Mobile Commerce: Definition, Stats & Trends
M-commerce, or mobile commerce, refers to shopping using a mobile device (usually a smartphone), whereas e-commerce refers to shopping via a computer. Nowaday, mobile commerce is expected to increase at the fastest rate, beating both traditional ecommerce and in-store shopping.
The rise in mobile device ownership is driving the growth of mobile commerce. Consumers are increasingly using their smartphones to shop, and mobile commerce expenditure is expected to reach significant levels in the near future.
This blog will explore the definition, statistics, examples, and trends of mobile commerce. Let’s get started!
What is Mobile commerce?
M-commerce (mobile commerce) refers to the purchase and sale of products and services using wireless handheld devices like smartphones and tablets.
Furthermore, Mobile commerce is a type of e-commerce that allows consumers to shop online without using a computer. In-app purchase, mobile payments, virtual marketplace apps like the Amazon mobile app, and digital wallets like Android Pay, Samsung Pay and Apple Pay are all examples of M-commerce.
Examples of Mobile commerce
People can conduct business, make transactions, and analyze financial data while on the road with mobile commerce. Individuals can only do business in person or via a landline telephone at one time.
These limits have been removed thanks to mobile devices such as smart phones and PDAs. Therefore, it’s not difficult to identify examples of mobile commerce in everyday life.
Mobile Banking
Mobile banking is a popular type of mobile commerce. Because it allows customers to check current bank account balances from any location. In addition, many banks offer a free text message.
Therefore it allows users to check the balance. Furthermore, Smartphone apps provide alerts when funds are running low and allow users to send money without having to go to the bank.
Mobile purchasing
Customers can shop on their smartphones in the same way they would on a PC. Besides that, customers can buy things via a mobile Web browser or one of the many apps available for download from online shops.
For example, TextBuyIt, an Amazon service that allows shoppers to check out using text messaging. Moreover, iPhone users may use the Starbucks Card Mobile App to pay for coffee at more than 1,000 Starbucks stores without having to dig through their wallets or handbags.
When mobile wallets and credit cards become more popular, internet giants such as Google and Apple are gaining traction in the payments market.
Google Pay has been updated for Android and iOS users, and now covers bank and savings accounts thanks to a partnership with Citi and Stanford Federal Credit Union. The improved Google Pay app’s focus on money management tools could be a significant customer acquisition benefit.
Amazon Pay may be customized to other markets as a mobile wallet and online buy button. Therefore, it allows the company to build an audience around a payment tool.
Mobile Investment
Because the stock market is continuously changing, investors frequently perform trades and check stock prices using their mobile phones.
Furthermore, many smartphones come with stock-tracking programs preinstalled. Additional functionality is provided by third-party applications. Therefore, a stock broker is simply a phone call away when it comes to purchasing or selling shares.
Advantages and disadvantages of mobile commerce
Advantages of mobile commerce
- Increased customer retention by making it more accessible.
- Customers will be able to compare pricing, read reviews, and make purchases without having to use a desktop computer.
- A wider range of products and services are available.
- Automates a company’s customer contact and sales points.
Disadvantages of mobile commerce
- Customers may be discouraged from making purchases if the mobile experience is badly implemented.
- Mobile payment alternatives are not available in every geographic location. Moreover, some digital wallets may not be supported.
- Businesses must be aware of and follow to the tax laws and regulations of every countries to which they export
M-commerce Statistics
According to Insider Intelligence, Mobile commerce volume will grow at a 25.5 percent compound annual growth rate (CAGR) from 2019 to $488.0 billion in 2024, accounting for 44 percent of all e-commerce. Smartphones and tablets are the two main gadgets driving the Mobile commerce revolution.
Despite poor conversion rates with having to check out on a small screen, smartphones have been the main driver in Mobile commerce growth. In 2024, US volume is expected to rise from $128.4 billion in 2019 to $418.9 billion.
Using tablets that are smaller than using smartphone Mobile commerce volume. However, it still plays a significant role in Mobile commerce’s success. According to Business Insider Intelligence, tablet spending will reach $29 billion in 2019, rising to $69 billion in 2024, representing an 18.9% compound annual growth rate.
Mobile commerce trends
Progressive Web Apps
PWAs, or Progressive Web Apps, are one of the most important mobile commerce trends in the e-commerce business. Online retailers are constantly attempting to increase profits and improve the client experience in their online stores.
For the past few years, brands have already designed their websites with smartphones in mind. Besides that, the development and launch of native mobile apps can be costly. Therefore, more brands will use this mobile commerce trend to give a better, faster mobile experience while still using a browser.
