Ecommerce has been on the rise massively in recent years, but it may not be the next true frontier for shopping as mcommerce continues to become more popular.
Insider Intelligence
But just what is mcommerce, and how do we compare ecommerce vs. mcommerce?
Simply put, mcommerce involves shopping through a mobile device (typically a smartphone), while ecommerce involves shopping online through your computer.
And mcommerce is poised to burst into the mainstream thanks to a host of technological advances that are making it easier for users to shop on their phones. Below, we've outlined the road ahead for mcommerce growth and detailed some mobile shopping statistics.
Mcommerce has the potential to become a major channel for shopping and to change consumer shopping habits. Consumers are reliant on digital devices now more than ever, and Insider Intelligence predicts that mobile will inch closer to becoming consumers' preferred channel for online shopping within the next five years.
Social media sites such as Facebook, Twitter, and Pinterest have all introduced "buy buttons" that let shoppers make purchases without having to leave the platform. And many retailers have introduced one-click checkout to their sites. This method requires shoppers to enter their payment information once, and then they can use the one-click option to make purchases without having to re-enter it.
As app usage continues to grow, it will be a major contributor to sales growth, especially with Millennials and Gen Zers holding massive spending power. These tech-savvy users have the ability to boost volume, as they're more likely to do a wider share of shopping on their smartphones.
Retail mcommerce sales hit $359.32 billion in 2021, an increase of 15.2% over 2020. By 2025, retail mcommerce sales should more than double to reach $728.28 billion and account for 44.2% of retail ecommerce sales in the US.
Insider Intelligence predicts mcommerce volume to hit $620.97 billion, or 42.9% of ecommerce, in 2024. There are two key devices driving the mcommerce revolution: smartphones and tablets.
Despite historically suffering poor conversion rates because of customer frustration from having to checkout on a small screen, smartphones have become the driving force behind mcommerce growth. US volume is poised to increase from $128.4 billion in 2019 to $553.28 billion through 2024.
Tablets, though paling in comparison to smartphone mcommerce volume, are also massively contributing to the success of mcommerce. Insider Intelligence expects $64.06 billion to be spent on tablets in 2022.
As mobile wallets and contactless credit cards become increasingly popular, tech giants like Google and Apple are making their way to the forefront of the payments space.
Google recently revamped its Google Pay app for Android and iOS users, and includes checking and savings accounts in partnership with Citi and Stanford Federal Credit Union. The enhanced Google Pay app's emphasis on money management tools could be a major customer acquisition advantage.
Buy buttons like Amazon Pay have built up user bases over the years. And Amazon Pay could be a precursor to the tech giant's further moves in financial services, especially as it expands the wallet globally. As a mobile wallet and online buy button, Amazon Pay can be adapted to different markets and allow the firm to establish an audience around a payment tool.
Mobile shopping trends are pointing to mcommerce as the wave of the future for shoppers. But mobile shopping is just one aspect of the broader payments ecosystem.
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