During the sales season, we have all been receiving promotions and offers on our mobile phones. This morning, I didn’t have time to check out some interesting items from my computer, so I did that from my phone. And I ended up buying some t-shirts. I am not the only one; a growing number of people are using their mobile phones to browse some items and purchase them. This article will discuss the different elements of Mcommerce, and explain why consumers are loving this option. Let’s discover them together..
Mcommerce, the new shopping experience
Most of us know that ecommerce grew at a very fast pace. But today, Mcommerce, a subsection of ecommerce, overgrew it massively. Mcommerce (or mobile commerce), is composed of all the buying and selling transactions of products and services on mobile devices (phones or tablets). So, it basically comprises the complete online shopping experience. Between 2013 and 2016, this branch of online shopping grew 42% annually, 300% faster than ecommerce. Denmark had the highest mcommerce annual growth of 55% during that same period of time.
Retailers today have to adapt their content and the shopping experience they offer, to the smaller screens of mobile phones and tablets.
Implementing this responsive design is a very important step to take in the online commerce area. It is even considered to be a competitive advantage. Indeed, large retailers and even smaller ones are adapting to this growing phenomenon. Amongst the 10 biggest Mcommerce retailers, we find Amazon, Apple, Google play and Walmart. In 2014, mobile commerce generated around 17 billion US dollars for the e-commerce giant Amazon.
Shoppers are all about this new phenomenon that makes their lives easier and their shopping experience more pleasant. China is the country with the highest number of mobile shoppers, making up to 68% of its population, which is huge. The average order value of online shoppers varies a lot depending on the category of goods and services. It goes from $212 for computer, TV and multimedia goods, to $148 for home and furniture products, and $41 for flowers and gifts. As opposed to any stereotype that might exist, men spend more money online than women on average. Men spend $120 per order on average, compared to $96 for women. As a lot might have guessed, men spend the most of their money on sporting goods (24.5%), while women spend it on apparel and accessories (28.7%).
This amount of online shopping requires a perfect handling of money. Indeed, the three main mobile payment apps managing the transactions are Apple Pay, Paypal and Google wallet. In 2013, PayPal handled around 30 billion US dollars only in mobile transactions. That’s immense.
Top 10 reasons why M-commerce is the consumers’ preferred choice
- Payment is more convenient
- Payment is faster
- Payment is easier than by using cash/card
- Storage of details
- Instant payment confirmation
- Payment process made simple
- Innovative way to pay
- Option to use offers/discounts/coupons
- Easier to keep digital receipts for returns/exchanges
- No need to share financial details with the merchant
Where is Mcommerce heading?
It is predicted that Mcommerce continues to grow more and more. According to Forrester, Mcommerce will see their sales quadruple. Retailers, of all sizes and structures will develop and expand more their mobile platforms, to make it perfect and attract more consumers. This is explained by the fact that people have less time to use their laptops or desktops, and are using their mobiles instead. The average American person spends 34 hours per month on their smartphone.
There are different trends that are emerging, positively affecting the use of mobile, such as mobile cloud, mobile beacon, wearable revolution, connected devices linked to a smartphone, and mobile payment systems. The more consumers are using these tools, the more these trends are growing, leading to a bigger success for mcommerce.