Mobile Commerce is the future, and the future is now. Yes, mCommerce is the new normal today as a large number of industries have adopted the ever-evolving mCommerce trend.
According to Statista, mobile e-commerce sales will reach $3.5 trillion with a 72.9% share of total eCommerce sales in 2021 from $1.4 trillion, with 58.9% of total eCommerce sales in 2017.
The trends above clearly suggest that mCommerce has evolved to such a level that no business can outshine the target market without adopting mobile commerce as a key market strategy. mCommerce is a crucial element of sales strategies.
You must have understood what we are to discuss in the article. Yes, we will discuss what is mCommerce and what mCommerce trends will dominate 2021? What are the disadvantages and advantages of mCommerce? We’ll cover these details and more in the following paragraphs.
So, let’s begin with;
What is m-Commerce(Mobile-Commerce)?
m-Commerce refers to when any online purchase, sale, payment of bills, or transaction is made using wireless handheld devices, like smartphones or tablets.
It enables users to access things without wasting time, make payments without standing in a long queue, know what is going around without switching on the TV, and shop their favorite products without visiting a mall or a nearby shop. In simple terms, mCommerce brings the entire material world under your arms.
Even though mCommerce was initially coined in 1997, the last decade has been very crucial for it. mCommerce is evolving by leaps and bounds —thanks to the ever-increasing smartphone users. Indeed, the eCommerce industry is booming, and the growth is primarily driven by the wide range of consumers using their smartphones and tablets to access facilities.
m-Commerce Advantages and Disadvantages
Everything, be it technology evolution or other, is created, developed, or evolved, keeping the wellbeing of life and livelihood. However, we cannot deny the fact that something that comes with lots of advantages holds disadvantages as well.
Importantly, the future of mCommerce, its trends have taken a shift, especially post COVID-19 situation and that may also need to be glanced through. Let’s begin with exploring the pros and cons of m-Commerce for business.
Advantages of m-Commerce
Time-saving: mCommerce enables businesses to deliver faster services and save time for customers. mCommerce makes things easy for customers, whether they want to use it for shopping, make payments, or use it for mobile banking.
Enhanced user experience
Today’s customers like speed, convenience, and comfort. They are also aware of how free handled devices like smartphones and tablets function. Make sure that your business app is capable enough to provide a smooth user experience. Interactive and exclusive content will win the trust of your customers.
As smartphone users are increasing, you can hold a strong place in the new market channel. Around 50% of smartphone users purchase products online. Besides, all the findings, surveys and analysis available online are based on pre-COVID-19 situation. So, the latest data will have different stories to narrate. With mCommerce, you can not just retain old customers but also bring in new buyers.
Google’s report stated, 67% of customers expressed their willingness to purchase things from mobile-friendly eCommerce websites. The same report affirmed that if a website is not mobile-friendly, 61% of customers will move to another website.
When you have quality products and provide an excellent user experience, you will get double benefits —retain old customers as well as attract a new one. When customers get something unique, in terms of products and services, they are likely to share that experience with friends and family —word of mouth will be a robust tool in this case.
Disadvantages of m-Commerce
As mCommerce is on the rise, businesses from all verticals are considering to switch to mobile to attract customers. You will get thousands of competitors in these sectors, though quality products and uniqueness will prevail overall.
Even though people have embarrassed the innovation with at least 3.5 billion (out of 5.3 billion unique mobile phone users), people use smartphones. They are concerned about their security and privacy. When it comes to online shopping, people fear losing personal data, including credit cards and bank account details.
Fast internet is essential to shop online. The slow transmission speed can be a significant barrier and even result in losing customers at large. Internet speed is not constant in every geographical area, and so it can create difficulties for people to take benefits of services in particular regions.
Types of mobile commerce
mCommerce can be categorized into many categories, though there are three main types of mCommerce applications. Let’s explore the top three of them here;
Mobile shopping/surfing app delivery stuff
Mobile shopping is one of the types of mCommerce which enables users to surf products online and place an order for their desired products from their smart devices. For example, food delivery and eCommerce are at the top of this category. Users can order for food and buy their favorite stuff online, on the go.
Mobile is one of the popular m-Commerce types that allow users to enjoy banking facilities, just like online banking. It is even more straightforward and easier for people who love to make transactions and enjoy other banking facilities on the go.
However, mobile banking differs a little bit from online banking. For example, transactions or some transactions may be restricted on the smartphone. The facilities can be utilized using dedicated apps.
You must be aware of PayPal, Google Pay, Apple Pay, or other mobile wallet payment methods that enable users to make payments using their mobile devices. Sending money from one person to another could have never been easy. Users don’t need to use their bank or card details to make payments. They can add money to their wallet and use it whenever they need.
Future of m-Commerce
We have already shared a survey by Statista that narrates the tale of the future of mCommerce with the expectation to hold 72.9% of total eCommerce sales. As smartphone users are rapidly growing, eCommerce will be the largest beneficiaries of this growth.
79% of smartphone users purchased products online in the last six months of 2019, while the number is expected to grow in 2020. Besides, the consumers’ buying behavior has changed due to the ongoing health crisis. Due to the Coronavirus pandemic, people are afraid of stepping out of home, and as a result, they wish to purchase things from eCommerce websites.
Even if the pandemic is gone, the trend will continue.
m-Commerce Trends that will Dominate 2021
As mobile commerce is beneficial for both buyers and sellers, the trend is expected to evolve in the next five years. Here are some of the top trends that are already making news;
Personalized shopping experience
People love to explore personalized products based on their regions, locations, and choices. With at least 61% of smartphone users who wish to browse the eCommerce portal that offers customized products, the businesses providing personalized services will edge over those who do not offer personalized products and services.
According to a Google report, around 27% of smart device users utilize voice search features. Another statistic showed that 46% of people prefer to hear prices of eCommerce products over voice search. 111.8 million people in the USA (which is the third to total US population) use voice search assistants monthly (according to a 2019 report by eMarketer). The facts given here suggest that voice search will prevail over manual search in the coming days and years.
Cryptocurrency is on the rise and will dominate the digital economy in the coming years. Cryptocurrencies like Bitcoin, Litecoin (LTC), Ethereum (ETH) can fasten eCommerce transactions and provide an excellent user experience.
However, implementing the cryptocurrency payment method may be an arduous task in the beginning. It is evident because people may not be aware of cryptocurrencies. You can offer flexible payment options to them to utilize the services at their convenience. Meanwhile, you can run a program to educate people about cryptocurrency.
Augmented reality (AR) and virtual reality (VR) are the next big things in mCommerce. When you allow users to virtually interact with products, they wish to buy will add another dimension. A survey shows that AR will contribute to $120 billion in sales in 2020. AR will enable businesses to provide facilities to customers to try products virtually before they buy.
eCommerce portals with no Social media presence, miss 32% of potential customers. Whereas 55% of customers made purchases online in 2019 after they found the products across social channels. With mCommerce evolution, more businesses will increase their social media presence in the coming years.