Tablets and other smartphone devices are winning the eCommerce game. Consumer spending is increasingly dependent on mobile apps on Android and iOS devices. In 2014, spending via mobile apps was worth over $200 billion. By 2018, that is expected to exceed $600 billion according to research by Goldman Sachs. Millions of consumers are going to make purchases via such apps. Mobile commerce (mCommerce) is increasingly “swallowing” the market share that was typically held by traditional ecommerce based on robust websites, great product displays along with SEO and PPC. In the next few years, businesses will be thinking more about optimizing the mobile app experience rather than a website.
There are plenty of reasons why mobile commerce is increasingly taking a large share of the eCommerce market. Mobile users, for obvious reasons, are typically spending more time on their devices. This massive growth in mobile commerce is also assisted by the massive growth in the adoption of smartphones by users from across the globe.
Thanks to the overall positive outlook of mobile commerce, companies are increasingly under great pressure to expand their mobile strategy and keep it at par or better than their ecommerce strategy. There is a greater need for companies to build and grow their mCommerce channels in order to fully leverage the opportunities that are available, particularly with the mCommerce mobile apps. Consider this: an 87% of the global population already has smart phones and in some countries, the proportion that has smartphones, hence capable of fully exploiting apps for product purchases is as high as 75%. Here are some of the ways in which m-commerce is winning over the traditional eCommerce:
1. More Mobile Searches
One of the great mobile eCommerce trends is the large number of people carrying out their searches via cell. Many users are now carrying out the most basic searches on the internet via mobile either web or apps. More users are accessing social networking websites such as Facebook via cellular phone and this offers a great marketing opportunity which can be exploited in order to push sales in the marketplace. 81% of cell phone users use phones for general browsing while 77% of users use it to search for specific information on the web. Perhaps one of the most significant stat is that 90% of mobile searches will result in an action. Mobile traffic is, therefore, very high value, high prospect traffic that results in very good conversions for businesses. This high conversion rate is one of the main winning edges of m-commerce over the traditional ecommerce which typically has very low conversion rates unless the content is well-optimized.
2. Users Are Very Comfortable With Mobile
This is, perhaps, best illustrated by the fact that mobile commerce has seen a 99-fold increase in just 6 years. In 2009, it was worth only $1billion. Today mCommerce is worth a whopping $200 billion. Still, an estimated 79% of the large online retailers have not optimized their eCommerce strategy for mobile which creates a massive opportunity for growth and the leveraging of this great opportunity.
3. Mobile Surfing is Location Aware
This is one of the biggest advantages of mobile commerce over traditional eCommerce. Thanks to the GPRS technology used in smart phones, it is very easy for stores to geo-target their users with specific information, offers, or promotions which leads to higher conversions for these retailers. It also results in greater convenience for users who are able to easily walk into stores when prompted. This is one of the main advantages of m-commerce over traditional ecommerce.
4. Mobile Commerce is Revolutionizing Product Displays
With mCommerce, users are moving from the normal or traditional forms of displays into something that is more innovative. It is possible to integrate some interesting and clever functionality with a mobile store app builder. For example, users are able to get more realistic product displays on the app interface. Brands have new opportunities for showcasing their products and maximizing on their sales.
5. It is Good for Local SEO
With mCommerce, it is very easy to target your local niche market. Users can easily get locally-relevant results based on GPRS settings and they can also unlock the advantage of high conversion rates in the mobile searches.
6. Easy Mobile Payment Integration
It is very easy to make mobile purchases thanks to the simple and easy mobile payment interface. Users can browse and make payments in only a few minutes. Cell phone ordering also makes communications quite easy for many users as they can easily call and receive alerts on the go on the latest offers and promotions offered in-app.