Mobile commerce: e-commerce on around 6 inches

In 2023, the number of mobile Internet users in this country was 85% and a full 97.6% of all households had a cell phone. And the trend is upward! We are therefore in a position to make use of the concentrated possibilities of the Internet anywhere and at any time. It therefore stands to reason that our shopping behavior is also strongly aligned with this. According to surveys (e.g. by eMarketer and CBRE), 50% of consumers worldwide now use mobile devices for shopping. And this is unlikely to change anytime soon. Store operators should therefore definitely optimize their stores for mobile users. In this article, we will tell you which options are open to you for mobile shopping for your own store and what you should pay attention to. You will also find out in which areas mobile commerce is particularly worthwhile. But let's start from the beginning: What is mobile shopping anyway?

Definition: What is mobile commerce?

Mobile commerce, or m-commerce, is a special form of e-commerce, as the focus here is on sales via mobile devices (e.g. smartphones or tablets).

As more and more people surf the Internet with smartphones, transactions made via mobile devices are also steadily increasing. A look at the U.S. shows that with $431 billion in sales in 2022, mobile commerce is on the rise. The industry is coming to terms: websites and online stores must now be built to work flawlessly across mobile devices and provide a good user experience. Access to a desktop computer is no longer necessary for mobile shopping. However, a constant Internet connection plays a role here.

Mobile commerce includes not only buying and selling products, but also bill payment and online banking.

What is mobile shopping?

The term mobile shopping describes the purchase and sale of goods and services exclusively via mobile devices such as smartphones or tablets. Mail-order companies or manufacturers offer their products on mobile-optimized websites or specially created shopping apps. Customers have the option of browsing the provider's product portfolio with their mobile device to purchase items via the mobile Internet. Common synonyms for the term mobile shopping are mobile commerce and m-commerce.

A distinction is currently made between three types of mobile shopping, namely via:

• App: Shopping apps are user programs for mobile devices dedicated to the sale and purchase of goods and services. These can usually be downloaded from both the Apple Store and the Google Play Store.

• Website: Mobile shopping can also be done via a website. However, it must be optimized for mobile devices to be accessible from a smartphone or tablet. Responsive websites, dynamic serving and custom mobile websites are available options.

• QR Code: In this type of mobile shopping, both barcodes and QR codes can be read by a mobile device. Customers receive product information or are redirected to an online offer. QR codes link stationary retail and e-commerce in a special way. If the customer is interested in an offer that he finds offline, he can call it up and order it online via his mobile device.

In addition, apps, mobile websites and QR codes can serve as inbound marketing strategies for mobile shopping. Useful information, tips or games can draw attention to offers, brands and companies. It is not about the sale of goods and services, but about the customer's need for information. The aim is to support potential buyers in their search for a specific product or service and to pick them up at this mobile touchpoint.

Mobile commerce: advantages and disadvantages

Mobile commerce brings with it some advantages, but also poses challenges. We have listed the advantages and disadvantages below:

Advantages of Mobile Commerce

• Convenient shopping experience: customers can shop anytime, anywhere from the comfort of their mobile devices, making it easier to access products and services.

• Increased reach: mobile commerce allows businesses to reach a larger audience as more people use their smartphones to make online purchases.

• Personalization: Mobile apps and websites can personalize the shopping experience by catering to customers' individual preferences and behaviors.

• Faster transactions: Mobile payment options and pre-populated payment information allow transactions to be completed faster, increasing the likelihood of purchase.

• Use of push notifications: Businesses can inform customers about special offers, discounts or new products through targeted push notifications, which can improve customer loyalty.

• Online marketing: As mobile commerce continues to grow, companies that adapt their online marketing strategies to the needs of mobile users stand a good chance of being successful.

Disadvantages of mobile commerce

• User interface limitations: The limited screen size of mobile devices can lead to limited usability, especially for complex purchasing processes.

• Technical challenges: Developing and maintaining mobile apps and websites requires technical resources and skills, which can add costs.

• Security concerns: processing sensitive customer data and payment information on mobile devices can raise security concerns and requires secure data encryption.

• Dependence on Internet connectivity: a reliable Internet connection is required to use mobile commerce, which can cause problems in remote areas or with poor network coverage.

