E-commerce is big business and getting bigger every day. The most popular e-commerce categories, not surprisingly, are nonconsumable—durables and entertainment-related products.
Social networks are contributing significantly to the growth of e-commerce business revenue.
The global e-commerce industry generates over $1.2 million in revenue every 30 seconds with Facebook, Pinterest and Twitter contributing $5,483, $4,504 and $4,308 respectively, says a joint study by Assocham-Deloitte. Social media pages provide information regarding new products in the market, user reviews and ratings of the product, recommendations, and information technology (IT) products.
According to analysts, social networks increasingly have direct links to e-commerce sites, which provide complete product description, availability status, pricing and delivery information, and access to product reviews and ratings, all of which help prospective buyers to make a purchase.
The e-commerce companies are concentrating their efforts on increasing the penetration of their mobile apps for higher growth. Big players in this space claim to have more than 50% of their revenue coming from mobile apps. In the next three years, global e-commerce sales made via mobile devices are expected to top $638 billion, adds the study.
The rapid spread of mobile internet, especially of smartphones could unlock a significant market. Mobile retailing is expected to continue to grow aggressively.
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