With news that eBay and its payment service PayPal’s mobile business growing so rapidly that it has become impossible to predict future figures, have you been left wondering where your business is going wrong?
Last year, PayPal had to constantly revise its mobile payment predictions because the number of people using their smartphones to make a purchase just kept on rising.
But is your business yet to see a significant number of mobile sales?
Well, don’t fret yet, as it may not be your fault.
Research from Verdict, commissioned by eBay UK, informs us that the UK market is currently being held back by unreliable mobile broadband.
The research found that 16 per cent of the country is showing significantly weaker mobile internet spending than the national average.
eBay’s UK retail director, Angus McCarey explains that this is because some people reside in an ‘m-commerce not-spot’, in remote places like the Scottish Highlands and rural parts of England and Wales.
UK improvements must be made
eBay has called on communications regulator Ofcom to do more to address consumer dissatisfaction when rules for the fourth generation (4G) of mobile networks are agreed later this year.
The online retailer has called for the country’s mobile network infrastructure to be improved to ensure full growth potential and prevent retailers missing out on valuable revenue.
eBay UK believes that that improving the mobile network infrastructure could deliver a $6.8 billion boost to the country’s economy by 2016 and a further $19.8 billion by 2021.
“The research shows that consumers and retailers are missing out as the cost and reliability of mobile broadband prevents shoppers from spending,” said McCarey.
“High quality and reliable mobile broadband coverage throughout the UK has to be our ambition, giving consumers choice over when and how they shop, encouraging spending, thereby benefitting online and high street retail, and giving a much needed boost to the fragile economic recovery.”
Considering that mobile payment volume went from $750 million in 2010 to $4 billion a year later, it is clear that eBay is right, and that the UK really needs to enhance mobile broadband for everyone so that consumers and businesses can take advantage of mobile shopping.
So if you have been wondering why your business has not seen any increase in mobile sales, this could very well be an important factor.
Do you think your business has been affected by poor mobile broadband? Let us know in the comments section below.