Why is Mcommerce the Future of Ecommerce?
Mobile commerce is one of the hottest topics in the retail world today. And for a good reason - mobile devices are becoming increasingly powerful, and customers are using them more often to conduct research, look for price comparisons, and make payments on the go.
Mobile commerce is one of the hottest topics in the retail world today. And for a good reason - mobile devices are becoming increasingly powerful, and customers are using them more often to conduct research, look for price comparisons, and make payments on the go.
It drives the market by making it easier for customers to purchase from any location. With mobile commerce, customers can conduct product research, compare prices, and make payments while on the go. Moreover, it is convenient and efficient and is expected to continue to grow in popularity.
Building on momentum from a significant pandemic bounce, mcommerce sales continue to grow, albeit at the lowest rate in years. Growth will speed up again in 2023 and stay above 13% through 2026, when US retail mcommerce sales will approach $700 billion, more than 41% of total retail ecommerce.
With the continued growth of mobile commerce, businesses must be prepared to meet the needs of their mobile customers. Mobile customers expect to be able to find the products they are looking for, to be able to compare prices, and to be able to make purchases quickly and easily.
Businesses that can provide a superior mobile shopping experience will be well-positioned to succeed in the future.
Mcommerce Trends and their Effect on Shoppers
According to Zebra’s 14th annual global shopper study, 90% of millennials, 84% of Gen Xers, and 53% of baby boomers use mobile ordering. And 92% of retail decision-makers agree that more shoppers are using mobile ordering, even as the pandemic has waned.
Mobile shopping has surged in recent years, mainly due to the pandemic. This amplified and accelerated the growth of mcommerce and customer expectations at an explosive rate. It puts a strain on supply chains, inventory and fulfillment processes, mobile apps, and back-end systems. And those challenges continue today.
Shoppers no longer distinguish between retail channels, and whether they’re shopping via mobile, in-store, or through another channel, they expect products to be available and want a seamless experience.
Retailers have to deliver a unified experience with little margin for out-of-stock, errors, delays, or poor customer service, and their mobile ordering fulfillment has to be as strong as any other channel of their business. Mobile shopping is here to stay, and retailers must be prepared to meet the demands of their customers.
Mcommerce sales continue to grow, albeit at the lowest rate in years. Growth will speed up again in 2023 and stay above 13% through 2026, when US retail mcommerce sales will approach $700 billion, more than 41% of total retail ecommerce.
Mobile Commerce is Expanding at an Unprecedented Rate
To underscore this new reality, Zebra’s study revealed some telling numbers.
69% of consumers say they prefer a blend of in-store and online shopping, and the proportion is even higher for Millennials (74%) and Gen Xers (73%).
Moreover, 67% of shoppers say they prefer to shop at online retailers that also have a physical location.
But 67% of consumers like having items delivered, and 60% prefer shopping with retailers that let them pick up orders in-store, curbside, or from another location.
Mobile commerce is one of the biggest trends in retail right now. By 2025, it's estimated that mobile commerce will make up 72% of all ecommerce. Mobile commerce is convenient for customers who want to shop on the go and makes it easy for retailers to reach a wider audience.
However, mobile commerce has its challenges. One of the biggest challenges is ensuring product availability and accuracy are maintained across all channels.
Another challenge is fulfilling orders through all channels with excellent speed and convenience. Hybrid commerce solutions can help retailers overcome these challenges by improving inventory management and providing customers with a more seamless shopping experience.
The Rising Wave of Mobile and Hybrid Commerce
With such a large percentage of shoppers using their mobile devices to research and purchase products, retailers need a robust mobile commerce presence.
Mobile commerce allows shoppers to browse and purchase products from their mobile devices, regardless of location. This is especially important for retailers who want to reach shoppers who are always on the go. In addition, retailers are also turning to hybrid commerce to provide a seamless shopping experience for their customers.
Hybrid commerce is a combination of mobile commerce and brick-and-mortar stores, providing shoppers with the best of both worlds. By offering mobile commerce and hybrid commerce solutions, retailers can stay ahead of the curve and meet the needs of today’s shoppers.
Shopping via Mobile Apps is Growing
More than 72% of ecommerce sales happen on a mobile device, with 85% of consumers favoring mobile apps over mobile websites.
Mobile apps have quickly become the preferred platform for shopping, with more than 72% of ecommerce sales happening on a mobile device. The main component driving the popularity of mobile apps is the speed at which they operate.