• Compatibility: Mobile commerce needs to work well on different devices and operating systems, which requires continuous adaptation and testing to ensure that the user experience is consistent.

E-commerce vs m-commerce: these are the differences

Even though mobile commerce is a form of e-commerce and thus they have some similarities, they differ in a few ways:

Mobile Commerce: The technical requirements

In order to use mobile shopping, certain requirements must be met. On the one hand, these have to do with the infrastructure: There must be a permanent Internet connection. Ideally via WLAN, LTE, HSPA or UMTS. Online purchases can also be made from a smartphone if there is only an EDGE or GPRS connection, but websites then often take a long time to load and the risk of a disconnection is relatively high. Secondly - and this requirement is obvious - users must have a mobile device.

Components of M-Commerce

There are several types of mobile commerce that allow consumers to shop and complete transactions through their mobile devices. Here are some important types of mobile commerce:

Mobile apps

Companies develop dedicated mobile apps for their online stores that allow customers to browse products, make purchases, and complete transactions directly through the app. Mobile apps often offer a streamlined user interface and personalized features.

Mobile-optimized websites

Many online stores have optimized their websites for mobile devices so that they display seamlessly on smartphones and tablets. Mobile-optimized websites automatically adjust to the screen size and provide a user-friendly experience for mobile users.

Mobile Wallets

Mobile wallets are applications on mobile devices that allow consumers to securely store their payment information and make payments in stores or online stores quickly and easily. Examples of mobile wallets include Apple Pay, Google Pay and Samsung Pay.

Mobile payment systems

Mobile payment systems allow consumers to pay for goods and services through mobile apps or websites. These systems integrate various payment methods, such as credit cards, PayPal, or other mobile payment options.

QR code scanning

QR codes are used in mobile apps or on mobile websites to display information about products or offers. Customers can scan the QR code with their smartphones to get more details or be taken directly to the purchase.

In-app purchases

Many mobile apps, especially games and entertainment apps, offer in-app purchases where consumers can purchase digital goods or additional features directly in the app.

Mobile social commerce

Social media has taken on an important role in mobile commerce. Platforms such as Instagram and Facebook offer features such as Instagram Shopping and Facebook Marketplace that allow consumers to purchase products directly through social media.

Mobile ticketing

Mobile ticketing allows consumers to purchase and store tickets for events, flights, trains, or other activities through their mobile devices.

These different types of mobile commerce provide consumers with a convenient way to purchase products and services through their mobile devices, allowing businesses to expand their reach and provide a seamless customer experience.

The role of apps in m-commerce

Apps play a central role in mobile commerce and contribute significantly to the success of mobile shopping experiences. After all, more than half of all Germans now make purchases via mobile devices.

Improved user experience

Apps offer an optimised user experience compared to mobile websites. They are specifically designed for mobile devices and therefore offer smoother, faster and more user-friendly navigation. Features such as gesture control, faster page loading and seamless transitions between pages significantly improve the user experience.

Personalisation

Apps enable a high level of personalisation of the shopping experience. They can analyse user behaviour and preferences and display personalised recommendations, offers and content based on this. This increases the relevance of the content and can significantly improve the conversion rate.

Push notifications

Push notifications are an effective tool for reactivating and informing users. By sending targeted notifications about special offers, new products or reminders about abandoned shopping baskets, retailers can strengthen customer loyalty and increase sales.

Offline functionality

Apps can function offline to a certain extent by caching content and information. This enables users to access certain functions and information even without an internet connection, which further improves the user experience.

Simple payment processes

Mobile commerce apps often offer integrated payment solutions such as Apple Pay, Google Wallet or other mobile payment systems. These enable fast and secure transactions, which simplifies the checkout process and reduces the likelihood of purchase cancellations.

Loyalty programmes

Apps are ideal for the integration of loyalty programmes. Users can collect loyalty points, receive exclusive offers and take part in special promotions, which promotes customer loyalty and long-term customer retention.

Integration of augmented reality (AR)

Apps make it possible to integrate advanced technologies such as augmented reality (AR) to make the shopping experience more interactive and appealing. For example, users can try out products virtually before making a purchase.

Quick access

Another advantage of apps is faster and easier access compared to mobile websites. Once installed, users can open the app with just one click, which increases the likelihood that they will use the app regularly.

