The eCommerce market has experienced tremendous growth over the past five years. Much of this can be attributed to mobile commerce, or m-commerce. According to eMarketer, eCommerce as a digital category was largely driven in 2021 by m-commerce. Mobile is expected to account for about 73 percent eCommerce sales .
Two trends are responsible for this significant growth. The first is the rapid growth in mobile users. The world has 5.22 trillion unique mobile phone users, which is two-thirds the global population.
Convenience is another key driver of m-commerce’s growth. According to eCommerce personalization company, Dynamic Yield more consumers use mobile devices largely because of its convenience.
These trends will continue to show that m-commerce will be around for the long haul. Mobile devices are central to our business and have revolutionized how we shop, communicate, and conduct business.
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Definition of mobile commerce (mcommerce)
Mobile commerce, also known as m-commerce or mobile commerce, is a subset eCommerce that allows commercial transactions to be conducted via handheld devices. With mcommerce, customers can conduct transactions anywhere they have access to a wireless internet service provider (internet service provider), and a charged mobile phone. This has resulted in more shopping opportunities for consumers.
Mobile transactions can be done in a matter of seconds, while eCommerce transactions that are completed via a desktop interface may take longer and more complicated.
Understanding mobile commerce is important. There are two major differences between eCommerce and its handheld counterpart. Mobile devices are optimized for speed and convenience, while eCommerce is focused on the shopping experience.
Although technically they are different, the future for eCommerce is in m-commerce’s rise. The latter is expected to soon overtake the dominance of the former. If you own an online business, this trend is something you should not ignore.
Three types of mobile-first Commerce
Three key categories can be broken down in M-commerce. These include mobile shopping and mobile banking.
01. Mobile Shopping
This commerce umbrella allows customers to buy products from their mobile devices via an eCommerce website or mobile application. App-based commerce is a rapidly growing subcategory in mobile shopping.
02. Mobile Banking
Mobile banking is exactly what it sounds. Mobile banking is the execution of financial transactions via mobile technology by customers who are on-the-go. This happens typically through a dedicated, secure app that is provided by a global bank institution.
03. Mobile Payments
Users can use mobile payments to purchase products in person using their smartphone. Customers can purchase items using digital wallets such as Google Pay or Apple Pay.
Mobile commerce has many advantages
There are many benefits to m-commerce, but none more important than the ability to reach new customers or existing customers.
Coupons and discounts can be sent instantly from retailers to customers. Personalized shopping experiences can also help brands connect with their audience.
Brands can increase sales online and offline with m-commerce. Customers can visit physical stores from their mobile phones while engaging with online-first capabilities such as customer reviews and comparison shopping . This helps to enhance the customer journey.
Other benefits include customer insight, faster browsing and transactions, as well as increased customer engagement.
Brands with brick-and-mortar stores can benefit from consumer data and insights. They can establish a relationship with customers as soon as they enter a store.
M-commerce’s biggest driver is convenience. M-commerce allows for faster transactions, such as one-click purchasing and mobile payments.
Advanced technology, such as a PWA Storefront, can transform your website into an app-like interface for brands that do not have a mobile app. This is crucial as slow-loading websites can quickly turn off online shoppers.
Summarising, m-commerce is a popular shopping option because it offers more user-centric shopping experiences and faster delivery.
Mobile commerce has its disadvantages
M-commerce has become a powerful tool for companies, and they have shifted their strategies and resources to the mobile market. Despite its growing popularity, there are still many challenges.
Ad fraud risk is the greatest threat to m-commerce. Most businesses are not equipped to handle it properly. Mobile marketing fraud risks can be managed by first ensuring compliance with Media Rating Council standards and Trustworthy Accountability Group standards.
E-commerce businesses face the same challenge of protecting customer privacy. Businesses have an additional responsibility to protect sensitive data and information that customers provide while shopping online, often unknowingly. Businesses must adhere to strict user protection terms in today’s market and be transparent with customers about the data being collected, stored, shared, and sold.
Mobile commerce examples
01. Mobile Apps
According to research, today’s customers use their smartphones to shop and very rarely go to a brand’s site from a mobile browser. Statista’s study found that 85% of online shoppers prefer mobile apps to mobile browsers.
Mobile users are most likely to download retail apps if they have access to coupons and other special offers. Loyalty and reward programs are the second incentive for shoppers to download your app. These not only encourage them to come back to your store to purchase future products, but also influence shoppers to download it.
Now is the best time to get a native mobile app for your eCommerce business. Wix has a branded mobile app solution to help you with this.
02. Order in One Click
One-click ordering was invented by Amazon. It allows online shoppers to shop quickly and easily. One-click ordering allows you to click one button, and all information will be automatically filled out on checkout forms using customer data.
One-click shopping is all about convenience. This saves time and makes the checkout process more intuitive. It also reduces the likelihood of abandoning carts.
03. Social Commerce
Mobile users access social media on a daily basis. This makes it easier for you to attract customers there than on your eCommerce website.
The social commerce buying process is made seamless by social media platforms like Facebook and TikTok. This popular platform has made it easy for consumers to make direct orders from merchants, without leaving the comfort of their smartphone.
In 2022, eCommerce companies should expect that more people will be looking for direct sales through social media content.
04. Voice Commerce
Voice shopping is also known as voice commerce. It involves using voice commands to place orders online, shop, and order instead of typing, or even making in-store purchases. The built-in voice feature can be used on any smartphone or smart speaker assistant product such as Apple, Samsung and Google.
Some estimates show that global consumer retail spending via chatbots will reach $142 billion in 2024. Customers expect 24/7 customer service and sales representatives. This is fueling this demand. Merchants need to respond by using chatbots and virtual assistants for customer service and questions. Wix Chat is one tool merchants have access to in order to satisfy consumer needs.
06. VR & AR
The eCommerce market continues to see virtual reality (VR), and augmented reality, (AR) gaining traction, particularly with the introduction of filters in the beauty industry or try-on technology in the fashion world.
AR and VR enable brands to recreate the real-world experience of physical stores. This reduces the risk of lost sales and returned products.
07. Mobile Payments
Mobile commerce is booming with Apple Pay supported by Wix eCommerce and Android Pay, which allow customers to make purchases online without the need to swipe or carry cards. Mobile payment technology is also being used to send money from one mobile device to another. Venmo and PayPal are two mobile payment options that enable users to send money to family, friends, and colleagues.
Do you need an m-commerce strategy
Although the potential for m-commerce is greater than ever, it’s still difficult to effectively take advantage of its growth. A clear strategy can help you stand out from your competition in the coming years. This starts with the right marketing partners and technology partners that can efficiently expand your audience in a privacy-safe and consumer-friendly environment.
Mobile shopping is another area of opportunity. Mobile shopping is not only restricted by security concerns. Many consumers also point out poor website design, such as too few links and pages, as a barrier to their mobile shopping experience.
M-commerce is just one aspect of your business. Most eCommerce retailers are successful because they adopt a customer-first omnichannel retailer strategy which ensures that their mobile real estate supports other sales channels. Your m-commerce strategy must be mobile-friendly and meet your customers at their point of purchase.