Mobile commerce revenues will reach $459 billion by 2019
As smartphone adoption continues to increase, more consumers turn to mobile devices to purchase. While most shoppers still prefer a desktop or laptop computer, mobile devices have quickly become the primary means of purchasing. As a result, worldwide mobile commerce revenues are expected to reach $459 billion by 2019 – an increase of 59% from 2017. As a result, most merchants are investing more in mobile apps and website optimization. By 2020, the number of people buying products and services through their mobile devices is expected to grow to 69%, and more consumers will likely be making purchases on mobile devices than ever.
The growth of m-commerce has been driven by several technological factors, including lowered mobile device costs and increased internet connection speeds. In addition, consumers want to be in control of their lives. If you don’t have a mobile app or a website that is easy to navigate, your customers will quickly turn to your competitors. As a result, a mobile interface is imperative for retaining your current customers.
With the growth of smartphones, users have increasingly turned to their smartphones for shopping and banking. As a result, many brands have made their presence felt by introducing shopping applications that made browsing catalogs easy and the checkout process simple. Additionally, banks have added mobile banking apps for consumers to make transactions faster and easier.
The growth of mobile commerce is expected to continue to accelerate, with the development of contactless payment methods helping to eliminate the need for card swiping and manual entry. These advances are making mobile payments more secure and convenient, and governments are taking steps to promote these technologies. Moreover, increased broadband connectivity is another factor stimulating the industry’s growth. And in addition to the technology, mobile commerce is rapidly transforming the brick-and-mortar industry.
In addition to mobile apps, voice commerce will reach $40 billion in the U.S. by 2020, fueled by the growing use of intelligent A.I. assistants. These products can be smart speakers or software applications on smartphones and P.C.s. Currently, almost half of all U.S. residents have brilliant speakers.
Voice commerce will become more prevalent in customers’ paths of purchase.
The use of voice commerce is becoming increasingly common in the consumer environment. The convenience of voice commands and the speed of online shopping make it an excellent tool for customers. The benefits of voice commerce include increased ROI, happier customers, and the ability to personalize the shopping experience.
Its early adoption stage means businesses can benefit from an early advantage over competitors. With technology that improves customer experience, voice commerce provides a personalized, seamless and secure shopping experience. Early adopters can begin using the technology well before consumers. Businesses can enhance customer experience by incorporating voice commerce into their digital marketing strategies.
While voice commerce is not as convenient as a screen, its use is becoming more widespread. According to Comscore, voice commerce will account for 50 percent of all searches by 2020. With the help of intelligent speakers, consumers can access information about the weather, listen to music, and search for products.
In addition to being more convenient, voice commerce will also reduce the cost of shipping. According to the Elasticpath study, more than 40% of consumers regularly use voice assistants to make purchases. Voice shopping is a natural extension of this trend. As more consumers adopt voice commerce, sales will increase by 30%.
Despite the benefits of voice commerce, privacy and trust concerns remain vital barriers. While privacy concerns may be the primary deterrents, it is clear that customers are increasingly turning to it as a means of payment. While some consumers may feel comfortable using voice-enabled payment methods, 33% fear their privacy will be compromised by smart devices listening to conversations.
Multichannel retailing will continue to grow.
Multichannel retailing is a strategy that includes both offline and online stores. In 2018, multichannel retailers saw a record increase in online sales. They outperformed their online-only competitors for the first time since 2017. Multichannel retailers increased sales in various categories, including home and garden, electrical, and clothing. However, some types struggled compared to others. While clothing sales were up just 1.3% year-on-year, mobile commerce sales were up 73%.
For a brand, multichannel retailing gives consumers more options and choices when they are shopping for products. This increases brand awareness and expands the customer base. Moreover, multichannel retailing allows retailers to increase their margins and sales by providing consumers with various options and convenience.
Adding additional payment options is a vital part of multichannel retailing. According to a recent study by Juniper Research, ‘Subscription service sellers should consider supporting multiple payment methods and focus on those that are most popular with consumers. Moreover, according to Adobe Analytics, the number of out-of-stock products will increase by 172% in the U.S. between January 2020 and August 2021.
While eCommerce companies are implementing new technologies to support customers, brick-and-mortar stores will remain an essential part of the eCommerce industry. For instance, Amazon is experimenting with drones to deliver its products to customers in the United Kingdom. The company is also launching new ways to improve its delivery services, including subscription-based delivery, in-day delivery, and cross-channel purchases.
Multichannel retailing will continue to grow in 2019 as consumers demand convenience. Multichannel retailing is one of the fastest-growing segments of the eCommerce industry, and it is a trend set to continue for the next five years. Juniper Research predicts that retailers will continue to offer compelling omnichannel experiences and increase user e-commerce spending.
While eCommerce only accounts for a small portion of overall retail sales, it provides a significant opportunity for future growth. Physical stores must develop infrastructures to extend their business into the digital world, and online companies must develop new strategies to elevate their brands. As consumers shift towards a multichannel lifestyle, the distinction between online and offline environments will become increasingly blurred. 73% of customers now use more than one channel in their buying process.
Amazon will continue to grow its share of the eCommerce pie.
Amazon is a significant player in the world of eCommerce. The company has a dominant market share in multiple categories, including Food & Beverage, Sporting Goods, Music & Books, Furniture & Home Furnishings, and others. Amazon has an eight-point lead over Walmart in the clothing and apparel category. According to PYMNTS, Amazon will end 2021 with a share of 14.6%, and Walmart will hold a 6.5% share.
Amazon is the world’s biggest e-commerce company by revenue, and it is challenging Walmart for the title of the largest retailer in the world. Last year, Amazon generated $470 billion in revenue, only falling behind Walmart’s $573 billion. While Walmart is still the top player in the eCommerce market, Amazon has grown faster in recent years. It also boasts a higher gross merchandise volume than Walmart. Amazon is still trailing e-commerce giant Alibaba, based in China, despite its size.
The company’s second-quarter revenues were $89 billion, a 47% year-over-year increase. Food/beverage is also Amazon’s fastest-growing category, contributing 3.7% of Amazon’s U.S. eCommerce sales in 2021. Apparel/accessories are the second-fastest-growing categories, with sales up 29% year-over-year.
Another critical aspect of Amazon’s success is its ability to attract more shoppers. The site has a higher desktop conversion rate, which is higher than the average of the top 30 online retailers. Even though Amazon saw a drop in March, year-over-year conversion rates have increased to 8.6%, a higher number than its 7.8% year-to-date average.
Online retail culture is evolving quickly as more consumers become active users of Amazon’s services. Sellers are eager to expand their options on the internet, and buyers have been vocal about their preferences. With the availability of information on Amazon’s customers, businesses can better understand what online buyers want and their habits. As a result, they can create products that meet those needs.
Amazon’s Prime membership program has attracted many new members. These members typically spend more than the average Amazon customer. This gives the retail giant an extra boost heading into the holiday season. It is estimated that the number of Prime members will reach as many as ten million in 2020.
