Internet of Things (IoT) Triggers New Impulse E-commerce Purchasing
JAVELIN Assesses Changes in the Online Retail Market as Consumers Click ‘Buy’ with Amazon, Facebook and PayPal
San Francisco, CA, July 14, 2016: E-commerce, m-commerce and social purchases have dominated the headlines as top vehicles and drivers for consumer purchases for the past decade. Today, a new “contextual” consumer is in town whose reliance on IoT and other mobile devices creates an environment for greater impulse purchases. Almost 1 in every 2 dollars spent online will come from online purchases made using a mobile device by in 2020, fueled by contextual shopping, mobile first mentality, and increasing reliance on mobile devices. JAVELIN’s recent report, 2016 Online Retail Payments Forecast, examines the new IoT and mobile devices and applications consumers are using to quickly and efficiently purchase through online and mobile channels.
Buy buttons were introduced in 2014 to enable retailers to bring goods and services into social media, allowing consumers to casually browse and purchase in-app, without ever having to leave the social media site.
Similarly, IoT devices are smart devices with embedded and networked sensors and the ability to use wi-fi or wired connections to transmit information, allowing consumers to purchase directly from the device with each interaction. For example, a consumer would place an Amazon Dash Button to the Tide laundry detergent for the washing machine and press it to reorder a new box when the detergent runs low. These IoT devices such as Dash buttons, Amazon Echo/Alexa, and Samsung Family Hub™, and mobile apps like Fandango, Papa John’s, and Ikea, are becoming more relevant to consumers by being positioned within a home or office and able to engage in commerce at a moment’s notice.
“As consumers move to a 'mobile first' mentality when it comes to e-commerce, they are relying on the most frictionless payments to complete purchases 'on the go',” said Michael Moeser, Director of Payments at JAVELIN. “Consumers will increasingly gravitate to using payment forms that offer the easiest, fastest and most secure payment methodology, particularly one that also integrates shipping/billing addresses as this removes the challenges of typing on a smaller phone keyboard.”
The report, JAVELIN released, 2016 Online Retail Payments Forecast, provides an in-depth analysis of developing trends in e-commerce and forecasts online purchasing patterns through 2020.
Related JAVELIN Research
- Buy Buttons Transform Social Shopping
- Online Retail Payments Forecast 2015
- Mobile Online Retail Payments Forecast 2015
JAVELIN, a Greenwich Associates LLC company, provides strategic insights into customer transactions, increasing sustainable profits for financial institutions, government, payments companies, merchants and other technology providers. Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem.