or Connect
AppleInsider › Forums › General › General Discussion › Apple's iPad driving e-commerce as market shifts from desktop-based purchases
New Posts  All Forums:Forum Nav:

Apple's iPad driving e-commerce as market shifts from desktop-based purchases

post #1 of 27
Thread Starter 
A new study claims the rapid rise of tablet computing is not only driving e-commerce, but is changing the market's landscape, prompting many traditional retailers to respond by revamping their online storefronts to accommodate devices like Apple's iPad.

iPad mini


In its Ecommerce Quarterly report for the third quarter of 2012, e-commerce solutions provider Monetate found that a groundswell in tablet-based purchases is quickly eroding the share of buys made from desktops, and Apple's iPad is leading the shift.

Monetate provides software as a service (SaaS) technology to some of the biggest retailers in the world, allowing companies like Macy's, Best Buy, QVC and others, to dynamically provide consumer-targeted content. The firm took samples from over 100 enterprise brands in its study which includes the sale of physical goods via the internet.

According to a breakdown of traffic by device, the websites tracked by Monetate saw visits from traditional desktop and laptop browsers drop from 92.33 percent to 81.60 percent in one year as mobile devices like smartphones and tablets more than doubled their respective marketshare. For the three-month period ending in September, tablets accounted for 8.37 percent of all website visits, up from 3.16 percent in 2011, while smartphones jumped from 4.51 percent to 10.03 percent over the same span.

Monetate's Chief Marketing Officer Kurt Heinemann told AppleInsider that he expects the trend to continue as new devices like Apple's iPad mini go to market.

"I truly believe that the tablet is best used as an 'in-house' mobile device -- it's a replacement for the desktop or the laptop," Heinemann said. "The mobile device is really that second screen experience; it's really married to [a user's] media experience in a different way than the desktop."

He went on to compare tablets with smartphones, noting that handsets are best suited for "out-of-the-house" use, while devices like the iPad often accompany consumers as they watch TV or lounge about the home. Of tablet owners who frequent e-commerce sites, the preferred device appears to be the iPad.

Website Visits
Source: Monetate


For the third quarter, the iPad accounted for 88.94 percent of all website visits originating from tablets, followed by Android devices with 6.34 percent and the Kindle Fire with 4.71 percent. As for smartphones, the iPhone's 60.85 percent led the 37.59 percent of traffic garnered by Android-based handsets. Windows Phone accounted for only 0.91 percent of all visits tallied by Monetate.

Conversion Rates and Tablet Form Factors



Arguably more important than site traffic for e-commerce retailers is the number of hits that translate into sales, a metric known as the conversion rate.

For quarter three, tablets were nearly on par with traditional computing, with 3.12 percent of hits actually turning into a sale. Looking at the numbers, the iPad's conversion rate was 3.17 percent, compared to 3.19 percent seen by all Android tablets. Heinemann pointed out that the 7-inch Kindle Fire was at the bottom with 2.06 percent. He explained that many websites don't translate well to the smaller form factor, with clumsy pull-down menus, font sizes and small buttons hurting the overall shopping experience.

Overall, the numbers speak to both Heinemann's theory of "in-house" mobile devices and the primary importance of user experience.

Conversion Rates


Much of the success for any one retail site depends on how a potential shopper interacts, or fails to interact, with the website's design. Paramount to the experience is what Heinemann calls "responsive design," or the level to which a site is streamlined with consumer-targeted content. Apple's iOS excels in this area, with mobile Safari being largely consistent with its desktop counterpart.

Backing up that claim is mobile Safari's massive share of the browser market, which in quarter three was bested only by the desktop version of Chrome and the well-entrenched Internet Explorer. Apple's iOS-centric Safari grew from 7.50 percent of the market to 17.25 percent over the past year, while Microsoft's Explorer saw four straight quarters of decline and dropped from a 47.02 percent share to 35.95 percent in the three-month period ending in September.

Browser Share


The iPad mini Effect



Despite the relatively low-performing form factor introduced seen in the 7-inch Kindle Fire and Google Nexus 7, Heinemann said the comparably-sized iPad mini will become a major player in not only driving e-commerce conversion rates, but changing the way retailers format their digital storefronts.

Although there isn't enough data to offer conclusive evidence of what impact the mini will have on internet-based sales, Heinemann believes the tablet will begin to affect the market in early 2013, and could see performance surpassing that of the full-sized iPad.

"The impact is going to be massive in terms of website design," he said of Apple's new small form factor iPad.

Apple's installed user base, plus the wider market penetration of the iPad brand will likely push retailers to create sites tailored to the mini and work up from there.

"I think what you're going to see is the iPad mini becoming almost a standard design format, because if you can design for the iPad mini, it's going to work on the [full size] iPad, it's going to work on the desktop," Heinemann said. "So instead of taking the desktop and working it down to the iPad mini , think about taking your iPad mini experience and working it up to the desktop. It's going to be that important."
post #2 of 27
Love that wallpaper on the mini in the story photo.
post #3 of 27
Website design? How about making an app for your store.
post #4 of 27
Quote:
Originally Posted by lightknight View Post

1- App means you pay 30% to Apple on digital goods, right?

2- So the Web is dead, the open world is gone, Microsoft won through it's Apple investment instead of Internet Explorer?

You're right, apps aren't really suited to stores due to Apple's cut, but perhaps they are better for most things. So the web will survive but become mostly store fronts? 

 

p.s. I think MS sold their Apple shares some time ago.

post #5 of 27
Quote:
Originally Posted by lightknight View Post

1- App means you pay 30% to Apple on digital goods, right?
2- So the Web is dead, the open world is gone, Microsoft won through it's Apple investment instead of Internet Explorer?

This 30% whining gets really old. Aplpe provides a one-stop shop that millions of users can access, handles distribution, updates, credit card services, etc. That 30% is a great deal compared to a developer doing all that on their own and only having access to a minuscule - almost insignificant - number of users.

So get off your cheapskate high horse okay? You want to go to to a real market and make major money and not pay a % fee, go to Android. Oh wait, no one makes money on it. Hmm.. Go to Windows8. Oh wait, they demands % cut too...

So what are you crying about??
post #6 of 27

These stats pretty much reflect the size of the installed base. Much better than saying, Apple users 330% more likely to shop for Black Friday on their device than Android users, with absolutely no context. Some interesting data here.

 

Android smartphone users have a higher conversion rate than iPhone users.  That clearly contradicts conventional wisdom about Android users not spending.  Tablet users are substantially higher than smartphone users.  And iPad and Android tablet users aren't all that far apart.

post #7 of 27
Quote:
Originally Posted by ascii View Post

Website design? How about making an app for your store.

 

Unless absolutely necessary for added functionality, I fail to see the point.  A website can serve multiple platforms. An app can serve one platform.  For a store trying to get more eyeballs, why would they ever restrict themselves like that?  And have to deal with Apple's BS on app licensing on top of it....all for what amounts largely to a containerized webpage.

post #8 of 27
Quote:
Originally Posted by sflocal View Post

This 30% whining gets really old. Aplpe provides a one-stop shop that millions of users can access, handles distribution, updates, credit card services, etc. That 30% is a great deal compared to a developer doing all that on their own and only having access to a minuscule - almost insignificant - number of users.
So get off your cheapskate high horse okay? You want to go to to a real market and make major money and not pay a % fee, go to Android. Oh wait, no one makes money on it. Hmm.. Go to Windows8. Oh wait, they demands % cut too...
So what are you crying about??

But then they'll be limited to iOS consumers whereas a tablet optimized website can be viewed across multiple platforms.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #9 of 27
Originally Posted by lightknight View Post
2- So the Web is dead, the open world is gone, Microsoft won through it's Apple investment instead of Internet Explorer?

 

Yes, let's bring up this fifteen year old lie to make a point that is invalid on the face of it.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #10 of 27
Quote:
Originally Posted by dasanman69 View Post


But then they'll be limited to iOS consumers whereas a tablet optimized website can be viewed across multiple platforms.

There is little I hate more than a "tablet optimized website". The whole point of putting a desktop class browser on the tablet was to render the "real web", not a dumbed down version.

post #11 of 27
Quote:
Originally Posted by ascii View Post

Website design? How about making an app for your store.

I don't see the point. Make a single site for every device, not a particular brand. Also, I get very annoyed at the sites that pop up notices they have an app that does what the site does already. Some are nice, but often they cut out a control somewhere, meaning I need to go to the real site to perform a task anyway.

Quote:
Originally Posted by chabig View Post

There is little I hate more than a "tablet optimized website". The whole point of putting a desktop class browser on the tablet was to render the "real web", not a dumbed down version.

I agree.
post #12 of 27
Quote:
Originally Posted by chabig View Post

There is little I hate more than a "tablet optimized website". The whole point of putting a desktop class browser on the tablet was to render the "real web", not a dumbed down version.

Same here. I always request the desktop version.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #13 of 27
Me three. I get annoyed when they popup a message that I should get the iPad app for their website.
How to enter the Apple logo  on iOS:
/Settings/Keyboard/Shortcut and paste in  which you copied from an email draft or a note. Screendump
Reply
How to enter the Apple logo  on iOS:
/Settings/Keyboard/Shortcut and paste in  which you copied from an email draft or a note. Screendump
Reply
post #14 of 27
Quote:
Originally Posted by chabig View Post

There is little I hate more than a "tablet optimized website". The whole point of putting a desktop class browser on the tablet was to render the "real web", not a dumbed down version.

There are layouts that just don't scale all that well but are terrific on a full sized screen.

post #15 of 27
Its called mobile first and responsive design.
post #16 of 27

Does anybody know where I could get the wallpaper shown on iPad Mini. It is an awesome wallpaper with nice detail to it.

 

Thanks

post #17 of 27
Quote:
Originally Posted by Shaun Henderson View Post

Does anybody know where I could get the wallpaper shown on iPad Mini. It is an awesome wallpaper with nice detail to it.

