Are you looking to enter E-commerce? You may be already running your online shop. If you’re in the right direction you’d like to take; it’s essential to be aware of the e-commerce industry’s growing trends.
This is the case with the emergence known as mobile-based commerce. With the potential to create revenue for online businesses, this is not something you’d want to overlook.
If you need more solid facts, keep reading. In this article, we’ll look at the top ten mobile commerce facts you must know in 2021.
From the growth rate in m-commerce to the shopping behaviors of mobile customers, We’ll go over everything. Let’s go straight to the point.
Rise of M-Commerce
Let’s first establish how well-known mobile commerce has become and how it is expected to expand over the coming years.
Experts predict that in 2021 53.9 percent of all annual retail sales on e-commerce sites across the United States will come from mobile commerce (Statista 2019, 2019). Also, over half the amount US customers spend online will be made using mobile devices such as tablets and smartphones.
It’s a 9.6 percent increase over the 49.2 percent projected for the year ahead this year, the slowest increase over at most four years. The highest growth rate in recent years was from 2017 until 2018 when the percentage of mobile-based commerce transactions as a percentage of overall retail ecommerce sales increased by 14.8 percent.
Despite the slowdown but it’s still a remarkable growth from 2017. From 2017 through 2021, a mobile-based portion of online sales is predicted to increase by 56.2 percent.
Smartphone Usage While Shopping
To show the increasing popularity of mobile shopping, here’s a peek at consumers’ online buying behavior.
According to the most recent data on mobile commerce, more than half (53 percent) of those who claim they buy online regularly use their smartphones for this (Episerver 2020). In reality, they do more online shopping with their smartphones than other devices. These include laptops, desktops, tablets, smartwatches, and desktops.
The high reliance on m-commerce doesn’t just apply to everyday online shoppers. People who “rarely” shop online also prefer using smartphones instead of other gadgets. Even among those who claim they only shop once per year, most use their phones when they shop, compared to a slight decrease of 31 percent who use their laptops.
The more avid an online shopper is, the more likely they are to use their phones to buy online internet.
US Mobile Commerce Activities
Recent data on mobile shopping shows that almost fifty percent (46 percent) of US shoppers search for more information on the product or service they are interested in using apps for mobile shopping (Statista 2019, 2019). This is the most sought-after m-commerce option among mobile shoppers across the US.
The next step is buying the product 4 out of ten buyers making purchases through apps.
Utilizing apps to pay for items even if customers are at the physical store has gained much popularity. About a quarter of US consumers have used mobile wallets such as Apple Pay or Android Pay to pay for purchased products while in the shop.
Other popular mobile commerce options include shopping apps like Amazon Fresh, FreshDirect, and many more 20% of people use, as well as using shared economy services such as Uber or AirBnb.
Mobile Usage Accessing the Internet
Improved connectivity and improved access to smartphones are undoubtedly one of the primary reasons for mobile commerce.
M-commerce data from July 2020 reveal that, of 4.17 billion people who use the Internet, more than nine out of 10 (91 percent) use mobile devices to access the Internet (DataReportal 2020). This is roughly 3.8 billion people around the world.
Smartphones are the preferred device, with 90 percent of Internet users utilizing smartphones to access the Internet.
Although they’re considered outdated and old-fashioned phones with features (think your first-generation Nokia phones that have buttons, with a tiny screen with no touchscreen capabilities) remain in use by a small percentage of people who want to access the Internet. About 2.8 percent of all Internet users, or about 117,000, are still doing the same.
Internet users use around three-and-a-half hours connected to their mobile devices daily.
Use of Smartphones for M-Commerce
We’ve already seen an increasing percentage of mobile commerce within US online retail sales. What devices are consumers shopping on m-commerce? Let’s look at it further.
With over 250,000 smartphones in use across the US, the appeal of the smartphone can’t be denied. Therefore, it shouldn’t come as a surprise that experts predict the mobile commerce market from smartphones to hit $268.21 billion in 2020 and to increase even higher to $432.24 billion by 2022 (Emarketer 2019).
We need to look to the past to comprehend smartphones’ ever-important role in e-commerce.
In 2018, mobile commerce sales through smartphones reached $148.08 billion, about half of the anticipated sales for 2020. From 2018 until 2022, the amount of dollars spent on online shopping by consumers will be up almost three times over.
Number of Mobile Buyers in the US
The most recent data on m-commerce shows an estimated 167.8 million mobile shoppers in the US, making up 60.9 percent of the US population. It is a person who has made at minimum one purchase through the device they use on a mobile, whether it is through a website that they’re able to access via the web browser or through an application they’ve installed on their smartphone.
This figure is predicted to be 173.3 billion in 2020, a slight 0.6 percent increase annually in the next year, and then to 178.7 billion by 2021. By 2024, it’s predicted to be higher than 187 million (Statista 2020).
What is their paying? The data shows that the average US mobile customer spends around $100 for each purchase. This is different for each device. The average value of orders made using tablet devices is slightly more, at $101.96, compared to the figure of $94.85 on mobile phones.
Mobile Payments in the US
One of the ramifications of the increasing use of smartphones is the growth of mobile payment.
Mobile payments are financial transactions made digitally using small, portable electronic devices, such as tablets and smartphones, typically to exchange goods and services.
The most current statistics for mobile commerce indicate an increasing percentage of customers using mobile payments. For 2020, 69.4 million customers across the US will likely purchase with the method. This is about 30.6 percent of US smartphones (Emarketer 2019, 2019).
It’s the equivalent of an 8.4 percent increase from the 2019 figure of 64 million, and all indications indicate a rising use of mobile payment over the next few years. By 2023, the total number of people using mobile payments will likely increase by 80.1 million, which would be around 1/3 of the smartphones in use in the US.