Apps for Shopping on Mobile
The increased use of mobile apps for shopping is one of the most important mobile commerce developments. Consumers are increasingly using their mobile devices to make online purchases. You should have a mobile-friendly website. However, having a mobile-friendly e-commerce site is no longer enough to succeed in this market.
Additionally, more than half of US buyers used a mobile app to make their purchase rather than using a Web browser.
Moreover, Mobile apps and mobile sites can be accessed from a variety of devices by online customers. Mobile devices divided into two types: smartphones and tablets. Because tablet sales are down, smartphone sales are increasing. However, these are the devices that customers use to shop on the internet.
One-Click Ordering
Another one of the mobile commerce trends to look for is online ordering! The trend to mobile apps for purchasing will make the checkout procedure easier. Historically, placing an order online required a lot of information from the customer.
Consumers must supply a lot of personal information to complete transactions on an e-commerce store:
- Name of the customer
- Credit card number
- Expiration of your credit card
- Number for card verification
- Address for delivery
- Email address
Therefore, Shopping carts on mobile sites has abandoned rate of 97 percent. Mobile apps, on the other hand, only have a 20% abandonment rate. Because customers can finish the entire purchasing process using this mobile commerce trend.
Social Commerce
Customers have a much more direct way of buying items they see on social media thanks to shoppable Facebook pages and Instagram shoppable posts. Instead of having to open a new browser, visit your website, and search for the product on their own, customers may simply click on the product to buy it.
More brands will collaborate with social media sites for advertising and to integrate e-commerce transactions. Consumers can scroll, purchase, and contact their friends and preferred brands. Moreover, shop owners will invest more in social apps that allow them to do e-commerce transactions.
Voice Shopping
Online store owners shouldn’t overlook the growing trend of voice shopping. Voice search is rapidly integrating into e-commerce, with significant growth expected in the near future.
This rise is fueled by the high adoption rate of voice search, with a large portion of adults using it daily and a substantial number relying on it for product research on mobile devices. While voice shopping for purchases is still emerging, it holds significant potential for the future of mobile commerce.
To begin, make sure your website is voice search optimized. However, it will be great if you planned to make your mobile app voice-friendly as well. Voice search and voice help are available on mobile devices even if the user does not own a smart speaker.
Mobile Chatbots
On the website, you might already be using chatbot technology. It’s one of the most effective ways to deliver customer care, and its popularity is growing.
Currently, most apps on the market do not include chatbots, but this will change. When customers go to an online store, it’s not uncommon for them to require assistance.
Furthermore, if a chatbot saves them time, more than half of online customers will select it over a human representative. As a result, many e-commerce websites already include this feature.
Getting queries or problems answered as soon as possible will improve the client experience. Mobile commerce chatbots will continue to gain in popularity in the future. As a result, this mobile commerce trend will be one of the most important mobile commerce trends.
Augmented Reality(AR) and Virtual Reality(VR)
For a long time, the terms virtual reality and augmented reality have became common words in the tech world. AR is already being used in mobile shopping apps to boost the client buying experience.
Some brands attempt to provide consumers a view into how an item would suit. Augmented Reality (AR) has grown in popularity. Assume you have an e-commerce store where you sell clothing.
You can utilize AR to measure customers and recommend the best match with a retail mobile app. For example, Many Amazon products include the “See how it looks” option. Therefore, customers can scan an area in their home with their mobile devices.
This technology has a lot of opportunities, which makes it one of the most interesting mobile commerce trends. Consider the possibilities!
Mobile Payments
Mobile wallets have grown in popularity over the last few years. This is true for both in-store and online transactions.
When shopping via a mobile retail app, customers can use mobile wallets like Apple Pay, Google Pay, or Alipay to pay. It’s a convenient, safe, and secure method of shopping for them.
This is one of the m – commerce trends you need to consider if you own an online store.
Mobile Fraud
Cybercrime has become a big problem in recent years. Consumers are hesitant to give personal information to third parties who do not have a well-established reputation as a trustworthy brand.
For smaller e-commerce businesses, a lack of consumer trust can be a challenge. Assume you’re selling items that are identical to well-known brands. In that situation, a buyer may feel more at ease purchasing from a well-known brand. As a result, every e-commerce shop must protect itself from fraud across all channels, including mobile devices.
Therefore, apps are also more secure. As I mentioned above, customers do not have to manually type their payment details for each purchase. To prevent customer and payment data from a possible attack, an app can securely store it.
In comparison to a mobile browser, a mobile app is more safe. As a result, using mobile apps will be one of the most important mobile commerce trends.
Conclusion
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