Mobile commerce has been steadily growing over the years and is projected to reach 43.4% of total e-commerce sales in 2023. With the rise of mobile device usage, the proliferation of m-commerce apps, and the widespread resolution of security concerns, it is essential for online business proprietors to keep up with this trend.
In 1998 Apple introduced the iMac, Microsoft released Windows 98, Google filed for incorporation, the first MP3 player was released, and e-commerce became mainstream. That same year, Kevin Duffey introduced for the first time the term mobile commerce or m-commerce – an event that did not mark significance in the technology world back then. 24 years later, global e-commerce sales have reached 5.7 trillion as of 2022 with reports predicting a peak up to 6.3 trillion in 2023.
Did you know that almost half of these sales are now made through mobile devices? With m-commerce, you can buy anything you want from anywhere, at any time, just by using your phone or tablet. No more waiting until you get home to make a purchase. Several factors are driving this swift expansion, including the rise of mobile device usage and the proliferation of m-commerce apps. As well as the widespread resolution of security concerns. By embracing m-commerce and integrating novel technologies, companies can position themselves for success and stay ahead of the competition.
According to Insider Intelligence, m-commerce sales are projected to reach 43.4% of total e-commerce in 2023, which is an increase from 41.8% in 2022. Furthermore, the m-commerce market size is expected to surge to $488.0 billion, representing 44% of e-commerce by 2024. It is a no-brainer, considering current trends and statistics, that the mobile market will continue to grow. Hence, keeping up with it is essential for online business proprietors. Some of the reasons why m-commerce will be unavoidable in the future include:
Mobile users continue to grow
Mobile browsing offers greater convenience than desktop browsing.
M-commerce sales are ever-increasing
Consumers’ habits are affected by mobile devices
Consumers may look for products on mobile before buying from physical stores
Many mobile devices possess a built-in card storage feature, including Apple Pay, Samsung Pay, and Google Pay, which uses the same near-field communication (NFC) technology that supports other forms of virtual payment such as contactless cards. M-commerce offers an effortless and convenient way to reach a broader audience. Which leads to the creation of a global customer base. As long as a person owns a mobile device and internet connection, they are a potential customer of any m-commerce platform. Additionally, the mobile market presents a stimulus for impulse investment, since consumers are enticed by visual graphics that generate a desire to make spontaneous purchases.
As nearly 92% of individuals who conduct local searches select an option on the first page of results, m-commerce, and local SEO can generate more mobile and physical traffic. Businesses can boost sales by targeting key moments and optimizing their mobile site for local SEO.
M-commerce’s benefits are underlined by consumers’ difficulty in navigating data. Although the graphics, comprehensive product descriptions, and consumer discounts, brands must be cautious when using m-commerce because the initial impression of a mobile website or app is often the basis of customer reviews.
Mobile applications that utilize videos to highlight a product’s key features are more likely to generate increased revenue. Three years ago, one of the biggest Swedish chains/or just IKEA, introduced an AI-driven digital design experience – IKEA Kreativ. Innovative technology aims to inspire customers. It helps them envision how furnishings will fit and function in their homes through lifelike interactive design. Since then, reports have shown customers taking advantage of the app and doing their home shopping entirely online.
Furthermore, IKEA also launched an AI-empowered demand sensing tool analyzing more than 200 data sources in order to provide intelligent recommendations for each product. A big step forward in the accuracy of demand forecasting. When an article stops selling, lowering its price becomes a costly necessity for businesses, especially in the current economic climate. Improved accuracy would lead to less unnecessary inventory, resulting in lower logistics costs. Research shows that in the past couple of years, customers have focused on how sustainable-oriented a business is. Thus, from a carbon dioxide emission perspective, the more efficient a business can be in its supply chain, the more positive impact will be received.
The most significant difference between e-commerce and m-commerce is related to the mobility and portability of the devices used to make purchases. E-commerce typically requires a computer or laptop. Whereas m-commerce allows customers to shop anywhere at any time using their mobile device. Companies advertise their products or services using pictures, graphics, or videos on websites, social media, and other digital platforms in a method called display advertising. It is like having a billboard on the Internet! Mobile screens may not be optimal for displaying ads, and completing purchases can be a bit of a hassle. However, their portability makes them perfect for researching products and brands. Nielsen Norman Group has conducted research on the importance of tasks performed on larger devices. The outcome states:
The data says that people tend to do important tasks on the bigger screen. In cases where the stakes are high and mistakes could have severe consequences, people may feel safer and less error-prone on larger screens.
Security is a contrasting aspect in this comparison. Online fraud often happens through credit card misuse, data breaches, and theft. Fortunately, m-commerce addresses the issue. The Mastercard survey on new payments shows that 94% of consumers in the Asia Pacific region use emerging payment methods such as digital or mobile wallets. QR codes, and even cryptocurrencies to ensure secure transactions. Thus, the security level of m-commerce transactions is better than in e-commerce.
The future of m-commerce appears bright due to the steady increase in mobile device usage and technological advancements. The rise of mobile wallets and innovative technologies like AR and voice assistants are fueling the trend. As consumer behavior evolves, retailers are adapting to remain competitive. Therefore, companies that embrace m-commerce and integrate modern technologies are more likely to succeed. Conversely, an e-commerce enterprise that fails to implement m-commerce is likely to fall behind its rivals.
Read further: News, e-commerce, Icecat, mobile commerce
