Nov 18, 2024 5 min read

The Future of Shopping: How Mobile Commerce is Shaping the eCommerce Landscape

Part 2

What is Mobile Commerce (M-commerce)?

M-commerce refers to buying and selling goods or services through mobile devices like smartphones or tablets. With 6.84 billion smartphones in use globally, it’s revolutionising e-commerce with its convenience and reach.

1) Mobile Experience: Meeting Modern Expectations

With 80% of online shopping transactions now completed on mobile, brands must prioritise creating a seamless and engaging experience tailored specifically for mobile users. Mobile should not be viewed as a scaled-down version of a desktop site; it demands a unique approach.

Convenience is a top priority for mobile shoppers. For example, 59% of users will abandon their carts if frictionless payment options like PayPal, Apple Pay, or Google Pay (their preferred payment method) are unavailable. Mobile users also consume content differently, reading fewer product descriptions and favouring visual formats such as shoppable videos or interactive carousels. This shift requires brands to rethink not just design but also how they present information.

Popular banners and pop-ups that perform well on desktop can be intrusive and disruptive on mobile. Optimising for speed, removing intrusive elements, and enabling features like voice and text search can significantly enhance the overall experience. For stores with large catalogues, search and discovery features are vital to prevent losing customers, as smaller screens can make long scrolling sessions feel overwhelming. A recent demo from the tech platform Miros highlighted how search functionality based on user behaviour can simplify this process.

Mobile isn’t just a browsing tool; it’s a transactional channel. Success hinges on understanding user behaviour and creating an experience that eliminates friction, engages users visually, and makes checkout effortless. By fine-tuning these touch points, businesses can unlock substantial revenue growth.

2) Mobile Conversion: Turning Browsing into Buying

Mobile plays a pivotal role in the conversion process, but the journey varies depending on the product's average order value (AOV).

For lower average order value (AOV) products, mobile often represents the entire customer journey—from clicking on an ad to completing checkout. In these cases, optimising for speed and simplicity is essential. A direct path to purchase, minimal steps, and one-click payment options can make all the difference.

For higher AOV products, mobile typically serves as the research and discovery stage, while desktop is preferred for final purchases. At a recent event on mobile commerce, the brand Boudain & Lounge revealed that their customers, whose average order value is £470, often take up to 30 days to make a decision. For first-time buyers in particular, purchases are more likely to be completed on desktop, even though mobile accounts for the majority of their traffic. Retargeting is crucial in these scenarios to keep the brand top-of-mind throughout the decision-making process.

70% of mobile commerce-related searches lead to a purchase within just one hour. In contrast, desktop users take an entire month to finalise their purchase - Mobile Commerce Statistics: The State of mCommerce in 2024

Don’t overlook email marketing, as 63% of emails are opened on mobile devices. Emails should be optimised for mobile viewing, with features like shoppable links that lead directly to featured products or videos. These elements can boost engagement and drive conversions. By recognising these nuances, brands can tailor their mobile strategies to align with different customer journeys.

3) Mobile Websites vs. Mobile Apps

Both mobile websites and apps are crucial tools in the mobile commerce ecosystem, but they serve different purposes based on audience needs and business goals.

Mobile websites are more accessible and flexible, allowing customers to engage without needing to download anything.

Mobile apps, however, offer unique advantages. Features such as push notifications enable brands to engage directly with customers, driving re-engagement without relying on ads. Notifications can be highly targeted and personalised, but their effectiveness depends on relevance and timing—too many notifications can lead users to uninstall the app.

Striking the right balance between these channels can elevate a brand’s mobile strategy and cater to diverse customer preferences.

When considering whether to invest in a mobile app, businesses must weigh the initial development and ongoing maintenance costs, including updates and troubleshooting for platforms like Android and iOS. Managing multiple apps can also strain resources as businesses scale.

A progressive web app (PWA) offers an alternative, providing app-like experiences directly from the browser without platform-specific development or downloads. While PWAs are more cost-effective, they may lack certain features of native apps.

Evaluating the financial implications of each option is essential, from development costs to long-term expenses and ROI. CloudFO can assist businesses in assessing the financial impact, helping you make informed decisions with your AI Finance Colleague to choose the right solution for both short- and long-term goals.

4) Mobile and Omnichannel Shopping

Today’s consumers don’t distinguish between mobile, desktop, or in-store shopping. While each channel should be optimised individually, they must work together as part of a unified experience. This omnichannel approach requires brands to deliver consistent and seamless interactions, no matter how or where customers engage.

Mobile often serves as the starting point in this journey. Shoppers might research a product on their phone, add it to their cart, and complete the purchase on mobile, desktop, or even in-store. To support this behaviour, brands must unify their systems to ensure synced carts, personalised experiences, and consistent messaging and pricing across platforms.

Data analysis is critical, as platform preferences differ by industry. A luxury brand may see high mobile engagement but more desktop conversions, while a beauty brand with lower price points might see mobile driving 80% of transactions. A one-size-fits-all approach simply doesn’t work.

As discussed in our previous article, social commerce is transforming online shopping, with this trend particularly strong on mobile. Platforms like Instagram, Facebook, and TikTok have integrated shopping features, enabling users to discover and purchase products without leaving the app. This seamless fusion of content and commerce drives higher engagement and conversion rates.

On mobile, social shopping is even more powerful. Customers discover products, browse shoppable posts, and make impulse purchases directly within social media apps. Brands must optimise for these behaviours, ensuring a smooth, fast, and frictionless social commerce experience.

To succeed, brands should align their mobile strategy with social platforms, delivering consistent, personalised, and engaging interactions from discovery to checkout. Features like social proof, user-generated content, and influencer collaborations can boost brand visibility and encourage quicker purchasing decisions.

The rise of mobile-first social commerce underscores that consumers no longer separate social media from their shopping journey. Businesses must refine their strategies for mobile to capture this growing audience and meet the expectations of modern shoppers.

Summary

Mobile commerce has become a vital force in e-commerce, driven by the dominance of mobile-first shopping experiences. Success for brands depends on:

Crafting seamless, engaging experiences tailored to mobile users.
Optimising for conversions across mobile websites, apps, and omnichannel strategies.
Integrating social commerce strategies with mobile platforms.

The rise of mobile-first social commerce highlights the importance of capturing today’s mobile-savvy consumers. For eCommerce brands, data-driven insights are essential in navigating this space.

This is where CloudFO, the AI Finance Colleague, helps businesses optimise their mobile commerce strategies by providing valuable insights into key metrics such as revenue, AOV, cash runway, and expenses. By modelling the impact of decisions, CloudFO enables you to align your actions with both short-term goals and long-term profitability. Ready to elevate your mobile performance? Start using our data-driven tools today to maximise conversions, boost profitability, and grow your business.

Did you read Part 1 ? https://blog.cloudfo.co/the-future-of-shopping-how-social-commerce-is-shaping-the-e-commerce-landscape/