Probably everyone knows the word e-commerce and the possibilities that lie under it – shopping without leaving home. Recently, you can also come across another term, which is mobile commerce, or m-commerce. M-commerce means making purchases using mobile devices, such as a smartphone or tablet. Rapid growth of mobile technology and internet connectivity made the m-commerce an essential part of the digital economy. In this article we will focus on the evolution of electronic and mobile commerce, we will share key statistics and tell you more about the future of shopping through your mobile devices. Let’s dive in!
Important inventions for e-commerce industry
Human beings are definitely driven to simplify processes and look for convenient and innovative solutions. One significant example of such comfort is the possibility of shopping without leaving home. The beginnings of electronic shopping date back to the 1970s…
In the 1979 Michael Aldrich connected a television to a payment system, using a standard telephone line connected to several stores. He called his invention teleshopping. It enabled customers to make purchases remotely from different shops. This innovation had a huge impact on the next steps of online shopping.
First e-commerce company
A few years later, in 1982, at the market appear the world’s first e-commerce company – The Boston Computer Exchange (BCE). It was an online marketplace for buying and selling used computers. It was a public service, much like the eBay site today. Potential customers looked for the products they were interested in, and then they completed the transaction over the telephone with the seller. BCE could take a commission of the transactions.
World Wide Web
One of the biggest innovations which had a huge impact on online commerce is launching World Wide Web. In 1993 CERN released their WWW code for free, what allowed independent servers to start appearing, leading to the rapid growth of websites. It opened up the internet to a wider audience, beyond just researchers and experts. This release marked a turning point in the history of the internet. This step enabled creating countless websites and has a significant impact on e-commerce. In the 1990s there started appearing platforms like Amazon, Ebay or Paypal.
There are even more inventions that influence the e-commerce industry and have had a positive impact on its growth. These include the possibility of online money transfers, secure online payment systems, advanced security measures, and more. While e-commerce was traditionally associated with desktop shopping, let’s take a look at how mobile devices have influenced this industry.
Mobile technology – new way of shopping
The rise of mobile technology has revolutionized the e-commerce landscape. It has fundamentally changed the way people shop and interact with online businesses. With the general adoption of smartphones and tablets, consumers now have the power of an entire marketplace in the palm of their hands. Mobile devices have made it easier for people to browse products, compare prices, and make purchases anytime and anywhere, eliminating the limitations of time and location. This convenience has resulted in a significant boost to e-commerce sales. More and more consumers prefer mobile shopping over traditional brick-and-mortar stores.
Additionally, mobile apps and optimized websites have enhanced the overall user experience, providing intuitive interfaces, personalized recommendations, and seamless checkout processes. These advancements have not only made shopping more convenient, but have also increased customer engagement and loyalty.
Mobile technology has had a profound impact on e-commerce, empowering consumers and opening up new opportunities for businesses to connect with their target audience and drive sales.
It’s all about convenience…
Mobile shopping offers a lot of opportunities for a customer. It definitely has a lot of advantages. What are the main of them?
Pros of m-commerce:
- Convenience: shopping anytime and anywhere, eliminating the need to visit physical stores
- Accessibility: easy access to a wide range of products and services at your fingertips
- Time-saving: quick browsing, product comparison, and streamlined checkout processes
- Personalization: receiving tailored recommendations based on preferences and purchase history
- Notifications: staying updated on deals, discounts, and exclusive offers through push notifications.
- Social integration: sharing products, reviews, and recommendations with friends and followers
- Mobile payments: using mobile wallets or payment apps for seamless and secure transactions
Thanks to m-commerce, we can forget about standing in line or going from one corner to another in search of the product we need. Buying online is often faster, eliminating the need to spend the entire day walking in a shopping center. We can switch from one shop to another quickly, all from the comfort of our own home. What’s more, we can easily compare products, even if they are from different brands. It definitely saves us time! M-commerce allows us to stay in touch with the brand by receiving notifications and personalized offers. Additionally, paying online with advanced technology, as we have now, is extremely convenient!
Numbers and figures about m-commerce
Mobile commerce has changed how we shop by using smartphones and mobile devices. With more people using smartphones, shopping has become easier and more convenient. In this blog post, let’s explore some interesting statistics about smartphones and mobile commerce, and see how they have influenced the way we shop online.
