M-commerce in 2023: All you need to know

M-commerce in 2023 All you need to know

Breaking Down M-Commerce: Statistics, Trends and What to Expect as Ecommerce goes Mobile

If you’re one of the world’s 6.378 billion smartphone owners, you’re undoubtedly already aware of how important your smartphone is in your daily life.

The majority of us, particularly Millennials and members of Generation Z, always have our cell phones close at hand. We get up and check our phones for messages and emails, as well as to catch up on the daily news, and we use them before bed to watch our favorite TV series and cruise through social media.

During the day, we also use our cell phones to do even the most basic things, like pay bills, check the weather, and find out where we are. Mobile devices have, however, recently grown in popularity as a platform for internet purchasing, and here is where mobile commerce comes into play.

Mobile Commerce: What is it?

Any financial transaction carried out via a mobile device, like a smartphone or tablet, is referred to as “mobile commerce,” or “m-commerce.”It’s a step forward for online shopping because customers and business owners can now do business with each other no matter where they are, as long as they have a mobile phone or tablet.

However, mobile commerce goes beyond being a straightforward development of electronic commerce. It has also led to the creation of new markets and services or helped grow ones that were already there, such as:

  • Mobile money transfers
  • Electronic boarding passes and tickets.
  • Delivery and purchases of digital content.
  • Banking
  • Offers in-app purchases and contactless payments.
  • Services are based on location.
  • Coupons, loyalty programs, and mobile marketing.

Various Forms of Mobile Commerce

Even though m-commerce includes many different kinds of transactions, they can all be put into one of three groups:

1. Shopping on Mobile

Most of this resembles e-commerce but is available on an iPhone or Android device. There are a variety of ways to shop on the go now, including social media sites, shopping applications, and mobile-friendly websites.

2. Mobile Banking

Although there aren’t many differences between mobile and online banking, some transaction types might be restricted or prohibited on mobile devices. Although most banks require their customers to download a specific app in order to do banking on the go, others have begun testing the usage of chatbots and messaging apps.

3. Using a Mobile Wallet

Because there are so many ways to pay with a mobile device, we’ve decided to talk about each one in more depth in the next part of this article.

The rest of this post will focus on the shopping and payment parts of mobile commerce since these are the parts that you are most interested in.

Typical Advantages of Mobile Commerce

Until recently, bigger businesses like Amazon and Walmart may have been the only ones with the choice of developing mobile apps and moving to mobile-friendly platforms. However, as the cost of becoming mobile declines, more and more businesses are able to benefit.

If you own a business, no matter how big or small, you should read on to learn about the ways in which mobile commerce can help you succeed.

1. Enhanced overall client experience

E-commerce has already marked a significant advancement in how we shop. Customers would benefit from being able to shop from the convenience of their own homes, as they would be able to browse a broader selection of products, compare prices in a short amount of time, and avoid the hassle of going out in the cold.

But today, consumers may still perform all of these tasks, and they only need a smartphone in their back pocket, not even a desktop computer. Also, because of how it works, m-commerce gives you some options that you can’t get with e-commerce:

Laptop computers can be taken anywhere, but a customer probably won’t have their laptop with them all the time. But m-commerce makes online shopping much more convenient since most people never leave the house without their smartphones.

Reachability: Online businesses are able to reach a wider variety of customers, even when they are travelling, thanks to the ability to send SMS push notifications to customers.

Location-tracking: E-commerce apps and online shops can use Wi-Fi and GPS to find out exactly where a user is. This lets them deliver content that is tailored to the user’s location.

2. Incredible potential for expansion

Even though there are already a lot of people using mobile commerce, the industry is still growing. By 2021, it was thought that 6% of all retail purchases in the US would be made through mobile e-commerce. Statista, on the other hand, predicts that by 2025, m-commerce sales will account for nearly 10% of total US retail sales, a 7% CAGR increase from 2018.

3. A genuine omnichannel encounter

When you sell your products in-store and online (through your own e-commerce website, Amazon, eBay, Instagram, etc.), this is called omnichannel commerce. Customers will always have a good time when they interact with your brand, no matter where they do so.

But more than that, designing an omnichannel experience means going where your customers are and making it simpler for them to make a purchase.

Since most of your customers are likely to always have their phones with them, mobile devices are the best platform for omnichannel commerce.

4. A selection of payment methods

Emerging mobile payment methods have made it possible for payment methods like Apple Pay, PayPal One-Touch, Visa Checkout, and Amazon Pay to make shopping easier.

Nowadays, a lot of e-commerce websites provide one-click checkout options, which let users enter their payment information just once and then use it each time they make a purchase after that.

Challenges with Mobile Commerce

1. Ongoing need for improvement

Even though mobile commerce is growing, we must not lose sight of the importance of desktop commerce. In actuality, the desktop still has a lot of benefits over mobile.

Retail TouchPoints reports that the average conversion rate for desktop devices is 3.9%, which is more than twice as high as the 1.8% average rate for smartphones.

