The development of mobile eCommerce is moving by leaps and bounds. Find out how it differs from eCommerce and what are the advantages of an online store.
Every day, humanity is moving by leaps and bounds to create innovative solutions that improve the quality of people’s lives. Innovation affects all spheres of life.
However, the biggest and fastest changes are taking place in trade. We see how consumers every day are satisfied with just a huge number of services that are becoming available wherever we are, while developers work tirelessly to create new life-changing solutions.
The biggest changes are taking place in the field of online business. Electronic commerce development started in the 1990s. 30 years ago, Book Stacks Unlimited created the first site where users could buy books online. After 2 years, NetMarket revolutionized and made the first secure payment for services. A year later, the world saw the emergence of Amazon, and since then, the process of prosperity of eCommerce has been unstoppable. After that came eBay, Verisign, Yahoo stores, and many others. By the end of the 1990s, the stores, each of which billed itself as an “online store,” had reached $16 billion in annual retail eCommerce sales.
World of M-commerce
As quickly as eCommerce came into being, so quickly did m-commerce come into existence. In the early 2000s, Amazon became the first to launch a mobile eCommerce site. In 2002, the percentage of online shoppers was 50%. Since then, progress has moved inexorably forward.
These days it is no longer enough to just have a website where users can make purchases. Many people now live at such a relentlessly fast pace that being able to shop wherever they are is a great opportunity. The cell phone has become a tool that allows you to access anything, in connection with which mobile eCommerce is no longer just a whim but an urgent need.
In this article, we will plunge into the world of mobile eCommerce. We will cover each aspect in an accessible and understandable format.
We’ll walk you through the pros and cons, provide you with stunning m-commerce stats, explain the types, and tell you how to successfully run a mobile marketing strategy to make money. Get set! Go!
What is it all about?
To many people who are not well-versed in online shopping, mobile eCommerce may seem just a further development of eCommerce. That is if earlier it was possible to buy something while in front of a computer or laptop, then later it became possible to make a purchase using a cell phone. This is both true and not quite at the same time. It’s something more. This was a breakthrough for the emergence of new opportunities.
Now you can not only buy a new dress or sofa online, but now, using a smartphone, it is possible to carry out the following actions:
- Make money transfers;
- Book and pay for air tickets;
- Select, pay, and receive digital goods;
- Make any payment using technology that allows you to access your bank account and manage any transactions;
- Take advantage of location-based services.
Kinds
The number of commercial services that are available on a mobile phone or tablet is huge. In general, they can be divided into three large groups:
Online Shopping
In this regard, there is no big difference from eCommerce. Ecommerce sites are built with powerful eCommerce platforms that make the process of building an online platform more convenient and rewarding.
Online retailers use services such as Shopify, Magento, Wix, and many more to create an efficient online service available on desktops and laptops. At the same time, mobile commerce is available exclusively on gadgets that are always with us, that is, mobile devices and tablets.
Mobile banking
Previously, you could be paying bills, or paying for other services, using websites on a computer. Now you can do it, even on the way to work, while you are on public transport.
Mobile payments
Now it is not necessary to always have the cash to pay in a grocery store or a clothing store because with the help of a mobile device, now it is enough to bring it to the cash terminal for the funds to be debited from your bank account.
Up-to-date statistics
We can talk as much as we like about what an incredible leap has occurred in the development of mobile commerce. However, to give you a clear idea of the scale of this phenomenon, we have prepared irrefutable statistics that are confirmed by various sources.
- In the UK, mobile commerce sales revenue was £50.35 billion in 2019. After two years, revenue is expected to rise by another £54.92 billion.
- By 2024 in the United States of America, the number of users who shop online will increase to 187 million.
- In the US, the total number of active users using mobile shopping apps on both iOS and Android is 36.7 million.
- The percentage of Gen Z users who use mobile wallets in the US is 44%.
- More than 5 billion people around the world are mobile users.
- 21% of users on average use their phone 5-7 hours a day.
- Two regions have the largest number of online purchases made using smartphones. There are more than 79% in the Asia-Pacific region and more than 60% in the Middle East & Africa.
Positive sides of Mobile eCommerce
If earlier only large players in the market could afford the opportunity to sell using mobile phones, today even small businesses can do it. This is because the cost of the transition becomes more affordable. In this regard, your business can appreciate the following positive aspects:
Improving interaction with customers and providing a better service
If earlier people could not leave the house to make a long-awaited purchase, now you can leave the house, but not to go to the store, but to make a purchase anywhere, wherever you are. In addition, users get the opportunity to view the full range of products and services, filter the search by specified parameters, compare products’ characteristics, and study each product in more detail using high-quality photos. Online shoppers can do this during their lunch break, lying on the couch at home, at a friend’s house, or even while traveling.
All you have to do is take your phone out of your pocket, open the mobile app and choose what you need.
If we talk about the advantages in comparison with eCommerce, we can note the following advantages:
- It is unlikely that you always have a computer or laptop at hand, while the smartphone is always in your pocket. In this regard, you can make purchases 24/7.
- Thanks to email newsletters, push notifications, and SMS notifications, users can receive news and updates much faster.
- Given the location, customers can receive interesting personalized offers and content that may be of interest to them.
Increasing audience reach
Looking at the statistics, we can say with full confidence that the indicators, volumes, and number of users will only increase. In this regard, every business that is looking for methods to increase audience reach should become part of this transition.
Using a new distribution channel
There is an opportunity to use a new distribution channel to get closer to customers. By having a store, an eCommerce website, social media platform accounts, m-commerce apps, or mobile sites, you can bring users even closer. This is a way to improve communication and a seamless shopping experience.
This experience means you can meet potential buyers where they can be found most often. What’s more, the process of acquiring goods and services is becoming much faster than ever before.
