As Apple marks the fifth anniversary of its app store, new research from eBay looks into increasingly competitive app marketplace, to uncover the best ways to appeal to smartphone users.
Key research findings:
• eBay reveals that over 1m apps went into production last year alone
• The research shows that apps involving retail products or services had a 42% success rate for reaching launch stage
• That’s just shy of 73,000 retail apps made available in app stores last year – with so many apps available, eBay’s head of mobile is warning that creating stand out from the competition to drive traffic is difficult
eBay’s first ecommerce app is five years old this week. 160 million downloads later, new research from eBay shows the challenges retailers face in cutting through this crowded market to engage customers on the move.
Over a million consumer facing apps went into production last year as brands and retailers raced to take advantage of the opportunity to engage with consumers via their smartphones and tablets.
Apps involving retail products or services had a 42% success rate for reaching launch stage, with just shy of 73,000 retail apps made available in app stores last year. The majority of these were ‘informational’, but around one in five (18%) allowed consumers to purchase goods, underlining the importance of mobile in the rise of ‘anytime, anywhere’ shopping.
Olivier Ropars, Senior Director of m-commerce, eBay Europe, commented: “Sales of mobile devices have rocketed and smartphones are the mission control for our lives. They are always on, always with us and changing everything, including how we shop and pay. Many brands and retailers have created apps, but driving regular traffic to the app is another matter.
eBay offers consumers access to the world’s largest marketplace from just one app, which is why smart retailers and brands are using eBay as part of their mobile strategy. We partner, never compete, and offer a platform where $20Bn[ii] of global mobile commerce is expected to be transacted this year alone.”
App development facts
As well as the challenge of delivering cut through to consumers, eBay’s research found that careful consideration is required before entering development stage:
• 64% of apps that started development were never finished or rejected by app stores, accounting for £3.19bn of development costs globally
• The average price of a basic app costs £12,000 and more advanced apps are an estimated £55,000
• Updates can be expensive – overhauls to cope with new devices and major operating system upgrades can cost up to 42% of the original development cost, while even basic and partial updates can cost around 17% of the initial outlay