As of 2023, there are a whopping 6.92 billion smartphone users worldwide, which means that 86.29% of the world’s population owns a smartphone. That’s a big jump from 2016 when there were 3.668 billion smartphone users, making up 49.40% of the global population back then. The increasing number of smartphone users has changed the way we shop online. It also gives businesses more chances to reach a wider audience. With so many people having smartphones, it’s no surprise that mobile commerce has become popular and is changing how people shop online.
The rise of mobile commerce is impressive! In 2023, a huge 79% of smartphone users made purchases using their mobile devices, showing how much impact mobile shopping has. And get this, m-commerce sales are projected to exceed $510 billion in 2023. They are estimated to reach $710 billion in 2025. That’s a lot of money being spent through mobile devices!
People prefer using dedicated m-commerce apps for mobile shopping, and these apps account for 54% of all mobile commerce payments. It’s not just the preference; people spend over 100 billion hours on shopping apps worldwide. That’s a lot of time spent shopping on smartphones and tablets! (BTW, If you are interested in the topic of mobile apps – go to one of our previous articles.)
The percentage of mobile purchases has been growing too. From 2016 to 2023, it increased by 18.6%! In 2016, mobile purchases had a market share of 31.2%, and by 2023, it reached an impressive 49.8% (46.5% from smartphones and 3.25% from tablets). These numbers show how mobile commerce has become a major player in the retail industry, transforming the way we shop.
How the e-commerce and m-commerce industry will change? Let’s take a look at…
E-commerce & m-commerce trends
The future of e-commerce is dynamic and shaped by various trends and advancements. Several key trends are expected to shape the landscape of online shopping in the coming years. We decided to focus on key trends and how they can change the industry.
The increasing use of smartphones and mobile devices will continue to drive the growth of m-commerce. Optimized websites, dedicated apps, and seamless mobile payment options will enhance convenience and accessibility.
Personalization and Customer Experience
E-commerce will move towards personalized experiences tailored to individual preferences. AI-driven recommendations, personalized product offerings, and targeted marketing campaigns will enhance customer engagement and satisfaction.
The blending of online and offline shopping experiences is becoming essential. Retailers will integrate physical stores, online platforms, social media, and mobile apps to create a unified and consistent shopping journey.
The rise of smart speakers and voice assistants will shape the future of e-commerce. Voice-enabled shopping experiences, voice search optimization, and virtual assistants will simplify the purchasing process and provide convenience for customers.
Social media platforms will serve as powerful e-commerce channels. Shopping features within social media, influencer marketing, and user-generated content will drive e-commerce sales.
Sustainability and Ethical Consumerism
Consumers are increasingly focused on sustainability and ethical practices. E-commerce businesses will need to adopt eco-friendly initiatives, offer eco-conscious products, and communicate their social responsibility efforts.
Augmented Reality (AR) and Virtual Reality (VR)
AR and VR technologies will transform the online shopping experience. Virtual try-on, 3D product visualization, and immersive shopping experiences will bridge the gap between online and in-store shopping.
Same-Day and Instant Delivery
Customers expect faster delivery options. E-commerce businesses are exploring same-day and instant delivery solutions to meet the rising demand for quick and convenient shipping.
Subscription-based e-commerce models are gaining popularity. Offering curated product subscriptions, personalized boxes, and recurring services provide convenience and exclusivity for customers.
Enhanced Payment Security
E-commerce platforms are prioritizing payment security measures such as tokenization, biometric authentication, and two-factor authentication to protect customer data and instill trust.
In summary, the future of e-commerce will be shaped by evolving technology and various trends. These changes will greatly impact the user experience and simplify the way we shop, making it more convenient and accessible than ever before.
E-commerce and m-commerce have revolutionized the way we shop. They involve buying and selling products or services online and through mobile devices. E-commerce has a rich history, starting with… teleshopping! It developed in the 1990s with the advent of the internet. Today, it has become a massive industry, with billions of users worldwide. M-commerce, specifically mobile shopping, has gained significant popularity due to the convenience of shopping on smartphones and tablets. Thanks to technology, shopping online will be definitely changing and will give even more possibilities than now.