Mobile apps are six times faster than mobile websites and offer an immersive and frictionless experience that increases conversion rates, generates higher cart totals, and decreases abandoned carts.
Tapcart, a leading mobile commerce platform that enables Shopify-powered brands to launch no-code apps, notes that mobile apps are becoming increasingly popular due to their seamless user experience.
In a world where time is increasingly precious, shoppers gravitate towards platforms allowing them to make purchases quickly and easily. Mobile apps offer just that, and as a result, they are here to stay.
Social Commerce is Breaking the Mold of Traditional Ecommerce
In 2021, the number of buyers utilizing social commerce in the U.S. surpassed 90 million. Social commerce is giving a tough fight to traditional ecommerce by enabling users to shop directly from the platforms they are using, allowing retailers to bring the store directly to the customer.
With the average internet user spending nearly 2.5 hours on social media per day, retailers have an opportunity to catch the attention of consumers and capitalize on that attention with a one-click checkout process right in the app.
This social commerce trend is taking advantage of the outlets already sewn into the daily lives of internet users. Not only does this new way of shopping allow for more convenience, but it also eliminates the need for a separate website or app for online shopping.
Social commerce is changing the way we shop and making it easier than ever to get what we want, when we want it.
Instagram Shopping and Facebook Shops dominate the market when it comes to social commerce, with 70% of users looking to Instagram for product discovery. Brands on the platform have seen more than a 1000% increase in traffic and a 20% increase in revenue.
Facebook, TikTok, and Pinterest have also become top social commerce platforms for consumers and retailers alike. By implementing a social commerce strategy, retailers can easily reach more consumers, increase brand awareness and media presence, generate social proof, and reach target customers.
Social commerce is revolutionizing how we shop, so make sure you get on board!
Augmented Reality is a Growing Phenomenon
Roughly 40% of U.S. adults say they do not enjoy in-store shopping as much as they did before the pandemic. Augmented reality is staking its claim in the retail world as the new go-to solution for many shopping experiences.
Augmented reality has quickly become one of the most popular features in mobile commerce. By allowing users a whole sensory experience, augmented reality makes it possible for shoppers to try on products, personalize them, or visualize them in their homes before making a purchase.
This convenience and flexibility have made augmented reality a highly sought-after feature in mobile commerce.
A recent study shows that over 70% of consumers would be more likely to shop with a retailer that offers an AR experience. And with the metaverse on the horizon, retailers already using AR features will be well-positioned to provide highly customized and engaging shopping experiences that drive sales and return customers.
Metaverse shopping will provide a new level of convenience and safety that mobile commerce can't match. Augmented reality is the modern solution to the full shopping experience.
With Augmented Reality, shoppers can see how products look in their homes before they buy, eliminating the need for returns. They can also try on products virtually to see how they look and feel before making a purchase.
Augmented reality provides a level of customization that is unparalleled in the retail world. Retailers who embrace augmented reality will be able to provide unique shopping experiences that engage shoppers and drive sales.
Many companies have capitalized on this trend by developing a virtual fitting solution that uses augmented reality to measure body dimensions in real-time. This app-based platform allows shoppers to try on anything from sunglasses to clothes without ever leaving their homes.
In addition, augmented reality also makes it more likely for consumers to pick the right product the first time, leading to more positive overall experiences and customer retention.
Visual Search is in High Demand
Consumers increasingly rely on visual search when browsing for products on their mobile devices. According to a recent study, image-based searches now account for 25% of all mobile searches, and this number is only expected to grow in the coming years.
By enabling visual search on your mobile commerce site, you can make it easier for customers to find the products they’re looking for and drive more sales.
Visual search provides a more personalized shopping experience by showing custom results based on a shopper’s preferences and interests. With visual search, you can give customers the power to find the perfect product, no matter where they are or what they’re doing.
These trends are front and center for the ever-changing customer experience. As consumer behavior continues to evolve and the retail landscape changes, retailers that embrace and implement these changes early on will be better positioned for success now and in the future.
The End Remark
Mobile commerce sales are on the rise. It is anticipated that by 2024, mobile shoppers will exceed 187 million U.S. customers – representing over half the population of the United States.
Brands and retailers that invest in AI-powered mobile shopping tools will now be well-positioned to take advantage of this growing trend.
With that data in mind, we expect mobile commerce to become one of the main channels for online shopping, primarily when customers can easily conduct research, look for price comparisons, and make payments on the go. This trend will only continue in the years ahead, which is why brands and retailers need to start preparing now.
Source: Minds Task Technology Center.