In-app purchases rose 54% during second quarter of 2020

Anne Freer | November 5, 2020

App Marketing

Purchases made through apps by independent retailers rose 54% during Q2 2020, according to new research by mCommerce agency JMango360.

The figures reveal that COVID-19 lockdowns have had a significant effect on how people are shopping.

However, mCommerce transactions were on the rise before lockdowns. Over the course of the year (from September 2019 to September 2020), transactions in-app increased 58%.

Nevertheless, the biggest jump in purchases on mobile were seen during June 2020 (up 88%).

“Big e-commerce brands like Amazon get all attention but we should not forget that the biggest part of the online economy is still driven by independent retailers, and they are growing as well,” said Berry de Kort, CEO of JMango360.

“During the pandemic, shoppers were avoiding bricks and mortar shops so e-commerce benefitted. But e-commerce now is largely driven by mobile, and the Ubers and Netflixes of the world have made apps the first stop when people want to do something important with their smartphones.”

Large retailers including Amazon, Home Depot and Best Buy all reported huge spikes in in-app purchases and app downloads as a consequence of coronavirus lockdowns.

The findings also show that in-app revenues were up 69% during June and commerce app downloads rise 109%.

Marketers and retailers are slowly taking note of the shifting shopping landscape by encouraging shoppers to use apps through discounts and push notifications to drive sales.

“Even before the pandemic the majority of traffic to web retailers was coming from smartphones,” adds de Kort. “We’ve been seeing steady increases in app usage over the year, but the year-on-year figures prove it’s more than a short-term blip. Mobile shoppers are impatient and have high expectations.

Large or small, every retailer will need to continually demonstrate that their app shopping experience can make life better or easier for them. If they don’t, competitors might lure their customers away. Shoppers have embraced mobile apps and they won’t be going back to the slow and cumbersome purchase journeys offered by mobile responsive websites.”

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