The evolution of mobile commerce (m-commerce) has dramatically transformed the retail landscape, making it essential for businesses to understand and leverage this growing trend.
After pandemic, every brick and mortar store businesses suffered via lockdown, strict SOPs etc. on the other hand E-commerce businesses are struggling to fulfill the sales order, resultantly, Global e-commerce sales are expected to $6.4 trillion in 2024. mobile ecommerce sales are expected to account for 54% of total ecommerce sales in 2021.
M-commerce has the potential to become a major shopping channel and to change consumer shopping behaviour. Customers especially online shoppers are dependent on digital devices; smartphone, tablet smart tv and smartwatches. 77% of Americans own a smartphone, Over 230 million U.S. consumers own smartphones and around 100 million U.S. consumers own tablets.
The Rise of M-Commerce: M-commerce involves shopping through a mobile device, typically a smartphone or tablet. This segment of e-commerce has seen explosive growth due to the global increase in smartphone penetration and improved mobile internet accessibility. In 2024, m-commerce is not just an alternative but a primary channel for shopping for many consumers around the world.
Infographics By Go-Globe
Studies predicts m-commerce volume to rise at a 25.5% compound annual growth rate (CAGR) from 2019 to hit $488.0 billion, or 44% of e-commerce, in 2024. And there are two key devices driving the m-commerce revolution: smartphones and tablets. By 2024 over 120,000 stores will be using Augmented Reality (AR) technologies, offering a much richer buying experience .
Numerous easy to use payment options in mobiles devices are also encouraging the customers to buy goods online from their devices. attractive user experience also contributing towards increasing trend in mobile commerce, consumers’ familiarity with how smartphones and other mobile devices work. with smooth navigations in commerce apps Most people know how to navigate to the desired product in just a few clicks. 69% of customers prefer to review a product on their phone than speak with an in-store sales rep.
Key Statistics:
- Global Reach: As of 2024, over 70% of internet users worldwide use mobile devices to shop online.
- Revenue Generation: M-commerce is projected to account for more than 60% of total e-commerce sales by 2025, translating to approximately $3.56 trillion.
- Consumer Behavior: Around 85% of consumers prefer apps over mobile websites due to better user experience and speed.
- High Engagement: Mobile shoppers have a 10% higher engagement rate compared to desktop users.
Trends Shaping M-Commerce:
- Personalization: Advanced data analytics allow for more personalized shopping experiences on mobile, significantly boosting conversion rates.
- Augmented Reality (AR): Retailers are integrating AR into their mobile apps to enable consumers to visualize products in real-life settings before purchasing, enhancing confidence in their buying decisions.
- Voice Shopping: The integration of voice recognition technology is simplifying shopping on mobile devices, with voice-based commerce expected to grow by 30% in the next two years.
- Mobile Payments: The adoption of mobile wallets and contactless payments is on the rise, providing a quicker and more secure checkout process.
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Challenges and Considerations:
- Security Concerns: Despite the convenience, security remains a significant concern for mobile shoppers. Ensuring robust security measures is crucial for maintaining consumer trust.
- User Experience (UX): A seamless and intuitive mobile shopping experience is vital. Retailers must focus on optimizing their mobile interfaces to reduce cart abandonment rates.
- Connectivity Issues: In regions with inconsistent internet access, m-commerce growth is hindered. Addressing these connectivity challenges is essential for tapping into emerging markets.
Challenges and Considerations
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Security Concerns
Despite the convenience, security remains a significant concern for mobile shoppers. Ensuring robust security measures is crucial for maintaining consumer trust.
-
User Experience (UX)
A seamless and intuitive mobile shopping experience is vital. Retailers must focus on optimizing their mobile interfaces to reduce cart abandonment rates.
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Connectivity Issues
In regions with inconsistent internet access, m-commerce growth is hindered. Addressing these connectivity challenges is essential for tapping into emerging markets.
M-Commerce Market
With new mobile phones with better and better technology emerging every year, the number of mobile phone users has gone up. Mobile phones are now the focus of numerous technologies and applications being devised, for businesses and individuals alike all over the world.
Mobile commerce or m-commerce, a form of transaction through mobile devices, has shot up because of the increased number of mobile users. M-commerce is thought to be an efficient way to promote e-commerce.
Personalization, portability, and its widespread presence are the most distinguishing features of the m-commerce market, resulting in its huge potential and remuneration.
More than that, the increase in mobile phone users, internet users, and the growing rate of internet consumption is very likely to be the ammunition behind the growth of the m-commerce market.
People frequently use software and applications such as those for mobile shopping, location, and maps, online news, and purchasing online on their mobiles, be it tickets for traveling or groceries for home.
Many online retailers have now upgraded their businesses to have mobile-friendly websites or applications, which boosted their sales as well as customer base.
M-Commerce vs E-Commerce: What’s the difference?
E-commerce refers to the sale and purchase of goods and/or services online, whereas M-commerce is a subset of e-commerce in that it describes the selling and buying of goods and/or services through a mobile phone
People who shop online via their desktop computers or laptops have diverging needs from those who do so via their mobile phones. M-commerce shoppers need businesses that either have a website that is mobile-friendly or an application that is exclusively for their shopping needs.
Types of M-Commerce
While mobile commerce does include shopping via mobile phones, it is so much more than that. Following are the 4 main types of mobile commerce:
- Mobile Payment Applications
- Mobile Commerce Applications
- Social Commerce
- QR Codes
Mobile Payment Applications
Mobile payment applications are of two types; one that comes built-in mobile phones and the other that can be downloaded by shoppers onto their mobile phones. Using those, they can send money to their family or friends or pay for an online purchase, etc.
Some examples of built-in mobile payment applications are Apple pay, Samsung Pay, Google Pay, etc. Some examples of downloadable mobile payment applications are PayPal, Venmo, CashApp, Zelle, etc.
These mobile payment applications work on the same NFC technology as used for contactless cards.
Mobile Commerce Applications
Mobile phones provide consumers with comfort and ease by being able to open a website or application for their shopping needs without going anywhere or getting up to turn on their computers.
There are different applications available that can be used by customers as per their needs or wants. Such as for food delivery there is UberEats, DoorDash, etc, and even websites such as Amazon have developed their application to boost sales through m-commerce.
Social Commerce
Social media platforms have always been popular since they were introduced. At first, it was a way of keeping in touch but now they are used for the promotion of businesses with advertisements and marketing posts. TikTok, which is the second-most downloaded app, triggered users to spend around $3.8 billion in 2023.
But it's not just about marketing anymore, social media apps have developed to the point where people can buy products from third-party sources without exiting the application.
QR Codes
QR codes are small unique graphic squares linked to a specific site, that can be used by customers to scan for purchase via mobile phones.
QR codes pair well with other types of mobile commerce technology, including mobile banking, digital wallets, or any kind of applications. Even in some places, restaurants have started keeping QR codes for websites that display the menu instead of a printed-out version.
Future of Mobile Commerce
Mobile Commerce started its growth in 2021 with $267.84 billion and has just increased year by year. With technology advancing as it is, and mobile phones getting smarter the m-commerce market is just propelling forward.
The mobile commerce market is currently expected to reach $1.49 trillion at the end of 2024. Not just that but it is anticipated to reach $1.99 trillion by 2029.
Conclusion
M-commerce is more than just a trend; it's a fundamental shift in how consumers interact with brands and make purchases. Businesses that adapt to this change by enhancing mobile shopping experiences and integrating the latest technologies will be better positioned to thrive in the digital economy.
