Mobile commerce, commonly known as m-commerce is used to perform commercial transactions through internet by using handheld devices such as smartphones and laptops. It had a sudden growth in the year 2015, due to the increase in number of smartphone users and also the development of online banking services.
Electronic commerce was adopted by most of the people, which provided a strong base for the m-commerce. In U.S, m-commerce sales doubled due to the smoother purchase, improved search, context-driven and larger screens of the devices.
The outcome of this dramatic growth results in some benefits such as increase the demand for applications, fast acceptance of electronic transactions and technological development in the mobile devices. The sales through m-commerce expected to reach 121.13 billion dollars in U.S in 2016. It was more than the twice of e-commerce retail sales in 2014 and 39.1% higher than the 2015 sales.
Online shopping in the United States
In the present scenario, smartphones are considered as an important factor for in-store sales, which reports more than eighty percent of sales in the vacation days. People wanted to search store address, products, prices, online payments and more, through the retailer’s websites or apps by using a smartphone. In last year, the influence of smartphones in in-store purchases was worth about one trillion dollars in the U.S.
Smartphones have a greater effect on both online and in-store sales. The National Retail Federation expected 137.4 million Americans, or 59 percent of people would choose to shop during the Thanksgiving weekend, whereas in the last year, it was 58.7 percent.
Walmart will continue to exist as one of the most visited shops, in both online and physically by the shoppers. It has about 64 percent of consumers, but Amazon has 59 percent of customers.
For the first time, internet traffic on the shopping apps and websites was overtaken by the mobile phones than the desktop sites in the U.S. It was estimated that 53 percent of visits to those websites on the Black Friday. Customers and companies were not easily shifted to the mobiles because using phones can be infuriating while adding products to the cart and filling the forms. According to the reports of Adobe Digital Insights, the contribution of smartphones to the total sales was about thirty four percent in the last two months of this year.
The involvement of mobile sites will either improve or destroy the online revenue of the retailers for the holiday season and also measured eighty percent of all electronic transactions were made in the biggest hundred retailers in the United States. The apps and websites operated by larger retailers were gaining more, but the online-only, smaller retailers were faced problem to maintain their position in the competition.
The transition to mobile was unavoidable as many of their customers were spending more time with the smartphones. By the reports of the National Retail Federation, desktop has the mean transaction size far higher than the smartphones and tablets. The average transaction size of the desktop was 114 dollars, for smartphones, it was seventy dollars and eighty nine dollars for tablets.
Promotional discounts in the m-commerce platforms
When compared to the last two years, textile shops announced discounts for clothing at very high rates in this year. TJX companies offer discounts on the branded clothes has reached 39 percent in this September, which was higher than the last year’s promotions. In last year, the percentage of products reached during the promotion was about 33 percent and in 2014, it was 25 percent.
Growth of m-commerce in the U.S.A
Smartphones and phablets were becoming the widely used devices to search the shopping sites through internet. According to the recent reports, it was disclosed that the total estimation of e-commerce retail sales were expected to be above 121.13 billion dollars in the U.S.A. It was also observed that most of the e-commerce sales were made through mobiles and tablets. Around 39.1 percent of e-commerce has been made by smartphones in the year 2016.
Due to the advancement of smartphones with larger size and bigger screen increases the use of mobile phones in these days. Smartphones has a high resolution screen with LTE enabled system makes them so popular among the people.
In 2016, m-commerce was increasing its growth continuously with larger smartphones and tablets, which contributes about nearly forty percent of growth rate year over year. When compared to the last two years, it has almost doubled their revenue with 2.6 percent of the total retail turnover.
Still tablets retain its m-commerce sales with 50.6 percent in 2016 in the U.S.A. But, in future, it was predicted that its growth rate of 30.7 percent will be decreased by smartphones and in the end of 2017, half of the total m-commerce sales in the U.S.A would be contributed by the smartphones.
Progress of mobile phones usage
Smartphones were not only used for searching the product on internet, but it also used to purchase the items through online shopping. In the US, the value of m-commerce has been doubled in 2015 to 39.40 billion dollars and it will increase in a rate of 95.8 percent year over year. It also expected to reach hundred billion dollars in 2020.
Strategies to improve m-commerce
M-commerce is rapidly developing its growth in the US and there are some factors which must be employed by the e-commerce businesses.
Increasing the efficacy of the search results
The shopping apps must provide efficient results to the search made by the consumer, whereas irrelevant results to the searches will make the user frustrated. It will lead the user to leave the page without buying any product. One of the best initiators of this method was Amazon, which overcomes the Google’s effective search engine algorithm.
Easy payment modes
While shopping through the purchasing apps in smartphones, it will provide a better convenience to the customer. It was considered as a primary reason for purchasing on mobile phones. M-commerce players must provide a better experience to the shoppers.
Utilize E-commerce mobile applications
Most of the m-commerce sales were made through smartphones, it noticed that the e-commerce portals must optimize their user interface for their apps and make it more convenient for the smartphone users to buy a product in online.
Promoting the app through social media
The e-commerce sites must use the social media platforms like Facebook, Whatsapp and Twitter to promote their product. Since most of the smartphone users spend more time on these social media sites, it is easier for the business professionals to showcase their items to the public.
Conclusion
Mobile commerce offers the consumers to purchase the products through online, which gains momentum from the people. According to a statistics, it was recorded that almost one-third of U.S e-commerce sales were accounted by m-commerce.
Even though tablets have an effect on e-commerce sales, but in the future, smartphones will take over half of the m-commerce retails in the US. It happened because of lots of beneficiaries, provided by the purchasing cart apps and also due to the swell in smartphone users. In future, most of the sales would be contributed by these mobile commerce platforms.
Author Bio:
Anand Rajendran is CEO and Co-Founder of Dectar, best PHP scripts development company located in India. Dectar Apps is a part of Casperon Technologies a leading social and mobile development company which is Developing Uber for X apps for the past 3 years. I’m a Tech geek, Digital marketing expert, Entrepreneur, and Atheist who loves to write everything about PHP Scripts and mobile application development.
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