Given that tablets had a conversion rate of 3.8% while other devices with smaller screens (such as smart watches) had a rate of only 0.1%, the difference is most likely due to screen size as opposed to mobility.

Also, when it comes to ordering value, desktop PCs are way ahead of mobile devices. Statista says that in 2019, smartphones made the same amount of money from e-commerce as desktop computers, but only 64% of people who went to retail websites did so on a smartphone.

Therefore, optimizing for mobile commerce is clearly necessary.

You will need to be knowledgeable about the most recent technology and applications as consumer behavior changes in order to make sure that your online store is not just mobile-friendly but also quick, simple, and intuitive to use.

2. A range of payment options

Even though there are many ways to pay, not all payment platforms and mobile wallets are available in every country. Also, people in different countries often prefer certain payment methods over others, which makes it harder for online stores to do business internationally.

Even though you would believe that adding more payment alternatives would make mobile usage simpler, sometimes less really is more.

In fact, a study from the year 2000 found that offering too many choices for a product often leads to a drop in sales and customer satisfaction.

So, you should figure out what the best mix of payment options is for your business and the areas you serve. It could seem challenging at first, but as you learn more about your consumers and their tastes, the ideal payment alternatives for you will become clear.

3. Customers may compare costs more easily

One of the drawbacks of making it simpler for users to use mobile devices is that it makes it much simpler for buyers to compare prices across a range of retailers. Customers may easily compare prices for similar products from your company and 10 others online in just a few clicks, and they frequently do so in an effort to pick the best deal.

So how can you stop it? by being aware of how you compare to your competition, just like your customers. Keep an eye out for when competitors change their rates and shipping costs and be prepared to respond.

4. Client Security

A survey by Forrester found that 14% of smartphone users were worried about their personal phone information being sold to third parties and that 30% of smartphone users don’t use mobile payment systems to buy things online because they don’t feel safe doing so.

Because of this, e-commerce companies have a greater need to protect and manage the personal information of their customers when they give them access to it through their mobile devices.

A larger range of laws will need to be followed, but you’ll also need to be open with your clients about how you’re gathering and sharing their information.

Mobile Payment Types

Fortunately, there is no shortage of m-commerce payment options from which to select.

One-click checkout has grown in popularity, but choosing which payment alternatives to provide on your eCommerce site is even more crucial for your mobile site because most customers want something that is quick and convenient.

You might be on your way to increased conversions, sales, and devoted clients if you can spare your consumers the tiresome task of putting in their credit card information and personal information each time they make a purchase.

Here, we’ll present a brief introduction of the most popular mobile payment options so you can choose the one that works best for your company.

1. Cellular wallets (aka digital wallets)

Customers can keep information about their debit or credit cards, mailing addresses, and other payment details in their mobile wallets. So, customers can check out quickly and easily with just a few clicks instead of having to re-enter their credit card and personal information every time they make a purchase.

For one-click checkout, US clothing company Natori, for instance, employs PayPal One-Touch.

Among the most widely used mobile wallets available are these:

  • iCloud Pay
  • Google Pay
  • Google Pay.
  • PayPal.
  • Android Pay.
2. Mobile payments that are contactless

To improve the omnichannel experience, contactless mobile payments allow in-store payments through mobile wallets.

Customers can use their mobile wallet to make purchases at physical stores if they have already entered their payment information into one, often Apply Pay, Google Pay, or Samsung Pay. To validate and send payment, all users have to do is put their phone next to a compatible terminal, rather than using a credit or debit card or cash.

3. Mobile closed-loop payments

Closed-loop mobile payments are like mobile wallets in that customers only have to give their payment information once instead of every time they make a purchase.

Closed-loop payments, however, are solely connected to one specific brand’s mobile app. Customers have the option of loading funds onto a spending account or gift card, which allows them to check their balance, add additional funds, and make payments online or in person.

Several well-known instances of closed-loop mobile payments include the following:

  • Starbucks a
  • Taco Bell 
  • Walmart

You can see in the example below how Atlanta Light Bulbs uses this payment option to streamline the purchasing process for clients and speed up the payment process.

4. Transfers of money

Instead of just using mobile banking apps, users can now choose from a number of ways to transfer money quickly and safely:

  • PayPal
  • App for Google
  • Venmo 
  • Cash app
  • Facebook pay
5. Mobile point-of-sale via Facebook (POS)

A smartphone, tablet, or another mobile card reader that can process transactions wirelessly and serves as a cash register is known as a mobile point-of-sale system.

Small businesses may want to use mobile card readers because they are easy to use and affordable, and all you need is a mobile phone. Some of these systems can even connect to different eCommerce platforms, so you can instantly sync your sales and inventory between your physical stores and your online stores.