Branding and recognition

A well-designed app can strengthen brand identity and promote recognition. It provides a constant brand presence on the user's device and can positively influence the brand image.

For whom is mobile shopping worthwhile?

Before you invest time and money in the mobile optimization of your online store, we would like to point out that some industries benefit more from mobile shopping than others. For example, the following applies to successful sales via mobile:

• Items that people spontaneously feel like buying sell best via mobile devices. In the age of influencers, these include fashion, cosmetics and small electronics.

• In m-commerce, on the other hand, items that involve a larger investment quickly fall through the cracks. These include furniture or expensive electronic items, for example. In these cases, the customer's value lies in being able to test the product in advance before spending larger sums.

Implementing mobile commerce correctly

In addition to the technical requirements for shoppers, there are also a few points to consider for you as an online retailer in order to really take off when it comes to mobile shopping. The clear focus here is on the user experience and usability of your store. Best practices include:

1. Offer customized deals: Mobile devices bring with them numerous features that are not possible on PCs or when shopping in brick-and-mortar stores, for example. As a merchant, you should build on these points and display your offers where they are relevant to shoppers.

2. Put the search function in the center: By this we mean, on the one hand, that the search function should be easy to find on each of your subpages. On the other hand, however, you should also optimize the search function in your store so that the user is offered intelligent suggestions, for example.

3. Optimize the checkout process: A smooth shopping experience including checkout is extremely important for customer satisfaction. So it's best to keep these steps as straightforward and short as possible. At this point, a "save" function for the shopping cart should not be missing either. This way, your customers can easily return to the store after an interruption and continue shopping.

Tip: In the case of shopping cart abandonment, you can use innovative marketing measures such as dynamic retargeting to ensure that some of your visitors return to the online store and continue shopping.

Mobile Commerce: Trends and Growth

The future of mobile commerce promises continued evolution and innovation as consumer shopping behaviors evolve and technology becomes more powerful. Here are some trends and developments that are important to the future of mobile commerce:

• Mobile payment methods: mobile payments will continue to grow in importance as consumers increasingly use mobile wallets and payment apps. The adoption of contactless payments and other secure mobile transaction methods will continue to grow.

• Augmented Reality (AR) and Virtual Reality (VR): AR and VR will revolutionize the shopping experience on mobile devices by enabling virtual try-on, interactive product presentations, and an immersive shopping experience.

• Voice-activated shopping: the proliferation of voice-activated assistants such as Siri, Alexa and Google Assistant will lead to more consumers making purchases by voice command.

• Mobile social commerce: social media will play an even bigger role in mobile commerce by providing seamless shopping experiences across platforms such as Instagram Shopping and Facebook Marketplace.

• Personalization and AI: Artificial intelligence and machine learning will be used to deliver personalized product suggestions and tailored offers on mobile devices to increase customer satisfaction.

• Mobile commerce in the B2B industry: Mobile commerce will not be limited to the B2C sector, but will also gain importance in the B2B industry as more and more companies offer mobile shopping solutions for their customers.

The future of mobile commerce will be shaped by continuous technological development and the changing needs of consumers. Companies that adapt to these trends early on and develop innovative mobile solutions will be able to achieve a competitive advantage and take advantage of the opportunities that mobile commerce offers.

Mobile commerce examples: these Latori customers rely on mobile shopping

Asphaltgold

The sneaker and streetwear brand has long known the influence mobile commerce can have on business success. Around 80% of Asphaltgold customers access the online store via smartphones, so a mobile-first strategy was inevitable here. Users also have the option of using the brand's shopping app, where they can also win the right to buy limited edition sneakers. All in all, Asphaltgold has adapted its sales strategy entirely to the needs of its customers, paving the way for success.

GoTiger

GoTiger, a Berlin-based startup, is fully committed to mobile commerce with a shopping app. The provider of Asian food has focused entirely on the development of the appropriate mobile app and approached the Latori team with this request. The Shopify store serves here only as a backend and data source, so that the app is supplied with data. Customers can download the app from the Apple Store or Google Play Store.

Our conclusion on mobile commerce

In order to keep up in the flourishing world of e-commerce, there is virtually no way around mobile shopping for online retailers these days. Purchase decisions are being made more and more spontaneously and without contact. If web stores are not designed for this, people will quickly look for another provider.