Mobile commerce or m-commerce is the hottest trend in the industry right now. To give you a clear idea, we have put together some mobile commerce statistics that cover a wide range of current trends and future estimates.
What is Mobile Commerce or M-Commerce?
Mobile commerce or m commerce is the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets.
As a form of mobile e-commerce app, m-commerce enables users to access online shopping platforms without a desktop computer.
M commerce examples including in-app purchasing, mobile banking, virtual marketplace apps like the Amazon mobile app or a digital wallet like Apple Pay, Android Pay and Samsung Pay.
M Commerce vs E Commerce
Though e-commerce and m-commerce have similar goals of buying and selling with the help of the internet, but there are some differences.
Let’s have a look.
E-commerce stands for electronic commerce, where shopping is done over the internet. Usually e-commerce is done with the help of desktop computers and laptops, so users have to look for a place to do their transactions.
On the other hand, m-commerce implies the use of mobile devices, so people can do their transactions anywhere with the help of internet on their smartphones and can perform transactions with just a few taps.
Because of mobile device portability, mobile commerce popularity will be far wider than e-commerce. Retailers can reach users almost everywhere, that allows for an opportunity to get more out of mobile commerce because of the huge audience.
With the ease of mobility, transaction on m-commerce becomes easier. You need just a few taps on mobile screen to complete the transaction.
In e-commerce, transactions take place on the computer. Users need a place to do their transactions.
Location tracking facilities of e-commerce are limited due to the non-portability of devices.
On the other hand, mobile commerce apps, can track and identify user locations with the help of GPS technology, Wi-Fi, and so on.
In e-commerce, credit cards are the most common form of payment. However, consumers are still afraid of sending their credit card information over the internet. The security capabilities of m commerce are a bit more extensive. In addition to regular security measures like two-factor authentication present in e-commerce, m-commerce can also offer bio-metric authentication.
The advantages of mobile commerce are as under:
Generally apps are 1.5 times faster when loading data and search results on mobile devices that traditional sites. There is no need to pull data from a server and that’s why customers can browse and purchase products faster. As mobile eCommerce apps offer same functionality as desktop apps, people may purchase products directly within an app.
Better Customer Experience
People are very familiar with smartphones and tablets, so they already know how to navigate to desired products in few clicks. Smooth customer experience equals better conversion rates, revenue and profit.
It is something different from a normal website. Now customer can get direct notification via mobile app. Push notifications are both instant and unobtrusive at the same time, that’s why it is a nice option for business.
Based on individual preferences and shopping patterns with a mobile app you can deliver personalized content to customers.
You can get customers demands data, at least very basic information like age, sex, location, shopping history. Within your mobile app you can set user analytics of various levels of sophistication.
Cost Reduction and Productivity
By reaching your target audience faster with a mobile app you obviously can cut down marketing campaign costs.
Mobile apps have a much better competitive in regard to marketing opportunities. Front and back camera, scanning codes, positioning system for location, compass, accelerometer, gyroscope and other build-in features can be used for commercial purposes.
Mobile Commerce Statistics for 2019
Let’s have a look some fascinating mobile commerce statistics for 2019.
Mobile Phones and Internet Usage Statistics
1. 67% of the Global Population Owns a Mobile Phone in 2019
The number of mobile phone users in the world is increasing day by day. These number is expected to pass the five billion mark in 2019. The mobile phone has become an indispensable part in the lives of people across the world.
The below graph from the Pew Research Center illustrates how much growth in smartphone ownership took place in just seven years.
2. 52% of Americans Owned a Tablet
In terms of tablets, over half of the US population owned one. Not only smartphones, tablets are still quite popular, and ownership could climb as high as 60 percent within the next five years.
3. US adults spend over 3.5 hours per day on their mobile phones
Not only the huge majority of Americans use mobile devices, they use them a lot.
EMarketer predicts that in 2019 mobile phones will surpass TV as the platform where Americans spend most of their time. The market research firm also predicted that US adults would spend 3 hours and 35 minutes on their mobile devices in 2018, which is an 11-minute increase from 2017. They expects this figure to go up by 8 minutes in 2019 amounting to 3 hours and 43 minutes.
4. Samsung has the largest market share among mobile device vendors
(Source: Stat Counter)
When it comes to smartphone vendors, Samsung has the largest market share at 31.49%. Apple is close behind with a market share of 22.35%. Huawei of 8.56% and Xiaomi of 7.49% rank third and fourth respectively. Let’s see how many mobile connections are there in the world.
5. 51% of website traffic comes from mobile devices
(Source: Stat Counter)
Mobile devices are leading website traffic source with a market share of 51% in 2019. Desktop traffic ranks second with 47% of website traffic, whereas the market share of tablets stands at 3.98%.
