Contrarily to what most people would expect, e-commerce is nothing new. In fact, e-commerce was first introduced more than 40 years ago, and to this day, continues to grow with new technologies, innovations, and thousands of businesses entering the online market each year. The establishment of e-commerce was a tremendous achievement and it removed the barriers of space and time. It offered convenience, safety and excellent user experience as technology kept improving.
The latest revolution in the world of e-commerce is mobile commerce, which facilitates transactions across mobile platforms. If you’re thinking of adopting m-commerce for your business, there are many reasons why it’s a good idea. For starters, m-commerce offers convenient shopping across all mobile devices, whether it’s a mobile phone, laptop or tablet and you can reach customers on the go.
The other reason is mobile retargeting, in which ads that people see on their desktops follow them to their mobile devices. Mobile payments have increased in recent years as people gain access to mobile devices. The retail shopping experience has also improved and m-commerce is expected to quadruple in the next five years.
Coupofy, who specializes in the distribution of online coupons and special offers, released an updated version of their infographic on the growth of mobile commerce that was originally released in September 2015. Here are some of the interesting facts from their study (you can view the full infographic here).
A case for m-commerce
One of the most staggering facts that transpired from their study is that global mobile commerce is now 34% of all e-commerce transactions globally and is predicted to grow 31% in 2017. That’s more than 200% faster than the entire e-commerce sector. This means that there’s a possibility of all commerce going mobile and if you don’t adopt it, you are likely to be left out of this burgeoning market.
In addition, m-commerce is expected to grow at 31% in 2017 while e-commerce is expected to grow at 15%. This means that you can expect slightly more than double the number of new customers if you choose to adopt m-commerce, which is quite something when you consider the fiercely competitive markets we now have.
The fastest growing m-commerce markets
Some of the fastest growing m-commerce markets include Japan, which grew by 50% in 2015. The UK was the second fastest growing m-commerce market with a 45% growth rate. South Korea grew by 44% while Australia and Netherlands grew by 35% and 34% respectively. Such statistics show that the growth of m-commerce is not confined to western markets only, but all across the globe.
Top 10 fastest growing m-commerce merchants
When it comes to m-commerce merchants, the fastest growing merchant in 2015 based on sales was GOME Electrical Appliances from China, which had a phenomenal growth rate of 634%. The US company Nebraska Furniture Mart was second with a growth rate of 500%. Yihaodian, a Chinese online grocery business, increased its sales by 456% while VIPShop holdings and HappiGo had growth rates of 451% and 389% respectively.
Number six on the list of the top ten fastest growing m-commerce merchants was Suning Appliance, a Chinese company that sells household appliances, which increased its sales by 363%. Vancl, an online apparel brand based in the US had a growth rate of 275%. Dangdag, another Chinese merchant had a growth rate of 274% while Jumei and Xiaomi had growth rates of 239% and 233% respectively.
Average order value by device
When you compare mobile devices, smartphone users order goods worth $85 on average while tablet users order for $100. Google Android users order goods worth $78 while Apple iOS users average $100. When it comes to gender, females order goods worth $96 on average while males typically order goods worth $120.
Top 5 retailers
When it comes to retailers, the ones with the highest share of US shoppers who visit them only on mobile devices are as follows:
In conclusion, the bottom line is that m-commerce is the future of e-commerce and the figures above suggest that businesses should be at the forefront of adopting the technology since most of their customers have already done so.
For the first time last year, mobile users accounted for the majority of e-commerce interactions, and this trend is expected to continue growing in the coming years. All retail traffic that was attributed to mobile users stood at 55% while for those people who used desktop computers or laptops, the figure was 45%. Customers have shifted their behavior and they are now increasingly using their mobile phones to transact online.
Businesses can also sync their physical stores with their mobile presence, allowing them to increase their sales revenue as well as customer loyalty. Lastly, m-commerce benefits both the buyer and seller and both parties can enjoy the convenience it affords. There is no way to know where m-commerce will go, but if the recent developments in mobile technology are any indication, then m-commerce is there and there to stay.