E-commerce has been on the rise massively in recent years, but it may not be the next true frontier for shopping as m-commerce continues to become more popular.
M-commerce involves shopping through a mobile device (typically Smartphone), while e-commerce involves shopping online through your computer.
And m-commerce is poised to burst into the mainstream thanks to a host of technological advances that are making it easier for people to shop on their phones. Below we have outlined the road ahead for m-commerce growth and detailed some mobile shopping statistics.
Mobile Commerce (M-Commerce) Statistics
M-commerce is booming, and not showing any signs of slowing down. Within the next two years, it is expected that the majority of purchases will be completed using mobile devices. Mobile continues to play an increasing role in the success of ecommerce. By 2021, mobile ecommerce sales are expected to account for 54% of total ecommerce sales.
- 96% of Americans own a cell phone (Source: Pew Research Center)
- 8 out of 10 Americans shop on their mobile devices (Source: Pew Research Center)
- Mobile commerce is expected to outpace non-mobile commerce in 2021 (Source:Statista)
- Mobile digital advertising spend is nearly double that of desktop advertising spend—$71B was spent on mobile advertising in 2018, while only $37B was spent on desktop. (Source: Journalism.org)
- On Black Friday of 2018, 66% of shopping was done on mobile devices (Source:PixelUnion)
- Mobile wallet market will grow to $5.3 trillion by the end of 2020. Mobile wallets are offering the facility to store credit card details and shipping addresses securely and process the online purchase without re-entering the information. Because of this functionality, users are showing a great love towards these wallets.
Customers’ comfort with mobile shopping has grown, and thus the industry can no longer ignore the significance of mobile in the ecommerce world. According to a study, 70% of mobile searches result in an action within an hour of the search. There are several other benefits of mobile commerce including:
- Improved customer experience
- Better targeting and engagement owing to push notifications
- Personalized content delivery according to shopping preferences
- Reduced cost of operations
Let’s have a look at some of the interesting mobile commerce trends for the future.
Mobile Commerce Trends for the Coming Year
1. Shopping via mobile apps will continue to rise
As mentioned above, the share of mobile commerce in the ecommerce industry will keep on growing with each passing day.
Already, the share of mobile commerce on big shopping events like Black Friday and Cyber Monday have broken all past records. Mobile commerce was responsible for 66% of sales during Black Friday/Cyber Monday. With increased usage of mobile apps, the mobile shopping share will keep on swelling. Not only B2C, B2B mobile ecommerce is also getting bigger and industry is expected to 1.1 trillion in 2020
2. Supercharged and Optimized page load speed
Customer experience is everything in the digital world. Users have a dwindling attention span and are quite impatient. The changing consumer behavior will give way to the growth of fast-loading mobile apps and websites.
40% of users abandon a page that takes more than 3 seconds to load.
According to several industry surveys, it has been established that users tend to prefer buying from mobile apps that are quick to load. The slower an app loads, increased are the chances of abandonment.
3. Crypto payments
Though many people have not yet understood the working of Cryptocurrencies, growth in crypto payments will continue to outpace other payment solutions. Brands will show more interest in introducing Block chain wallets into their traditional processes during the period of 2020-2025. And provide advantages like
- Faster transactions
- Lower transaction cost
- Higher security
- Anonymous tractions, etc.
4. Mart site search & navigation for increased conversions
The easier it is for customers to find products; greater are the chances that they will end up buying something. Mobile websites and apps will continue to improve the customer experience by simplifying navigation, adding dynamic product pages and auto complete features to search option.
If a user can find their desired product quickly on a mobile commerce platform, he/she will purchase thus improving conversions and bottom line.
5. Social media apps for making purchases
Social commerce is the process of directly selling something using social platforms such as Facebook, Instagram, Twitter, etc. With the coming of Instagram Shopping Posts in 2018, the whole social commerce opportunity suddenly seems more lucrative.
According to studies, 51% of millennials are more likely to buy products via social media.
The social commerce trend will pick up speed and impact the entire mobile commerce segment in the coming years, for sure.
6. Technologies are the future of mcommerce
Innovative technologies such as Artificial Intelligence (AI), Augmented Reality (AR) and Virtual Reality (VR) will shape up new shopping experiences for mobile customers.
Using AI-powered smart shopping assistants, AR-based virtual shopping stores and host of other features, mobile commerce platforms can improve the shopping experience which will lead to more sales.
7. Chatbots more conversational
By the end of 2020, about 85% of customer interactions will be handled without human intervention.
Businesses will invest heavily in Chabot development and integrate these AI-powered tools into their customer support process to reap a myriad of benefits, such as:-
- Higher customer engagement level by handling multiple users in real-time,
- Better analysis by gathering user information from the conversation and sharing with the sales team,
- Improved customer satisfaction level by offering personalized options in a conversational manner,
- Better productivity by screening out potential leads, and more.
8. Omnichannel Experience
With a rising competition in the market, nearly 50% of businesses are using about 8 different channels for interacting and delivering customer experience. While this has helped them with creating a greater visibility, it is making it difficult to meet users’ expectation of delivering a seamless experience while switching from one to another touch point. Because of this, the idea of creating Omnichannel retail experience will prevail in the year 2020-2025.
Retailers and business merchandise will bring together both online and offline retailing methods as a single entity, such that users could get a wholesome shopping experience even on changing the communication channel.
9. Enhancement of Voice Search
Like every other industry, voice assistants like Alexa, Siri and Google Assistant will also impact mobile commerce in the coming years. Voice search is turning out to be an increasingly popular way for individuals to perform searches and even buy something on-the-go using their mobile phones.
Voice shopping is expected to grow to a level of $40 billion by 2022, from $2 billion at present.
The changing dynamics and growth of voice search call for a change in the conventional strategies.
Modern eCommerce stores and mobile apps would have to embed voice-activated commands and target voice searches to improve their sales revenues in the future.
10. Mobile Image Recognition Technology
Mobile image recognition technology will change the face of mobile commerce in the coming years. People will be able to search for products via image recognition technology on their mobiles. By just clicking a picture or pointing mobile camera on a product, mobile users will be taken to the shopping page of the respective product.
It would be interesting to see these trends shaping our everyday shopping experiences, making them much more streamlined and better. For the store owners, too, this would mean an increase in sales, resulting in a mature ecosystem. Definitely, the mobile commerce domain is going to see a massive transition from its current model with the growth of new technologies and trends.