6. 56% of the world’s population has internet access
(Source: Internet World Stats)
In 2019, the number of internet users stands at 4,346,561,853, while the global world’s population is estimated at 7,753,483,209. Based on these figure, more than half of the world has access to the internet.
7. Internet users spend 6 hours and 42 minutes a day online
(Source: The Next Web)
According to Next Web reports, internet users spend 6 hours and 42 minutes a day online. If we scaled this number in wide range, the time we spend on the internet is about 100 days or a little over three months each year.
8. 79% of smartphone users have made a purchase online using their mobile device in the last 6 months
People are putting their move to smart phones to good use in terms of m-commerce. Around 4 out of 5 smartphone users have made at least one purchase in the last 6 months. This includes users who are experiencing mobile transactions for the first time and joining the large community.
9. By 2021, 53.9 percent of all retail e-commerce is expected to be generated via m-commerce
In 2017, the m-commerce growth was just 34.5%. This m-commerce sales forecast is based on the trends being seen in improvement in connectivity, device features, website responsiveness, and people’s comfort with shopping online. It is expected that by 2021, 53.9 percent of all retail e-commerce to be generated via m-commerce.
10. The share of m-commerce in all e-commerce is expected to rise to 72.9% by 2021
According to statista, the share of mobile retail commerce sales to 72.9% of total retail e-commerce sales worldwide from 2016 to 2021. Which is up from 58.9 percent in 2017.
11. 30% of Americans prefer mobile banking over other banking methods
American Bankers Association conducted a study in 2018 recording the answers of over 2,200 US adults. The results of the study is 42% use a PC or laptop to access their bank account.
However, mobile banking users aren’t far behind, with 30% of respondents using this banking method. Additionally, mobile banking is the top choice for young generations aged between 18 and 34 (51%).
12. 49% of consumers use mobile phones for shopping
BrizFeel published a study on consumers’ online shopping behavior and spending habits. In addition to closely observing the current state of the e-retail world, the source also provided insights about preferred platforms for shopping. According to that report, 49% of consumers use mobile phones for shopping online, while a lower percentage shop via PCs. Tablet users are not all that active when it comes to online shopping. Only 8% of consumers use tablets for online shopping.
13. Online shopping on mobile increased from 8% to 15%, while on desktop dropped from 78% to 63%
Over the 2016-2017 period, the share of shopping on smartphones in the overall online shopping numbers in the U.S. nearly doubled from 8% to 15%. The share of shopping on tablets also just doubled from 5% to 10%. This increase impact on the share of desktop shopping, which saw a decrease from 78% of the overall to 63%.
14. Conversion rates are lower with smartphone users than with tablet users
According to Adobe’s Retail Shopping Insights report, the highest conversion rates among desktop users are around 5.7%.
Tablet shoppers were responsible for 8% of the total traffic, and 9% of the total revenue, while the average conversion rate was 5.2%. Lastly, smartphone users generated 51% of the total traffic, and 31% of the total revenue.
15. 61% of U.S consumers use their mobile devices in stores to compare prices
According to m-commerce statistics by Statista, US consumers use their mobile devices while shopping in a traditional retail store.
61% of consumers conduct price comparisons while in store, and 63% of them use mobile app coupons and discounts to make in-store purchases. Apart from in-store price comparisons, another shopping activity mobile users like to engage in is comparing item reviews. Additionally, 56% of consumers use their mobile device to review.
16. The total sessions in shopping apps increased to 18 billion hours in 2018
(Source: App Annie)
While researching m-commerce trends and stats, we stumbled upon a fascinating statistics about mobile shopping. According to App Annie’s State of Mobile 2019 report, the total time mobile users spent in shopping apps was 18 billion hours in 2018. The report also stated that total sessions in shopping apps increased by 45% compared to 2016.
17. A higher screen resolution results in a $1.18 higher order
(Source: Adobe Mobile First World)
According to the data from Adobe’s Mobile First World report, there is a connection between a screen resolution and the average value of an order. As Adobe detailed, the order value will increase by $1.18 for every additional 10,000 pixels on smartphones.
Mobile Payments Statistics
18. One of the biggest mobile payments platforms in the world is WeChat Pay
(Source: Merchants Savvy)
We already discussed about the advantage of m-commerce. One of the main advantage was convenient of payment. WeChat Pay is a platform that helps mobile users do exactly what they want and it currently counts over 1 billion daily active users. However, this mobile payments platform is not the only platform of this kind with over 1 billion users. The users base of Samsung Pay and Alipay has also passed the 1-billion mark, while Apple Pay is trailing behind with 383 million users.
