SEA ecommerce: Mobile is king, but desktop remains relevant

With a tap, swipe, or shake, today’s consumers are redefining what it takes to succeed as an ecommerce player in Southeast Asia.

Mobile is no longer just one of many platforms; it’s now the apex selling channel for all e-tailers. Research from Google and Temasek estimates that more than 90 percent of Southeast Asia’s internet users use smartphones as their primary device.

So, has mobile usurped desktop as the leading platform driving online purchases?

Using our own traffic and transaction data from ShopBack, here are our findings.

Mobile app traffic is not just the biggest but also the fastest growing

In 2014, we entered the ecommerce scene with a desktop-first approach. Our mobile app, which was launched in July 2016, topped the charts within 24 hours of launch. In less than a year, it has surpassed desktop as our leading source of traffic.

Total traffic: Mobile vs desktop as of Q2 2018 in Southeast Asia

Growth in traffic: Mobile vs desktop over four quarters from Q3 2017 to Q2 2018

Even with a commanding lead, recent growth in mobile app traffic shows no signs of deceleration. In fact, its growth continues to outpace that of desktop’s. The difference in growth rate is particularly pronounced during the year-end period in 2017, with mobile apps growing at least three times more than desktop.

This is due to a confluence of growth drivers that are shaping today’s ecommerce industry:

1. A shift toward online consumption: There’s double-digit growth in all online platforms and categories on a quarterly basis. This growth is particularly pronounced in Indonesia and Thailand, where ecommerce markets are predicted to expand by 44 percent and 25 percent, respectively over the next two years.
2. Higher engagement rates with mobile devices: This is in part due to the innovations in mobile apps to appeal to users. Notably, ecommerce giants have been creating mobile app features to heighten platform stickiness beyond purchasing (e.g. Shopee’s “Shopee Shake” and Lazada’s “Slash It”). We also analyzed our traffic data by the hour and found that users are far more engaged with their smartphones regardless of the hour of day. At 11 pm, there is close to seven times more traffic on mobile apps than on desktop.
3. Marketing innovations by key ecommerce players: Shopping festivals, with their unique mix of limited offers and special deals, have been pivotal in attracting virtual footfall for many online retailers. In this region alone, shopping days such as Singles’ Day, Black Friday, Cyber Monday, and 12.12 accounted for the lion’s share of sales over the year-end period. Based on our data, revenue earned from one of these popular shopping days is roughly equivalent to three-quarters of a month’s revenue in 2017.

Daily traffic: Mobile vs desktop on an hourly basis as of Q2 2018

Mobile apps account for the bulk of purchases made online

Our transaction data shows that mobile apps alone accounted for three-quarters of orders made online*. Of the five countries covered in our database, Thailand displays the strongest preference for making purchases on mobile apps, followed by Indonesia and the Philippines.

Desktop remains a key platform for large purchases

Conclusion