Half of all sales on e-commerce marketplace Snapdeal is coming from mobile devices. The company has seen has seen a 25 fold growth in mobile based transactions and the company also stated that sales from mobile devices used to account for only 5% of total orders a year back.
45% of the transactions from mobile were made via the app, while the remaining 55% were made from the mobile site. The company also revealed that 20% of all app users open it every day.
This rise corresponds with the rising data usage by mobile users in India. In Q1 2014, Airtel’s data traffic in India increased by 20% to 46.69 billion MBs during the Jan-Feb-March quarter (details), up from 39 billion MBs in the previous quarter, while that of Idea Cellular increased as much as 30.99% quarter on quarter (charts).
Also read: The shift to mobile
Among Snapdeal users who made a purchase from the app, Android is the more popular operating system accounting for 80% of the transactions, followed by iOS with 20%. This is an interesting statistic since iOS users generally end up spending more online in the US. They also spend more on apps in India. However, when it comes to actual purchases Android users are ahead of iOS, may be this has something to do with the fact that people are not restricted to making payments with a credit card.
Snapdeal announced that the average ticket size of orders place through the mobile apps is higher than those placed through the mobile site. Fashion and home related products are most popular amongst customers buying over mobile owing to the impulsive buying patterns for these products.
Rising steadily: While speaking at Medianama on the consumption patterns of 2013 Kunal Bahl of Snapdeal had said that mobile was one of the big drivers for the service. “We have seen a 20x year on year increase in sales over the mobile, with 30%+ of our orders coming over mobile now, a number which was 5% a year ago,” he had said.
It’s not just Snapdeal, even competitors such as Flipkart has been advertising its mobile apps aggressively in order to convince more people to make purchases using it. With the number of mobile users with access to Internet increasing at a rapid pace, it makes sense for e-commerce companies to get more people to buy products from mobile. It is not clear what percentage of transactions on Flipkart happen via mobile as of now.
PayTM had similarly expanded its service to add a mobile-only e-commerce front earlier this year. One97 CEO Vijay Shekhar Sharma had then told Medianama that more orders will happen on mobile than desktop by 2015. The company was expecting a million orders a day from mobile by then. “For us, that (mobile first) customer acquired is far more important than a current desktop customer. The true power lies in the incremental new customers. Internet is fairly cut-throat with SEM and affiliate marketing, but the mobile is a blue ocean for us,” he had said.