M-commerce or Mobile commerce has been a growing phenomenon for some time now. Forecasts from various sources continue to show the potential growth if Mobile commerce were to continue its path forward (which is expected). Our previous article ‘The importance of M-commerce’ emphasized on the current state of the concept, as well as highlighting the main important aspects that explain the reasoning behind the popularity. This article will focus more on the upcoming/rising trends for M-commerce. Keep a look out for these trends as jumping on the wagon early might leverage your company significant growth increases and competitive advantage.
Let us briefly recap the concept of M-commerce. M-commerce entails all activity regarding the purchase of goods/services using a monetary transaction through a mobile device such as a smart phone or a tablet. The mobile commerce market has shown to develop at a rapid pace with contributions such as: mobile money transfers/mobile banking, electronic boarding passes and location-based services such as Uber (Mobile Commerce, 2022). These innovative implementations have completely changed the way we handle specific things. Going on a flight and not needing to keep your boarding pass close due to the mobile variant has destressed the process. Or take grocery shopping for example. Many people only take their mobile phone as the monetary transaction solely requires your phone. No bank passes or credit cards are needed anymore.
Your phone is becoming an increasingly important extension of yourself. Companies realize this and attempt to innovate continuously. This is the main contributing factor towards the increase in growth for M-commerce. Now, what is the growth forecast for M-commerce exactly?
According toWurmser (2021), retail M-commerce sales’ share in the US as a percentage of the total sales is continuing its growth expecting to reach 10.4% in 2025. This means that M-commerce in the US market will nearly double its share of total retail sales between 2020-2025.
Figure 1(M-commerce as a % of total sales – US market)
The growth of M-commerce, again, can be mainly contributed to the remarkable innovative concepts introduced. Many of these concepts, as discussed earlier, gained strong traction in the early stages. This is important to keep in mind as it shows that many companies understand the notion of following promising trends early to leverage their market position. As such, the trends below are upcoming and should be followed closely.
- Shopping Personalization
Adjusting the shopping experience based on the individual customer in question has not been anything new, However, the Mobile commerce market has shown to make great use of this concept as the methods that are being used to personalize the mobile shopping experience are innovative and strongly effective. Pixel tracking, following advertisements, mobile reminders after downloading applications, these are all methods that are highly effective aimed at increasing mobile commerce conversion rates. When conducting M-commerce, pay close attention to the ability and opportunities to personalize the shopping experience for your customer as new methods are introduced frequently. Companies now make use of ‘Predictive Analytics’. Predictive analytics are achieved through the use of Big Data. Data is being used to discover relationships and patterns between the historic data and outcomes to predict likely future behaviors.
- Cryptocurrency payments
Cryptocurrency has increased growth tremendously over the past years. It is no longer unusual for anyone to invest in cryptocurrency. The cryptocurrency market is expected to reach 1.40$ billion in 2024. The security and decentralization of cryptocurrency restrict government intervention, in turn stabilizing the security of the monetary value. The decrease of trust in Fiat further builds on this notion contributing to the expected increase in popularity of cryptocurrency. Many companies agree with the above and implement cryptocurrency as a possible method of payment for various purchases. Customers appreciate the introduction as large companies show that the method of payment is being used increasingly frequent. It is important for any m-commerce business to follow the crypto trends. It is recommended to introduce this payment method, when possible, through API’s or other integrations.
- AR (Augmented Reality)
Perhaps one of the newest concepts/trends is the concept of Augmented Reality. Companies such as IKEA have proven to gain leverage using this early concept by introducing innovative methods such as the famous ‘Try-On’ before you buy. This is essentially an integration within the IKEA mobile application that makes use of the mobile camera to visualize the object of purchase in your own living room. You are able to place and view the object in your own environment before purchasing. There are plenty of other companies seeing the value of AR and rightfully so. Keep an open mind and follow this trend accordingly.
M-commerce trends are important to follow, keeping in mind the growth of the concept. Would you like to know how more on how to implement M-commerce correctly within your business? Talk to a ModusLink Expert today by clicking here.
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O’Connor, F. (2022, 31 maart). 8 mobile commerce trends that will dominate through 2022 and beyond. eCommerce Customer Service Software | eDesk. Geraadpleegd op 18 april 2022, van https://www.edesk.com/blog/mobile-commerce-trends/
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Wurmser, Y. (2021, 4 augustus). Mcommerce Forecast 2021. Insider Intelligence. Geraadpleegd op 18 maart 2022, van https://www.emarketer.com/content/mcommerce-forecast-2021