Online retail sales to exceed 6 trillion dollars by 2024
Average online customer spend will surpass 1,000 dollars globally per annum
New data from Juniper Research has shown that the total transaction value of remote payments for digital and physical goods will exceed 6 trillion dollars by 2024; representing a growth of 53 percent from 2019.
The new research, ‘Mobile & Online Remote Payments for Digital & Physical Goods: Opportunities, Pain Points & Competition 2019-2024’, revealed that online sales will be dominated by physical goods; forecast to account for almost 80 percent of online retail purchases by 2024. It urged traditional retailers to offer omnichannel offerings to ensure services align with ever-increasing consumer expectations.
‘Mobile first’ consumers changing the payments equation
Remote payments will be driven by purchases made via mobile devices, with the number of smartphone buyers increasing by nearly 60 percent between 2019 and 2024. Consequently, just 21 percent of purchases will be made using PCs, laptops and connected TVs globally by 2024.
The shift to mobile has impacted purchasing behaviour, with the average value of transactions expected to decline by 2024. Underpinning this growth, and the change in average transaction values, is the adoption of mobile ticketing - which is becoming increasingly remote and cashless.
Successful eRetail strategies for bricks-and-mortar players
Juniper Research assessed the digital strategies of 25 leading bricks-and-mortar retailers according to their levels of agility and innovation. The Home Depot ranked first, owing to its proactive eCommerce strategies and engagement with new technologies, such as augmented reality and analytics, to improve online consumer experiences.
The Home Depot’s retail services are built on an omnichannel strategy; offering customers a comprehensive network of physical stores alongside robust online shopping experiences. Analytics is leveraged to adapt to evolving customer behaviors and AR technology to enable customers to visualize virtual products in the real world via their smartphones.
According to research author, Morgane Kimmich, “Bricks-and-mortar retailers have to go beyond simple eCommerce to become digital-first companies. Retailers must fundamentally embrace the digital era by optimizing data analytics and embracing new technologies; enabled by radical internal organizational change.”