opportunities and challenges for the mobile sector, retailers, advertisers and more.

The report talks about the market overview of m-commerce in the UK, m-commerce sales by different devices, key players and latest trends in the m-commerce space.

The number of visitors to the most popular online retailers on mobile platforms have increased year on year. In the UK, clothing/apparel/accessories is the top retail category searched for on mobile devices. Mobile accounts for 40% of all online retail sales.

Retail sales via mobile devices are set to grow above expectations. UK retail m-commerce sales grew by 37.5% in 2015 to £20.09 billion, accounting for a third of the total retail e-commerce sales in the region. By 2019, retail m-commerce would represent 43.7% of total retail e-commerce.

M-commerce sales are split between smartphones and tablets. The proportion of m-commerce carried out on tablet devices is more compared to that of smartphones. However, the rising popularity of larger-screen smartphones is having an impact on that dynamic.

John Lewis, eirpoint, Cybertill, Zapp and Tesco are some of the key players in the UK m-commerce market.

The report also highlights the latest trends in the UK m-commerce market. Retailers are looking for mobile-optimized websites to secure a smooth experience of browsing products and comfort in adding them to the basket due to bigger buttons/links. Cross-device shopping is constantly increasing among consumers. It is observed that 40% of research and purchasing decisions take place on cross-devices, i.e., on smartphones, tablets and/or desktops. Hence, retailers are working on technologies to provide a seamless omnichannel shopping experience to their customers through a website, mobile apps for smartphones and tablets as well as contactless payment platforms. Also, retailers are looking forward to integrating contactless payment systems to enhance the overall customer experience.

Consumer Rights Act 2015, a new e-commerce and digital content legislation is in effect from October 2015. The legislation would change many of the rules and regulations about providing goods and services online to boost the UK economy by £4 billion over the next decade.