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“Mobile Commerce is the next big thing.”
I know, many of you would have raised your eyebrows. You might have been thinking that mobile commerce is not a big thing. It’s just a fad that will soon be forgotten or replaced by another.
But believe me, it is NOT so.
The mobile commerce domain is growing by leaps and bounds. The segment is flourishing at such a level that it is nearly impossible for someone to outshine in the market without giving a thought to the future of mobile commerce.
Something we will talk about in this article.
While the infographic would have given you a hint about how the future of mobile commerce will look, let’s take a deeper dive into the segment and see what one needs to consider for improving their mCommerce strategies. Starting with a quick recap of the current m Commerce statistics and trends.
These mobile commerce statistics and trends throw light on the fact that this segment is getting a huge momentum in the current scenario. The outstanding features of m-commerce is attracting both commerce businesses and users to turn towards mobile domain.
Last year, the mobile commerce revenue generated was $1.8 trillion and this year, it has touched $2.32 trillion (A value that is nearly 2X the one recorded in 2016). And by the end of 2021, it will reach $3.56 trillion – with an average y-o-y rate of 33.8%.
This significant rise in the revenue value is a clear indication that mcommerce market size will continue to grow. It will flourish exponentially, making it imperative for retailers and brand merchandise to hire the right mCommerce app development company and plan their mobile journey.
As per a survey by Mordor Intelligence, the demographics will vary in terms of mobile commerce revenue and expansion rates.
While North American and European countries will add more profits to the segment, Asia-Pacific and Middle East nations will bring more users into the domain.
In 2017, the share of mobile commerce in e-commerce retail sales in the US region was 35.5%. But, with a steep rise in the usage of smartphones and the growing attraction of millennials towards shopping apps, mCommerce will surpass e-Commerce, with 53.9% of the total e-commerce market share.
Currently, the mobile commerce growth is dominated by global biggies like Google, Mastercard, PayPal, Amazon, Apple, Alibaba, and SAP. But, in the coming years, many new entrants will come into the limelight. They will unleash better opportunities for consumers, establish themselves, and dilute the market to some extent.
Mobile wallets offer the facility to store credit card details and shipping addresses securely and process the online purchase without re-entering the information. Because of this functionality, users are showing a great love towards these wallets. A proof of which is that the mobile wallet market size is projected to reach $7,580.1 billion by 2027, growing at a CAGR of 28.2% from 2021 to 2027.
What’s more interesting is that the mobile wallet usage graph will be influenced by the geographical location. A glimpse of which can be taken from the following data:-
This will further make it necessary for the e-tailers to focus on the targeted location and gain other insights while deciding the features of their mobile wallet app.
6. The global proximity mobile payment transaction market will rise from 721.2 million to 1.3 billion in 2017-2021.
Mobile proximity payment (MPP), also called NFC payments, will also see an unprecedented rise in the coming years. The number of transactions will grow from 721.1 million to 1.3 billion between 2017 and 2021, with Google Pay, Apple Pay, Samsung Pay, and other such apps being the driving factors.
Now, while these mobile commerce statistics proves that the future of mobile commerce is clear and even dazzling, the next set of questions that arise here are –
What m Commerce will change the landscape of the segment? What factors should one consider while planning their mobile E-commerce strategies for 2021-2025?
Let’s wrap up this article watching out the latest mCommerce trends for 2021-2025.
Nearly 61% of smartphone users favor brands that deliver personalized experience. Because of this, personalization has remained one of the mobile commerce trends in 2021 and beyond.
And in 2021, this mobile commerce strategy will get an upgrade. Smart personalization will become the new face of the domain, with businesses focusing more upon behavioral segmentation while app marketing.
This implies, e-tailers and marketers will study user demographics, previous searches, behavioral shift, device logged from, and other such factors to push the right message to them at the right time. And this way, enjoy higher customer satisfaction rate and more sale conversions.
These days, smartphone users have 2 or more shopping apps on their devices and abandon a page if it takes more than 3 seconds to load. Because of this, focusing on improving page speed will also be one of the main mobile commerce trends for 2021-2025.
It will be important for both startups and established brands in the commerce domain to ensure that their app pages are well-optimized and loaded at lightning speed, while delivering an impeccable experience.
By the end of 2021, about 85% of customer interactions will be handled without human intervention.
Businesses will invest heavily in Chatbot development and integrate these AI-powered tools into their customer support process to reap a myriad of benefits of mobile commerce, such as:-
With a rising competition in the market, nearly 50% of businesses are using about 8 different channels for interacting and delivering customer experience. While this has helped them with creating a greater visibility, it is making it difficult to meet users’ expectation of delivering a seamless experience while switching from one to another touch point. Because of this, the idea of creating Omnichannel retail experience will prevail in the year 2021-2025.
Retailers and business merchandise will bring together both online and offline retailing methods as a single entity, such that users could get a wholesome shopping experience even on changing the communication channel.
Social media is also powering up the future of m-commerce. It is enabling brands to reach masses, build higher engagement levels, promote their product/services, communicate with them, get more insights to upgrade their business strategies, enjoy higher ROI, and much more.
It has been found that 55% of users made a purchase after they discovered a product on social media. Likewise, stores with social media presence have gained 32% more sales than those still working with traditional methods.
Augmented Reality will also continue to change the way we shop online and in-store. The technology will enable e-tailers and brand merchandise to promote their services/products in a much more realistic way, direct users while shopping in-store, as well as enable consumers to try out any product before buying.
With such perks, the technology is predicted to surpass the $35 billion mark.
While autonomous vehicles are still a new thing in the market, they are proving to have a high potential in the future of m-commerce. These technological innovations are handling inventory efficiently as well as delivering products in the least time across the globe. This way, they are coming up as the solution for various challenges faced by e-tailers in the present scenario, including providing a better shopping experience.
Though many people have not yet understood the working of Cryptocurrencies, growth in crypto payments will continue to outpace other payment solutions.
Brands will show more interest in introducing Blockchain wallets into their traditional processes during the period of 2021-2025. And provide advantages like –
With the rise of use of digital assistants like Google Assistant, Amazon Alexa, and Siri, Voice search will also become one of the top mcommerce trends for 2021-2025.
Users will make nearly 50% of their searches and prefer hearing businesses prices via voice by the end of 2021. All the while, businesses will embed voice-activated commands into their mobile apps to target those voice searches and increase sales.
A result of which is that the voice-driven shopping market is expected to reach $40 billion by the year 2022.
[Also Read: How to Integrate Siri into Third Party iOS Apps?]
While many people are debating about the death of the brick-and-mortar store in the coming years, it will survive and grow with the help of Proximity marketing.
The concept of using WiFi and BLE-powered Beacons will enable Entrepreneurs to target people within a particular radius of their physical store, send them personalized discounts/notifications, and make profits effectively.
With the number of advantages of mobile commerce and current trends in m-commerce, we can say that it will continue to grow in 2021 and beyond, attracting more customers and generating more sales. A number of companies have already started investing in a dedicated mobile application or are planning to do it. And if you too are looking for mobile commerce app development, get in touch with us. We are a reputed mcommerce app development company, providing mobile e-commerce solutions across the globe.