In the last couple of years, we've seen the world's retail industry's most defining digital transformation. Seeing as the CoVid pandemic propelled more delivery and shopping online, a dramatic shift in consumer preferences and behavior.
As consumers’ dependence on the digital space keeps expanding, M-commerce (mobile commerce) seems ready to break out into the mainstream.
And a study from Insider Intelligence anticipates that the mobile space will worm closer to being consumers’ preferred means for online shopping over the next 5-6 years. So, it’s no surprise mobile consumer expenses are projected to hit the $728 billion mark globally by 2025.
In this article, we'll take a good look at what's in store for M-commerce growth, noting the trends to enable mobile retail apps to stay at the top of the commerce game. Let's get into it.
Trend #1:
Consumers are willing to spend more on mobile devices year after year
Even though smartphones are generally known in the marketing space for having low conversion rates because of bad UX, their small screens, and oftentimes, customer frustration, these seems to have now become the major propellants for M-commerce growth in this day and age.
The surge in spending power and app usage among the coming generations of mobile customers could be predictors of major growth and sales volumes contributions.
And the data certainly reflects this:
Here are the important points from this report:
M-commerce is currently expanding at a 25% average annual growth rate in the United States
From 2019 to 2021, Mobile retail sales spiked an amazing 61.4% increase in sales, garnering $359.32 billion just last year alone.
Sales are expected to hit the $436.75 billion mark this year, 2022. That is an expected 21.5% rise from the preceding year.
M-commerce sales are forecasted to attain an immense $728.28 billion by 2025.
Year after year, mobile records a greater chunk of all-around e-commerce sales. It was the driving force of about 36.9% of total e-commerce sales in 2019. This figure grew to 38.5% last year and is expected to reach 44.2% by 2025.
On a world scale, M-commerce is a leader, accounting for up to 72.9% of total e-commerce sales. That’s almost a 40% increase from just half a decade ago. This means that nearly three out of every four dollars expended on digital purchases today is done by means of a mobile device.
Another staggering statistic is that 79% of smartphone users have made purchases using their devices in the past six months and 3 out of 4 of them indicate purchasing from their phones because it cuts down on time spent.
Trend #2:
Shopping apps are growing among consumers
According to the last mobile report from App Annie, mobile purchasing patterns facilitated by the CoVid pandemic haven't just been cemented but thrived.
On a global scale, customers spent 18% extra time on shopping apps last year. This is in comparison to 2020, with social shopping, fast fashion, and large brands leading the procession.
The fastest-growing mobile application category, with a 54% year-on-year development is currently shopping. Based on a study by Adjust, the standard install-to-register ratio of mobile shopping apps improved from 29.8% in 2019 to 32.8% in 2020. Alternatively, the install-to-purchase ratio went up by 14.7%, from 10.5% in 2019.
The study also revealed that mobile apps accomplish more than mobile websites:
Mobile apps get three times as many conversions as mobile websites.
Mobile app users make double the purchases mobile website users make.
Trend #3:
Mobile communications are becoming more accessible
Almost three out of every four web users (72.6%) will make use of the internet exclusively with their smartphones in the next 3 years. This is equivalent to about 3.7 billion people.
Over 1.3 billion are predicted to get on the internet via PC and smartphone by 2025. This is according to a report published by the World Advertising Research Center (WARC). Of these, just 69 million people will gain access through PC only.
WARC calculates that approximately 2 billion people presently access the web via their smartphones alone. This equates to about 51% of the total world base of 3.9 billion mobile users.
A large chunk of the smartphone growth use is expected to come from India, Indonesia, China, Pakistan, and Nigeria. However, there would still be 2.4 billion people who do not own a mobile phone by 2025, according to the report.
Trend #4:
Mobile internet keeps getting faster
The data compiled from Ookla featured in a Digital 2022 Global Overview Report shows that internet speeds are continuing to shoot upwards.
On November 1, 2021, the data obtained suggest that the average mobile internet user had a median download speed of 29Mbps, which is fast enough to stream a movie in 4K without any hitches or buffering.
These latest speeds are almost one-third faster than the average speed as of November 2020. That in itself is an impressive leap considering how much more cellular data the average mobile user consumes each month.
The global median speed for fixed web connections is still greater than that of its mobile counterparts though, with the median established download speed in November 2021 (58Mbps) almost doubling the same figure from November 2020.
Consequently, this gives consumers even further reason to engage more in M-commerce from their mobile phones. After all, the faster one can make a purchase, the better.
Conclusion
Definitely, mobile trends will keep playing a crucial role in the M-commerce industry in the future. And if you're an e-commerce trader, regardless of your particular venture, be it an iPhone repair shop with an online presence or a shopping app, you should keep a close eye on M-commerce trends.
By the way, here’s a guide on how to create an e-commerce store from scratch if your business doesn’t have one yet.
In the m-commerce trends that we've given above, a common denominator in most is app integration. The fastest way to stay with the changing times and tech is by working on a mobile app for your website. This is how customers prefer to purchase in this day and age.
Every mobile commerce trend is heading in this direction. Follow the best practices we've given in this guide, and dominate M-commerce in 2022 and beyond.
Another path you might consider following this trend is being a mobile app developer. So here’s a quick checklist of things you want to check before pursuing this career.
Author’s Bio
Vitalii Nedzelenko is the marketing manager of Good Zone Service & Repairs.
He is passionate about technologies, gadgets and digital marketing.