London generates majority of UK m-commerce spending

Thursday, February 18, 2016 - 12:39 by Paul Tissington

In the final three months of 2015, a little over half of all purchases made via mobile apps which offer shopping online to consumers, originated in London.

This is according to a new report from Poq, which indicates that people living in the capital are more likely to harness m-commerce services than those based elsewhere nationwide.

But while Londoners may be the most voracious consumers of app-based retail opportunities, the report found that the highest average order values for mobile spending actually exist in the North East. In this region, a typical basket will be worth 126 per cent more than orders placed in other areas, indicating that there is an appetite for safe shopping online via smartphone apps in every corner of Britain.

The study also identifies differences in the profitability of each consumer from a retailer’s perspective, finding that shoppers in Scotland generate the most revenue for businesses selling products and services through apps.

Overall, apps are two and a half times more valuable than mobile sites in terms of the amount of money they generate per average transaction. They are even better at convincing people to place big orders than desktop sites.

This is, no doubt, because the in-app experience is far more individual and customisable, allowing shoppers to engage directly with retailers and effectively making them a captive audience.

While using a web browser on a desktop or mobile device allows consumers to visit multiple sites operated by different retailers, with an app there is much more focus and a higher likelihood of casual browsers converting into paying customers.

Apps are immensely popular and with Google attempting to integrate access to them with its mobile search functions at the moment, they are becoming tied more closely with the wider web.