Browsing all articles tagged with Mcommerce
Aug
8

Mobile Monday: Week 5 – Mcommerce

Welcome to Mobile Monday, our weekly blog posting dedicated to providing readers with useful mobile marketing tips from Bob Bentz’s newest book “Relevance Raises Response.” Every Monday ATSmobile continues to grant readers a brief passage from one of the most essential marketing books available for purchase today.shutterstock_283022702 (2)

For our fifth week, we’re focusing on “Mcommerce” where Bentz discusses responsive web design, online transactions and the smart phone becoming of greater use to people.

Mcommerce

Everybody has heard of ecommerce, but considerably less people identify with mcommerce. Mcommerce is the selling and purchasing of goods and services through mobile devices, as opposed to traditional ecommerce which occurs on desktop devices.

To be clear, mcommerce is not a separate entity from ecommerce. It is actually a subset of ecommerce sales and it is calculated as part of ecommerce sales. Historically, if businesses could make a little extra selling goods on the small screen of the smartphone, that was great. Today, however, entire businesses such as Uber are mcommerce only platforms.

While mcommerce sales have a few years to go to catch ecommerce sales which make up two-thirds of all online sales in North America, the gap is clearly narrowing each year. There are several reasons for this.

  • Responsive and adaptive web design is now the norm for most mcommerce sites and this evolution has helped eliminate sites not being optimized for mobile — previously the biggest factor in making it difficult to shop on a smartphone.
  • Larger mobile screen sizes are becoming more commonplace. This includes not only tablets, but also phablets–the half tablet, half phone hybrid.
  • There is simply the greater use of the smartphone for everyday use and increased use of making purchases via mobile is one such use.
  • Over time, the public has shown increased confidence in making online transactions on a mobile phone.

Despite the increase in mcommerce sales, however, shoppers are still considerably more likely to make a purchase from a desktop than a mobile phone. This is not only true in overall purchases, but also in the percent of conversions from desktop compared to mobile. While the gap narrows every year, consumers are still more likely to want to make the actual purchase from a desktop.

There remains several reasons for mcommerce’s inability to match ecommerce sales figures. Consider the following:

The smaller screen and lack of a keyboard makes it more difficult to fill out a form and make a purchase. Just entering a 16 digit credit card number correctly without fat fingering any of the numbers is difficult to do on the first try.
A mobile phone is often not near wifi as opposed to a desktop which always has internet access.
Many mobile phones do not accept cookies so it is difficult to pre-fill some of the forms. There is one promising exception, however, as Safari mobile now offers pre-fill forms on its browser–an enhancement that should improve this factor.
Ecommerce sales offer credit card and Paypal payments. Mcommerce payments rely on mobile wallets which are still emerging in the USA.
Consumers have not been purchasing on mobile devices for as long as they have on desktop so there is still some reluctance to do so, especially by older customers.

Not surprisingly, when it comes to making purchases on mobile, tablets act more like laptops and desktops given their larger size. iPads convert best of all followed by Android tablets. Of smartphones, Androids convert to sales better than iPhones. This is surprising given the higher income levels of iPhone users, but Android also skews younger so that does give an edge to it when it comes to mobile sales conversions. In general, desktops tend to convert more often during working hours, but mobile takes over during leisure time.

When it comes to mcommerce, North America trails other countries in the percentage of online purchases made via mobile. In Japan and South Korea, more than half of all online transactions are made by mobile. Percent of purchases made by mobile in the United Kingdom are not far behind those of the Far Eastern countries. According to Forrester, it will take the USA until 2018 until half of its online sales are made via mcommerce. Japanese mobile consumers are over three times more likely to convert to a sale than USA consumers. If USA mobile conversion rates rose to those of Japan, the USA would account for over half of all mcommerce sales worldwide.

Opposite to what is going on in retail stores, mobile users visit online retailers more often and they buy more often, yet the average ticket sale is decreasing slightly on mobile. That is because mobile users are in a hurry when it comes to mcommerce and they are snacking on it often, but in shorter segments.

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