Variety of mobile payment options
The process of making a purchase and payment becomes much easier because it becomes possible to provide smartphone users with payment using various payment systems. There is no need to mention that there are many payment options. They can be added so that customers do not experience any inconvenience.
In addition, modern methods do not require the user to perform additional actions. That is, you do not need to register, log in, and enter payment information. Users just need to enter the data once, after which further payment will occur automatically. They can choose a method, click pay, and voila – the order is placed.
Negative sides
Every phenomenon, thing, product, or commodity that exists in the world has both advantages and disadvantages. There is nothing perfect in the world. In this regard, pay attention to the following negative aspects:
The need for continuous improvement
Many people find it inconvenient that to examine something in detail, it is necessary to enlarge the image many times over. In this regard, viewing content on a computer has an outweighing advantage. The size of a laptop or desktop computer display is much larger than a smartphone screen. That’s why a business must constantly improve the ways of presenting information that would be easy to view and understand.
If for the younger generation this does not cause any problems, then the older generation experiences a lot of difficulties. Young people can even watch movies and various video content, while the older generation is more likely to choose a laptop or PC for that.
In addition, you need to constantly check the download speed. If you miss this aspect, you can lose lots of customers.
Too many payment methods
As mentioned earlier, a wide variety of payment methods is an advantage. However, at the same time, this can be a disadvantage. Various methods may be indicated in mobile apps or mobile websites. However, some of them may not be available in some locations.
Let’s imagine the situation. You come to the store to buy coffee. You come to the right department and see that there are a huge number of different options. Also, you see that there are coffees from Germany, Belgium, Finland, and Switzerland. There are ground and soluble, various degrees of roasting, aroma, large and crushed grains. If you’re not an expert on coffee types, then you’re more likely to give up and head to the store, where there are only a few options to make your selection quicker.
This analogy works great for a variety of payment methods as well. In this regard, many businesses prefer to offer customers only a few options for the most popular payment methods.
Consumer distrust regarding payment security
Now smartphone users are particularly concerned about the security of payment, as well as data leakage. It’s very common for news headlines to feature headlines about how users’ personal data is being leaked online, or how even cars can leak personal data.
In this regard, the number of users who do not shop online is quite impressive. More than 25% of users show distrust. In this regard, every business must be in good standing for customers to consent to the processing of personal data.
Effective promotion methods
Following trends may be the only way to compete. If you carefully study the current trends, read the opinions of experts and, in general, have a thorough knowledge of the field of activity, then you can be one up on your rivals. The following effective ways will help every business thrive:
Bet on functionality over design
No one says that it doesn’t matter how retail apps or mobile websites will look. Rather, it is important to pay more attention to the functionality of the application. It’s undeniable that first impressions are of the utmost importance, but if behind a beautiful picture there is a terrible and unusable functionality, then you can forget about success.
In this regard, it is necessary to pay special attention to mobile site optimization. If you can ensure that the user can complete the target action without difficulty, while the mobile site will have a pleasant and user-friendly design, then this is a guarantee of success.
Create unique and interesting content
Being engaged in retail, you can simply sell goods and do nothing else. However, if you interact with users through content creation, then the likelihood of having loyal customers increases.
Now we are witnessing the unconditional leadership of video content among other types. In this regard, if you rely on the production of such content, you can become closer to buyers. You can create a welcome video, videos that help clients understand the functionality or a selection of positive reviews about the service.
All in all, it is necessary to produce an original product. You can shoot many short videos, which can later be combined into one story.
Focus on S-Commerce
About 45% of users use social networks to find information about brands. In addition, users spend most of their time on social networks. Therefore, it would be foolish to miss the opportunity to offer users the opportunity to buy a product or service without even leaving the social platform.
In addition to the opportunities provided by the most popular social networks such as Facebook or Instagram, check out Taggshop, Pinterest Shopping, or Amazon Live. Multiple channels are better than none.
Don’t discount your offline presence
Given how popular online stores are, it may seem that offline stores no longer count. This is far from true.
You can resort to one technology to improve customer service. Customers can view the range of products on the site, examine the characteristics and compare products. After that, they can pay for the order, and later pick it up in the store. This is especially convenient during the holidays and the sales season when there are problems with the delivery of goods to the buyer’s home.
Use chatbots and virtual assistants
It is difficult to provide customer support within 24 hours because the number of online consultants must be huge. However, continued support is critical. When users leave a message to an online consultant after business hours, they have to wait until the next day to get a response.
This fact can play a sharp decline in mobile eCommerce sales. In this case, mobile chatbots and virtual assistants are indispensable assistants, which can provide support 24/7.
Attract users with discounts and loyalty programs
Customers love discounts and great deals. You can often see banners on store websites such as Bountii, stating that when you install an application, you can get a 10 percent discount on your first purchase. Who would turn down the opportunity to buy a product at a reduced price?
In the same way, the loyalty program works, according to which users can accumulate points for online purchases, and then exchange them for pleasant bonuses. Each of these methods creates an excellent online shopping incentive.
Use high-end technology
Augmented reality can make an incredible impression on customers. The very possibility of trying something on without going into the fitting room is truly amazing. This saves a huge amount of time for users who will truly appreciate such care.
To sum up the mobile eCommerce trend
The sphere of trade can be characterized by rapid growth. We already see how mobile eCommerce is developing by leaps and bounds.
Cell phones provide their users with limitless possibilities. The number of mobile users will only increase. That’s why we can say for sure the number of mobile eCommerce sales will grow exorbitantly in the following years.
However, it is not so easy to please customers by simply creating a mobile site or application, it is necessary to continuously work to improve the quality of service, as well as keep up with the times and follow current trends.
