Facebook, Twitter to drive online shopping growth

New data from Juniper Research predicts global eCommerce sales will reach $1.7 trillion this year – up more than 17 per cent on last year.

And while recent growth has been buoyed by expansion of public Wi-Fi networks and 4G, the next round of growth will be driven by social media companies creating direct sales platforms.

The new research, Mobile & Online Purchases: Cards, Carrier Billing & Third Party Payment Platforms 2015-2020 concludes that Twitter, Facebook, Pinterest and Instagram have already launched ‘buy’ buttons on their mobile apps.

“Such players are also likely to enhance their sales prospects through strategic retailer partnerships, with Twitter already enabling users to link their accounts to Amazon,” the report said.

The research also finds that online retailers are increasingly seeking to reduce time-to-consumer by launching same-day delivery, while ‘bricks and mortar’ stores now widely offered next-day in-store collection – often charging a premium for this option.

But Juniper cautions that retailers need to deliver a consistency of message, branding and shopping experience across all channels.

“Integration between in-store and online is critical if retailers want to maximise the extent to which they can identify a unique individual’s omnichannel shopping habits,” the report said.

Author Dr Windsor Holden said the key is to ensure consumers are allowed to choose their own path to purchase rather than have it effectively mandated by channel limitations.

The report also concludes that smartphones will account for more than 40 per cent of online transactions by 2020.

“While carrier billing should provide content providers with a key mechanism for monetising digital content, its use for buying physical goods is likely to be limited by comparatively higher share of revenues demanded by network operators and billing platforms.”