Thanks

It's already on your iPad
How to enter the Apple logo  on iOS:
/Settings/Keyboard/Shortcut and paste in  which you copied from an email draft or a note. Screendump
Reply
How to enter the Apple logo  on iOS:
/Settings/Keyboard/Shortcut and paste in  which you copied from an email draft or a note. Screendump
Reply
post #18 of 27

Thanks !!!!!!!!!!! Never thought I would have the best wallpaper stored as standard. :-P

post #19 of 27
Quote:
Originally Posted by Jetz View Post

Android smartphone users have a higher conversion rate than iPhone users.  That clearly contradicts conventional wisdom about Android users not spending.  Tablet users are substantially higher than smartphone users.  And iPad and Android tablet users aren't all that far apart.

I thought of that more as impulsivity to buy stuff. But the difference is too small to talk much about at the moment. My thinking of it as impulsivity is more a characterization of techy gadget people, which is a category of person I reject being, despite my love of GOOD technology. I'm kind of bashing android users with this commentary, thinking that they are the same as the population of nerds and geeks responsible for user bashing and "it's the user at fault, not the tech" mentality. I could be totally wrong about that.
post #20 of 27
Quote:
Originally Posted by lightknight View Post

Quote:
Originally Posted by ascii View Post

Website design? How about making an app for your store.
1- App means you pay 30% to Apple on digital goods, right?
2- So the Web is dead, the open world is gone, Microsoft won through it's Apple investment instead of Internet Explorer?

The 30% only applies to digit products used in the app or a subscription for use within the app. There are thousands of shopping apps in the app store and none of them process transactions through Apple. I prefer the web sites to most of the apps on my iPad (For the sites I use anyway).
post #21 of 27

Oh no - iPad dropped from 96% to 89% on a chart - Apple is doomed, DOOOOOOOOOMED, start selling off your shares of AAPL now.

post #22 of 27
Quote:
Originally Posted by chabig View Post

There is little I hate more than a "tablet optimized website". The whole point of putting a desktop class browser on the tablet was to render the "real web", not a dumbed down version.

 

This is very true, especially if the "optimized" version doesn't offer critical functionality found in the desktop version. Page elements which hover over other content or reposition after scrolling also translate poorly.

post #23 of 27
Quote:
Originally Posted by lightknight View Post

1- App means you pay 30% to Apple on digital goods, right?

2- So the Web is dead, the open world is gone, Microsoft won through it's Apple investment instead of Internet Explorer?

 

Wow, I'm impressed! Still dragging that "Microsoft saved Apple" BS around, eh?    lol.gif

 

And as for Microsoft representing the "open" world... no.... that's off-topic. We won't go there.  1rolleyes.gif

post #24 of 27
Quote:
Originally Posted by ascii View Post

You're right, apps aren't really suited to stores due to Apple's cut, but perhaps they are better for most things. So the web will survive but become mostly store fronts?

Apple takes a cut only on digital items used directly on the iDevice. Otherwise, I doubt eBay or the Amazon store would offer the ability to buy items.

Quote:
p.s. I think MS sold their Apple shares some time ago.

Last I remember, MS sold those shares 2005 or 2006!

How people STILL hold onto information that's seven years out of date, I don't know. It's like complaining about the iPod mini's scroll wheel interface in an era of the iPod nano with its touch screen. The shares were purchased about the time Windows ME was released, so talking about Microsoft buying Apple shares is really digging up some old bones, technologically speaking.
post #25 of 27

Quote: ascii
Website design? How about making an app for your store.

 

E-commerce?  There's an app for that.

 

Apple Store app, iTunes, Amazon, Target, Walgreen's, The North Face, REI, CVS, Starbucks, Groupon, Fandango, AMC Theaters, etc.

 

Not to mention all the other apps that replace web pages.  Apple is app-ifying the web.

The browser is a relic of the 20th century.

Sent from my iPhone Simulator

Reply

Sent from my iPhone Simulator

Reply
post #26 of 27
Quote:
Originally Posted by SockRolid View Post

E-commerce?  There's an app for that.

Apple Store app, iTunes, Amazon, Target, Walgreen's, The North Face, REI, CVS, Starbucks, Groupon, Fandango, AMC Theaters, etc.

Not to mention all the other apps that replace web pages.  Apple is app-ifying the web.
The browser is a relic of the 20th century.

I think an app for when a site is best at is generally a regression. Rather than building one site, you need to make four apps (Mac, Windows, iOS, Android), and I don't think it really benefits anyone. And what if their internal search engine is bad? Another way "in" with a site to find a specific page or product is to use a search engine if you have a web site. External search engine access to a database hidden behind apps prevents this.
Edited by JeffDM - 11/30/12 at 1:28pm
post #27 of 27
Quote:
Originally Posted by chabig View Post

There is little I hate more than a "tablet optimized website". The whole point of putting a desktop class browser on the tablet was to render the "real web", not a dumbed down version.

Agreed ... the only thing they need to change is removing anything dependent on Flash of course.
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › Apple's iPad driving e-commerce as market shifts from desktop-based purchases