19. 39% of internet users worldwide prefer mobile payments
Statista published a report about the countries that prefer using mobile payments, as well as about the ones that prefer other payment methods. Based on the answers from internet users from all over the world, the global average of those who prefer mobile payments are 39%. Additionally, one of the countries where mobile payments have seen the highest acceptance rate is China where 64% of users are prefer mobile payments to other payment methods.
20. In 2019, over 61 million people in the US will use mobile payments
Just two years ago, the number of Americans who used mobile payments reached about 48.1 million. Last year, that number increased to 55 million mobile payment users. In 2019, according to the source, the number of people in the US that use mobile payments will reach 61.6 million.
According to numerous sources and m-commerce statistics, 2019 is the year of mobile commerce, that is why we’ll go through some predictions about the growth of the mobile commerce market. But before that, let’s compare the growth of e-commerce and mobile commerce markets.
21. Ecommerce will account for 17.5% of all retail sales by 2021
The percentage of e-commerce sales compared to total retail sales has been growing over the past few years. In 2015, global e-commerce sales accounted for 7.4% of all retail sales, while the following year, we’ve seen a 1.2 increase which is 8.6%. In 2017, e-commerce sales reached 10% of retail sales, only to further increase to 11.8% in 2018.
This year, e-commerce sales will account for 13.7% of retail sales, and 17.5% by 2021.
22. Smartphones will make up 34% of all U.S eCommerce sales in 2019
In April of 2019, eMarketer published a report on m-commerce retail sales in the US. The source forecasts that this year U.S smartphone m-commerce sales would climb to $203.94 billion, and account for more than one-third of all retail sales in the U.S which is 34%.
eMarketer also stated that desktop shoppers are still dominating the eCommerce market. According to mobile commerce sales forecast from this source, the m-commerce sales from smartphones will see a growth of 31.5% in 2020 and generate nearly $270 billion by 2022 and that figure should go up to $432.24 billion.
23. APAC countries, especially India and China show the highest consumer confidence in mobile payment adoption at 24%
In country-wise study of consumer confidence in mobile payment adoption, while 17% of worldwide shoppers are shown strongly disagreeing with using their mobile phones as the main tool for purchasing, 24% of shoppers in India and China strongly agree in response to the same query.
24. 51% of mobile shoppers in the US make their purchases via apps
Apps score marginally higher than mobile websites in the shopping criteria. However, trends on app commerce show their share compared to mobile websites will grow.
The statistic illustrates that the distribution of mobile purchases on smartphones in the United States in as of January 2017. During the survey period, it was found 51% of smartphone buyers in the United States had made the majority of their smartphone shopping purchases in 2016 via app.
25. 76% of consumers shop on mobile devices because it saves time
(Source: Dynamic Yield)
The primary reason for shopping on mobile devices is that it allows them to do it on the go, saving them time compared to desktop or laptop shopping. It is important, for online business owners to design the shopping experience such that it actually saves time for their customers.
26. Mobile shopping carts have an abandonment rate of 85.65%
This is in comparison to the average abandonment rate of about 80.74% for tablets and about 73% for desktops. M-commerce statistics show that online stores are often not optimized for mobile, with issues like slow load times which is very common.
27. The average value of global smartphone shopping orders is about $79.33
Smartphones also lose out in terms of average order values. Traditional devices have an average shopping order of $179.88 which is more than twice that of smartphones. As per the stats of statista, this results in smartphones accounting for only about 42% of e-retail revenues, despite getting 62% of retail website visits.
28. Only 12% of consumers find shopping on the mobile web convenient
(Source: Dynamic Yield)
Smartphone shopping scores really low on convenience. The issues shoppers face include sites not designed with phone screens in mind, popups, other intrusive ads, and lack of adequate information, etc.
29. Worldwide, m-commerce sales will account for more than half of all e-commerce sales by 2021
According to CBRE predictions, global mobile commerce sales will increase to 53.9% of all eCommerce sales by 2021. The source also expects smartphones to be the main contributor to overall m-commerce growth. As CBRE explained, smartphone sales accounted for 66% of all m-commerce sales in 2017, and that number should climb to 82% by 2021.
30. Organizations are experiencing as high as 3x ROI for personalization efforts
Personalization is not just a good factor. M-commerce statistics show that such efforts have objective, measurable benefits and can earn you as much as three times what you invest in setting up your mobile marketing systems.
Mobile Commerce Statistics – Conclusion
There’s a mobile revolution happening where in just a few years mobile commerce will be the norm.
As an e-commerce store owner, it’s vital that you acknowledge this fact.
You also need to understand the mindset of mobile users, their choices and what compels them to buy.
The 30 mobile commerce statistics mentioned here cover all of the bases and should provide you with the insight needed to deliver an amazing mobile experience.