Dear e-commerce folks,
We keep on bringing you the freshest e-commerce tips and insights from the market through Prisync Blog’s Guest Post Series.
In today’s post, we welcome Zuzana Padychova from Coupofy to talk about the brief hindsight story of mobile commerce and its consistent growth in numbers all around the world. – alongside a nice infographic, we hope you’ll like.
The Internet as we know it started getting popular in the United States during the early 1980s. This popularity coincided with the popularity of America Online, popularly known as AOL.
Conducting business transactions online was looked up as a huge opportunity. The first form of business transactions online happened by way of online advertisements on the popular websites. A number of businesses advertised their products online and when a customer was interested in purchasing the product, she was shown a number to call. There were several limitations for actual e-commerce transactions in the 1990s:
- It was not yet possible to process credit card payments online.
- Web programming had not yet become so mainstream as to make full automation possible- Internet used by the mass was low-speed.
- It was impossible for the prospective customers to look at high-resolution images and videos of the products they were interested in.
This is when Amazon.com and ebay.com were started, taking care of most of the practical limitations in e-commerce transactions. Broadband internet started getting popular and so were companies like Paypal that made it possible to process credit card payments online. The late 1990s was when e-commerce grew by leaps and bounds because of these advancements in technology.
We have been seeing mobile commerce getting similar traction during the last few years and numbers are also showing that.
Below you can find some of the statistics uncovered about mobile commerce along with an infographic here.
More than a consistent growth
E-commerce has been growing consistently for the last twenty years. While the first ten years of growth came from widespread internet penetration, the next ten years of growth came from developing countries and their e-commerce companies. This trend is expected to continue in 2017 during which e-commerce is expected to grow by 15%.
What is interesting is that most of this growth is going to be fueled by mobile commerce which is expected to grow by 31% this year. You can notice that this growth rate is more than 200% of e-commerce’s growth rate. Since mobile commerce already comprises 34% of all e-commerce transactions, if the current trend continues, mobile commerce will comprise of more than two-thirds of all e-commerce transactions in the next five years.
Fastest growing mobile commerce industries
It is common knowledge that India and China are the fastest growing markets for smartphones in the world. It is no secret that these countries are considered the most important for the top smartphone makers such as Apple, Samsung, Xiaomi, etc. It is natural to expect that these countries would have the fastest growing mobile commerce industry in the world. However, the reality is far from this expectation. In spite of having thriving smartphones sales, these countries don’t even feature in the top five fastest growing mobile commerce markets. The fastest growing mobile commerce markets in the world are Japan, the United Kingdom, South Korea, Australia and Netherlands. In the above list, South Korea and Australia are known for their high smartphone penetration in their countries. It is estimated that almost every adult in these two countries has a smartphone.
Foreseeing the growth
There are many businesses that foresaw the growth in mobile commerce and capitalised on the same. Many companies made use of efficient mobile marketing strategies to grow their businesses via mobile commerce. Companies like GOME Electrical Appliances showed an impressive 634% growth in mobile commerce last year. As you might have expected, most of the top fastest growing mobile commerce companies are from China. There were, however, two merchants from the United States that made it to the list which are Nebraska Furniture Mart with 500% growth in mobile commerce last year and Vancl with 275% growth.
Android vs. iOS
It is common knowledge that people who use iOS devices are normally affluent and earn more than their Android counterparts. Therefore, it might not have come as a big surprise to see that the average order value of an Android user is 22% lower than that of an iOS user. However, if you’re a marketer, you still shouldn’t be disregarding Android users because there are far more Android users than iOS users around the world. Ignoring them would mean that you’re ignoring around 70% of the mobile commerce market. You can notice from the infographic that males order more in value compared to females and that shoppers from tablets order for more in value compared to those who shop from their smartphones.
The future ahead
This huge growth in mobile commerce has been triggered by the popularity of smartphones and the increasing affordability of smartphones, high-speed wireless connectivity and the convenience of shopping on mobile devices. The more aggressive efforts from global giants to promote their mobile services and recent advancements in web programming and mobile technology will also continue to boost the growth of the mobile commerce sector. The mobile commerce sector shows no signs of slowing down and any business owner involved in e-commerce should have a solid mobile commerce strategy in place if they don’t want to be left out.
Today’s e-commerce is not only about desktop, mobile, tablet or any particular device.
It’s about being anywhere the customer breathes and offering them a valuable product/service at the right price.
Prisync can help you with setting your prices profitably yet still competitively in the wildly price competitive e-commerce market, with its fully automated competitor price tracker.