Industry

Average order value on mobile sees a spike, driven by Amazon Prime Day impulse shopping

UK online retail figures for July show that average order value on mobile devices was markedly higher in July, with the ABV on smartphones up 21% while for tablets it was up 17%.

So finds the latest figures from IMRG CapGemini, which suggest that Amazon Prime Day – and the subsequent discounting and offers from other retailers had an impact. The multi-context nature of mobile devices means they are well suited to the kind of impulse shopping that is stimulated by major discounting periods such as when retailers launch their summer sales.

The overall online retail sales figures tell a similar story, with traffic up, but revenue growing more slowly than in any July on record.

According to the figures, UK online retail sales were up +11% year-on-year (YoY) in July – the lowest July growth rate for the Index in four years (since July 2013), although it was building on a high growth rate recorded in July last year (when it was +18.6%). Growth for online sales so far in 2017 (Jan-Jul) is +12%.

There was also a notable increase in the percentage of site visitors completing a purchase on online retailer sites in July, with the overall conversion rate reaching 5.8%, 21% higher than a year ago.

The clothing and home and garden sectors in particular saw jumps in conversion rates, which were up 43% and 83% respectively. The fact that the conversion rate rise wasn’t matched by a similar boost in online sales revenue growth suggests that discounting activity was high in July, with the summer sales period in full flow and retailers under pressure from Amazon Prime Day.

Justin Opie, managing director, IMRG comments: “87% of respondents to a recent retailer survey we ran claimed that the event has not led them to adapt their summer sales strategies – it does after all already fall during one of retail’s major discounting periods. Yet overall market growth of +11% for July, while solid enough, is probably a bit below expectation – while Amazon reported growth of +60% year-on-year for their 30-hour Prime Day period. Conversion rates being up sounds positive, but the fact that it didn’t deliver a similar boost to sales revenue growth suggests discounting was probably a factor in driving more visitors to complete a purchase. Prime Day is an established event in the calendar now and it may be exerting an impact judging by this month’s results, although other factors – such as rising inflation and consumer confidence – may also be at play.”

One thought on “Average order value on mobile sees a spike, driven by Amazon Prime Day impulse shopping

  1. Pingback: Bad economy, good technology - InternetRetailing

Comments are closed.