By: Digital Minds
Comments: No Comments.
From traditional marketing to online marketing and from e-commerce to m-commerce, the technology is certainly altering the way we interact around with people and with businesses.
Mobile Commerce or what simply can be referred to as MCommerce is all about making online transactions using mobile devices (laptops, smartphones, tablets, etc.). technically, MCommerce is part of the larger E-commerce industry that include online banking and bill payments.
Now, in this blog, we will exclusively be covering the stats and trends of MCommerce (Mobile E-commerce) and how it is influencing the future of online shopping.
But before we move on to the stats about the Mobile eCommerce and the future shopping trends, let’s just see why you need to keep a mobile-friendly website:
Here are just some incredible statistics you need to know to understand the importance of keeping the mobile-friendly website:
I believe, reading these stats alone is sufficient to highlight the importance of keeping a responsive website. However, to add the agony even more for unresponsive websites, Google has already implemented the “Mobile-First” indexing algorithm a few years back. This is now penalizing unresponsive websites for mobile searches, pushing them down the rank. Simply making it almost impossible for unresponsive websites to compete and sustain.
Now, that you know the growing trend of mobile users, let’s now closely examine the mobile eCommerce stats in 2019 and future online shipping trends.
Mobile e-commerce has been an increasing trend among global shoppers. Users across the world are preferring to shop online using their mobile devices and integrated technology that comes as part and parcel of MCommerce. Now, as we move past the first month of 2020, we are already seeing positive signs from the mobile e-commerce industry, raising excitement to see some powerful development in the industry in this year.
To give you a fair idea of what impacts we are talking about, below we have come up with some stats and shopping trends that will help you understand how mobile e-commerce is changing the e-commerce shopping industry.
In 2019, mobile e-commerce purchases in the USA account for over 40% of all the online sales in the country.
As per the latest statistics from Black Friday 2019; the number of customers using MCommerce to shop online was largest ever. According to some estimates, nearly One-Third of the Black Friday sales last year were completed from smartphones – simply reflecting the rising trend of the technology.
In fact, the pace at which users are adapting MCommerce to shop online, it’s almost impossible today for retailers to ignore mobile optimization of their websites. That’s probably the reason why Google has been increasingly pushing business owners to optimize their websites for mobile devices for quite some time.
Today, almost all major e-commerce platforms offer responsive and smartphone friendly themes, which can be of great assistance to businesses.
Another statistic that establishes the importance of MCommerce is the fact that the number of mobile searches has already surpassed the desktop searches, which simply means that businesses with responsive and mobile-devices optimized sites are in a better position to improve their revenues.
According to the research by Allied Market Research, the worldwide market for mobile payments will grow more than 33% in the next two years; estimating to USD 3,388 Billion.
If you aren’t aware, mobile payments refer to the online transactions that are made using smartphone/tablet-based digital wallets or apps, including Samsung Pay, PayPal, etc.
Today, users aren’t just exploring different mobile devices to shop online, but they are also looking for better and improved mobile payment methods. According to research by Zion Market Research, the market share for different digital wallets is expected to rise to 32% in the next two years.
This is to say, e-commerce stores and retailers need to add digital wallets to their payment gateways, to capture this increasing user segment by offering them easy checkout way.
An unlikely stat shows that while the trend for mobile e-commerce is on the rise around the globe, the conversion rate for mobile users is still lower than the desktop users.
The Q2 2018 conversion rates for desktop shoppers was recorded at 3.91%, whereas, the conversion rates for the same quarter for mobile users remained at 1.61%, which is almost half as compared to desktop conversion rate.
So, what’s stopping mobile shoppers to complete a purchase?
According to one research by Digital Minds, one of the most pressing reasons why mobile shoppers tend to abandon the cart and not complete the purchase is for security concerns.
While, shoppers in the USA and western countries may seem to be confident about the security of mobile payments, in many parts of Asia and Africa, people still don’t fully trust the security of mobile transactions.
This means that retailers and e-commerce businesses can significantly boost their conversion rates by offering shoppers with trusted digital wallets (PayPal, Apple Pay, Samsung Pay, etc.). Integrating these leading digital wallets will lower the fears of users, as they feel more confident to complete the purchase securely.
Another important consideration in this regard for online businesses is to ensure the application of extended validation SSL certificates. By applying the SSL certificate, the URL of your site turns green with a lock icon, representing a safe and secure browsing experience for users. In fact, sites working without SSL or EV SSL may trigger security warnings to users; resulting in a massive loss in reputation and a decrease in sales.
Another major reason for lower conversion rates for mobile e-commerce is that users tend to find it hard navigating to checkout; triggering them to abandon the purchase.
A good step that can help e-commerce businesses in this regard is to break forms into steps/pages, with clear text headlines instructing users for the next step. This will help improve the overall navigation of the site, as well as, improve the conversion rates for businesses.
While optimizing websites for mobile e-commerce is surely important for online businesses, it doesn’t mean they can neglect the importance of other sales channels.
To give a better perspective, according to a detailed study conducted for 45,000 shoppers, less than 10% of those interviewed were online-online shoppers and over 70% of respondents were multi-channel shoppers.
To put it simply, businesses need to adapt to the omnichannel strategy (multichannel). This includes ensuring that your business is equally represented for the target audience – irrespective of their preferred shopping channel. By adopting an omnichannel strategy, businesses will be in a great position to maximize their sales and improve the likeliness of conversion.
The rise of MCommerce is inevitable and the proof is in the numbers. There is no way that online businesses and retailers could ignore the integration of mobile commerce to optimize technology in their business.
By adopting mobile commerce technologies, businesses will be in a better position to offer their target audience with an omnichannel strategy; maximizing their business potential and increasing conversion rates.
Remember, the key to optimization for Mobile E-commerce is to offer users security and better user experience.