45% increase in sales for retail apps due to pandemic

The significant increase during the first wave is particularly remarkable. The number of downloads increased by 109% in April and June had a turnover of 69%. Covid thus appears to be a catalyst for mobile shopping and shopping apps.

Although shopping with a mobile shopping app has already gained in popularity over the past year, in-app shopping by Covid-19 is now really taking off. Now that consumers are staying away from the shopping streets due to the pandemic, independent web shops are seeing a huge increase in the number of downloads and orders within their shopping apps.

Research by app developer JMango360 among 300 independent web shops worldwide shows a turnover growth of no less than 45% in one year. By far the largest growth was recorded during the first months of the Covid outbreak. App downloads were up 109% in April and in-app transactions were up a staggering 88%. The largest growth in turnover was visible in June 2020; that month sales increased by 69%. “Proof that mobile shopping extends beyond the dominant players such as Amazon and and now really affects the entire e-commerce sector,” said Berry de Kort, CEO of JMango360.

Pandemic is now affecting the “real” e-commerce economy
Earlier this year, major US retailers, including Amazon, Best Buy and Home Depot, already reported massive growth in app downloads and in-app transactions from the pandemic. The new figures from JMango360 prove that the shift to mobile shopping is not only affecting the big players, but also the segment below.

‘Major players such as Amazon and receive plenty of attention, but we sometimes forget that the rest of the shops together still control the largest part of the e-commerce market. And they, too, are seeing significant growth in app users and turnover, ‘says Berry de Kort. ‘Especially during the first wave, consumers avoided the physical stores, so many web shops benefited from higher online sales. It shows that the Ubers and Netflixes of this world have made mobile apps increasingly the primary channel. ‘

The survey shows significant growth in all areas, except for the average order value. According to De Kort, the shock was good in the first months of the pandemic, as a result of which web shops offered their products at substantial discounts via push messages and the order value decreased somewhat.

In a competitive and rapidly changing industry such as e-commerce, apps therefore prove necessary for further growth. ‘Even before the pandemic, mobile users were responsible for the majority of traffic to web shops,’ adds De Kort. ‘That is why we have seen an increase in the use of shopping apps for years, but this year’s strong growth shows that apps are now really established.’

Web shops would do well to focus more on their mobile channel. ‘Whether you are a small or large shop, people expect a pleasant and fast mobile experience. Shops should therefore no longer see mobile as a neglected child, but realize that the mobile experience is decisive for more sales. So take a critical look at whether you are using the full potential of mobile. ‘

And now that consumers have fully embraced apps, shopping apps have become an indispensable sales channel. If you want to compete with the major players and benefit from the shift to mobile, you cannot stand still. Otherwise, customers will be snatched up by competitors who do respond well to this need. ‘
(PvWK, image: Ketut Subiyanto / Pexels)

Highlights study ‘annual increase’ (September 2019 – September 2020)
* Total in-app sales: + 45%
* Total In-App Orders: + 58%
* Average order value (AOV): -19%
* App downloads: + 22%

Highlights research “first wave” (Q2 2020)
* App downloads April: + 109%
* In-app transactions April: + 88%
* In-app sales in June: 69%

About JMango360
‘We help every webshop to increase sales through a perfect mobile experience. Mobile apps provide more interaction, a better experience and higher conversions. With our software-as-a-service (SaaS) solution, any shop, small or large, can launch a mobile app for an affordable monthly fee. By seamlessly integrating with all major e-commerce platforms, we transform online shops into powerful mobile apps in an instant. In this way, every online retailer can benefit from the turnover potential of mobile in the coming years. ‘

(source: JM Mango)

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Here the link to the research report (in English)


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