Mobile commerce is an approach to use wireless devices such as mobile phones and tablets to buy and sell goods and services. Read below for further information.
Nearly 8 billion people in the world own smartphones, defining how much mobile devices play into daily life. Most of us, especially Millennials and Gen Z, have smartphones attached to our hips 24/7. We are using phones to check messages, emails, and update daily news. Before bedtime, we can watch our favorite TV shows and scroll through social media.
People also use mobile phones to execute the simplest tasks such as payments, weather checking, and getting driving directions. More than that, mobile devices have been commonplace for online shopping. Therefore it’s time for mobile commerce to step in. We will show readers to see the rise of mobile commerce: statistics and trends for 2022.
What is mobile commerce?
Mobile commerce is a method in which people use mobile devices to carry out monetary transactions. It is an advanced form of e-commerce, which enables users to buy and sell products and services online. However, mobile commerce is more than a simple evolution of e-commerce. It also serves as a brand new for innovative industries and markets or even helps existing businesses grow.
- Mobile money transfers
- Electronic tickets and boarding passes
- Digital content and delivery
- Mobile banking services
- Contactless payments and payments through mobile apps.
- Location-based services
- Coupons, loyalty programs, and mobile marketing.
Mobile commerce statistics: Updates 2022
In 2021, mobile commerce has driven e-commerce growth. According to eMarketer (Statista), mobile devices will account for around 73% of all eCommerce sale volumes compared to 52.4% in 2016. This means that three out of four dollars have been spent online shopping from mobile devices. Globally, mobile e-commerce statistics were upwards of around $3.5 trillion in 2021. We haven’t seen any signs of mobile commerce growth slowing down
The number of mobile users keeps rising
According to a report (DataReportal), there are about 5.22 billion unique mobile phone users from all over the world. It represents two-thirds of the whole world population. 80% of them have internet connectivity. Besides, all key metrics of mobile users are rising. They can be the amount of time spent on mobile devices, types of mobile apps and websites visited, etc.
Using mobile devices for purchases is convenient, easy, fast, and safe. According to research by Dynamic Yield, 76% of people prefer shopping online on mobile devices since it helps save time. Besides, they can execute money transfers and payments of funds through their mobile devices. With a tap, snap or scan mobile devices, people can implement their monetary transactions. Thus, mobile commerce has become more frictionless.
According to the Worldpay Global Payments Report (2020), the ratio of financial transactions through mobile or digital wallets is about 40%. This figure is expected to go up to over 50% by 2023. Moreover, people predict the use of debit and credit cards to decline significantly in the coming years under 30%.
Pros & Cons of Mobile Commerce
Advantages of mobile commerce
With dominant users, mobile commerce expands potential sales opportunities. Customers can connect with organizations, and brands through mobile devices.
Gets insights from customer data
Mobile commerce collects consumer data and has better insights into the consumer journey. With brick-and-mortar retailers, customers come to the store, buy products, and leave. There will be details such as statistics, analysis, and even why they buy it. Many retailers use software outsourcing services to build custom apps such as CRM, etc.
Businesses and brands connect with their customers from the moment they visit stores, consider the products, and make purchases. Moreover, brands hire software development teams to create mobile apps that allow consumers and brands to buy and sell products. The software development teams also create custom apps that help brands enhance their customer experiences.
Mobile commerce allows brands to reach their target customers at the right time. Advertising technology based on demographics helps connect with clients at the moment before making purchases. That will increase the likelihood of making purchases.
Fast browsing and transactions
Time is money, business owners find ways to help clients get faster and more convenient purchasing experiences. For example, hospitality providers use software outsourcing services to take reservations or orders to boost customer experiences at their places. Providing faster transactions to customers is the largest benefit, which drives forces behind the development of mobile commerce.
With mobile commerce, shopping on mobile applications is faster than traditional web applications. Many businesses hire software development teams to build mobile apps with functional features. Better user experiences with faster speed have led to a large increase in online sales via mobile devices.
Beneficial to brick-and-mortar stores
Mobile commerce is for sales from online stores but also brick-and-mortar ones. Many customers who go directly to stores will choose an item yet want to read more reviews of products. Therefore, they use mobile devices to discover products, customize colors and sizes, and check stock availability at nearest stores.
For example, mobile commerce helps brands and businesses drive sales in online channels and brick-and-mortar stores. Also, it helps retailers reach a broader set of customers and even business partners.
Disadvantages of mobile commerce
Highly competitive marketplace
Many firms have focused on investment and success in mobile commerce. If you want to start today, there are thousands of competitors. As a business owner, it’s essential to find a target market or a niche market to gain competitive edges.