Here are some well-known mobile POS solutions that you can test out:

  • Clover 
  • Lightspeed 
  • Square

Selecting a Mobile App vs. a Mobile Website

According to eMarketer, by 2020, US consumers will spend more than 4 hours per day on the mobile internet, with 88% of that time spent in apps rather than mobile browsers. not to mention that mobile-branded apps account for around 70% of sales.

Why is that so?

because mobile apps give businesses the ability to regulate the client experience.

The customer has downloaded and opened your app on purpose instead of searching the web and comparing prices and goods. Because of this, mobile apps tend to have a higher conversion rate than websites viewed on mobile browsers.

You can also improve your mobile app to reach out to loyal users again by running specials and discounts just for app users.

According to eMarketer, by 2020, US consumers will spend more than 4 hours per day on the mobile internet, with 88% of that time spent in apps rather than mobile browsers.

When Mobile Commerce Isn't Always the Best Choice

Even if mobile commerce is becoming more popular, you don’t have to jump on board right away. M-commerce might not be the best platform for all internet enterprises.

Here are a few warning signs to watch out for:

1. A lack of resources for development

We’ve already talked about how mobile commerce is very different from traditional e-commerce. Because of this, you can’t expect that all of your skills and resources will transfer easily when you create a mobile store.

You need the necessary skills to support this transformation if you want to go mobile. You should have an internal or external development team ready to go for mobile projects because m-commerce is an industry that is becoming more and more competitive. If you don’t have the right tools and people, it might be harder to reach your goals.

2. The target market does not use mobile devices

Make sure the audience you’re targeting actually uses their mobile devices before you start developing a mobile website or branded app. Otherwise, you risk squandering your time and money.

Persons 65 and older in the United States had the lowest rate of smartphone ownership (61% as of 2021). So, if your business is geared toward older people, you might not want to focus on mobile commerce.

Utilizing Mobile Commerce

Are you ready for your company to go mobile?

We’ve pointed out a few m-commerce trends and given you some tips to help you have a successful launch. Responsive design can make a mobile website look better, but it doesn’t always lead to more sales. Advice in this article:

1. Make a mobile commerce platform more important than fashion trends.

It’s simple to focus on the newest design fads rather than mobile site optimization. Responsive design can make a mobile website look better, but it doesn’t always lead to more sales. BigCommerce gives your customers a number of mobile integrations and features, such as SMS marketing and automation, one-click checkout, and a mobile shopping cart that is built in.

2. Rely on elements of social commerce.

Social commerce is on the rise, which shouldn’t be a surprise given that mobile platforms are used for 80% of all time spent on social media and 91% of all interactions between social media users and social channels. Mobile users may explore products and make purchases without ever leaving the app thanks to social commerce platforms like Facebook Shop, Instagram Shopping, and Pinterest Business. These platforms are paving the way for a seamless purchasing experience.

3. Physical stores may allow in-store pickup.

Don’t ignore brick and mortar, though. The best omnichannel strategies, which make the user experience the same both online and offline, are built into mobile commerce websites.

In 2019, Statista found that a large number of people use their phones to shop both in stores and online.

One way to connect mobile and in-store shopping is to offer click-to-mortar options, such as online ordering and in-store pick-up. Customers now have the convenience of shopping and making purchases from the comfort of their homes without having to wait a few days for delivery.

4. Use chatbots on mobile devices.

Insider Intelligence says that by 2024, people will use chatbots to buy $142 billion worth of goods and services. In 2019, consumers spent $2.8 billion on goods and services through chatbots.

Online stores are using chatbots and virtual assistants more and more to help answer questions and assist customers whenever they need it. This is because customers expect customer service 24/7.

Chatbots will not only help customers talk to you, but they will also give you as a retailer more time to focus on other parts of your business.

5. Create an in-app loyalty scheme.

A Statista survey found that rewards and loyalty programs were the second most common reason for people to download retail apps on their phones. Every time a customer makes a purchase, they can earn “points.” These “points” can be redeemed for things like discounts on products or early access to new collections. behind coupons and special deals.

Every time a customer makes a purchase, they can earn “points.” These “points” can be redeemed for things like discounts on products or early access to new collections.

Not only do these rewards programs encourage customers to download your app, but they also encourage them to return to your store and make additional purchases in the future.

6. Make use of augmented reality on mobile (AR).

After the COVID-19 pandemic, augmented reality became a powerful tool for businesses, especially in the fashion and beauty industries, to create online versions of in-person experiences.  In AR and VR fitting rooms, customers can clearly see how a product will fit them, how it will look, and what size it is.

M-commerce is progressing.

Mobile commerce isn’t just a trend, so it goes without saying that it will stay around. Mobile commerce will probably stop being an option for eCommerce merchants and start becoming more of a need as smartphones become more essential to how we connect, get information, and now shop online.

In fact, mobile commerce accounts for only a small portion of the market. Remember that a mobile website or app can’t exist in isolation if you want to have a successful omnichannel strategy. Instead, it needs to work well with other channels.

Mobile commerce is all about meeting your customers where they are and giving them a convenient and memorable experience.

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