Ad fraud risk
This is the biggest prejudice in mobile commerce. However, many business owners don’t prepare well to face this ad fraud risk. Over 60% of marketers state that they don’t prepare much on blocking out fraud on mobile marketing strategies.
When customers allow you to access their insights, mobile commerce businesses take on a chance to protect personal information. Companies and any of their business partners support strict user protection conditions. Besides, they have to ensure the transparency of customers’ information.
Not customized connection
People still consider shopping online and mobile commerce as low-personality. Thus, mobile commerce businesses are trying to connect with customers. Giving a personalized message and rewards will be based on their personal information and preferences. It helps create a greater sense of belonging and appreciation.
To solve this problem, mobile commerce plays an important role in enhancing traditional shopping journeys, not as a replacement. Thus, the best way to address both advantages and disadvantages of mobile commerce is to build a mobile application platform or shopping mobile apps. Business owners and brands connect with customers, making your business stand out from your rivalries. Many brands hire software outsourcing services or dedicated software development teams to build their mobile apps for enhancing online shopping experiences.
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List out the mobile commerce trends
We will showcase the 7 latest mobile commerce trends which are dominating 2022. These mobile commerce trends might be related to mobile technology, customer behavior, and market share so you build an effective business strategy.
Mobile apps and progressive web apps (PWA)
This is one of the most outstanding mobile commerce trends in 2022. There are two methods to adapt this mobile commerce trend to increase mobile conversion. First, it’s better to build a mobile shopping app for stores, enhancing mobile traffic and boosting conversion rate. You should optimize the current website to be mobile-friendly with mobile apps or progressive web apps (PWA) technology. It helps bring a website’s interface, loading speed, and a mobile shopping experience.
One-click ordering is an innovative technology by Amazon, the largest eCommerce platform in the world. This mobile commerce trend helps customers to fill in necessary information and payment on mobile commerce. Customers need to click one button, information is automatically filled in such as names, address, email, credit card, etc.
People use social media every day, so it’s easier for products to catch customers’ attention rather than customers visiting websites. This mobile commerce uses social networks to reach target customers and build awareness for brands and businesses.
Voice commerce or voice shopping is the way of using voice commands to shop online and take orders. People can set up voice features in any smartphone or smart speaker such as Apple, Samsung, Microsoft. Thus, these are mobile commerce examples that people will consider.
Another mobile commerce trend is a mobile chatbot or virtual assistant. This mobile commerce trend automatically interacts with customers to make product query conversation more convenient and faster. Mobile chatbots often use email clients, messaging apps, SMS, mobile applications, and cloud networks. Clothes and accessories are mobile commerce examples that you might think of mobile commerce trends.
Augmented Reality and Virtual Reality (AR and VR)
AR helps mobile commerce customers try products or services before purchasing. They can use these products or services on their bodies. Cosmetics brands are mobile commerce examples that can offer lipstick swatches for consumers with their mobile cameras. AR and VR technology boost the chances of customers choosing the right products without going to the store. Thus, these mobile commerce trends will dominate the mobile commerce field in 2022.
Mobile payment is another mobile commerce trend that customers make financial payments for products or services through their mobile devices. Besides, this mobile commerce trend uses mobile payment technology to send money to family members, friends, and colleagues. Venmo and PayPal are some mobile commerce examples that many people use nowadays.
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What are the differences: Ecommerce and Mobile Commerce
It is frustrating to learn new concepts with a seemingly similar concept. Let’s start with distinguishing between Ecommerce and Mobile Commerce. Regarding definition, eCommerce is a general terminology for commercial activities on the internet. These activities will focus on trading goods and services with various components such as information, communication, transaction, payment, logistics, etc.
Amongst these components, the communication aspect plays a vital role in trading. According to a report, 72.6% of internet users worldwide access the website with mobile devices before 2025. Along with an increasing trend, communication is more dependent on mobile devices.
Mobile devices will become the main channel for customers. Thus, mobile commerce, also known as m-commerce, is an inevitable variation of eCommerce. E-commerce focuses on the whole shopping experience on the internet. Meanwhile, mobile commerce follows the customers’ shopping journey on mobile devices.
Indeed, mobile commerce is the future of e-commerce, gradually replacing each other. Sometimes, people can hear “mobile eCommerce” in combination. Mobile commerce aims at increasing customers’ experience on mobile devices for higher conversion rates and revenue.
Mobile commerce is an inevitable technology trend for commerce. As smart devices have become more central to how people communicate and gather information. Mobile commerce will likely be a necessity for e-commerce retailers. Keep in mind that maintaining an effective business strategy requires mobile apps or web applications integrating into other channels. We will give you a whole picture of mobile commerce: online shopping statistics and trends that dominate 2022.
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