Mobile phones are everywhere these days, and with them, mobile commerce has become a booming business. Mobile eCommerce or 1mCommerce allows customers to buy products through their phones, making the shopping experience more convenient and giving companies a wider audience reach.
People love shopping on their phones because it's quick and easy. In addition, mobile eCommerce offers convenience since you access it through any portable device. It's also more private than going into a store or shopping online on your computer, where anyone could look over your large screen and see what you're buying.
mCommerce helps business owners reach customers who can't access their physical stores. They can send coupons via text message and target specific areas where they're having trouble with sales.
As a business owner, you need to understand the ins and outs of mobile eCommerce. These involve trends, statistics, and critical strategies that are relevant today. If you're interested in learning more, this article provides an infographic and discussion detailing everything you need to know.
What is mCommerce?
mCommerce is the buying and selling of goods using smartphones, tablets, and other wireless handheld devices. The main difference between eCommerce and mCommerce is that the latter focuses on the mobile experience, allowing users to shop online without planting themselves on a desktop computer.
One of the reasons for its popularity is that people already use their phones to research, browse, and compare products' prices while on the go. The eCommerce component promotes the easy shift from researching to buying.
Mobile eCommerce Statistics
Recent data on mCommerce emphasizes that it isn't going away soon, especially considering mobile usage in the country.
mCommerce in Asia
Statista predicts that there will be 90 million smartphone users in the Philippines by 2025. If the population reaches 116 million, it would mean that nearly 8 in 10 Filipinos will be smartphone users. It's no surprise that more people are getting more comfortable using mobile wallets than paying in cash—not only in the Philippines but in more Asian countries.
According to McKinsey, mobile wallets were the leading eCommerce payment method in the Philippines, Vietnam, and Indonesia. The study ascribes the popularity of mobile wallets to digital know-your-customer (KYC) processes, making it much simpler to onboard new users.
This statistic makes it easier to believe that most eCommerce sales in Asia Pacific countries in 2021 were from mobile, according to another study from Statista. Additionally, Insider Intelligence mentioned that smartphones now account for almost 9 in 10 (87.2%) mCommerce sales worldwide.
mCommerce Worldwide
The eCommerce and mCommerce landscape lend themselves well to serving a global audience. Datareportal found that roughly 4.70 billion people were active on social media in 2022, highlighting how important it is for modern businesses to develop a digital presence.
Moreover, Insider Intelligence expects mCommerce to reach $534.18 billion in sales by 2024, underscoring the need to be well-prepared for the impending influx of customers.
Additionally, companies need to be aware of emerging technologies that could disrupt the eCommerce landscape, such as cryptocurrency, whose market is expected to be worth $2.2 billion by 2026.
With all the trends, statistics, and possible technological shifts, developing new and modern mCommerce strategies is paramount to your eCommerce brand's success.
Mobile eCommerce Trends
You can't understate the impact of the pandemic on consumer behavior. Although most countries are past the peak of the health crisis, the mCommerce landscape continues to change.
Below are a few mobile eCommerce trends you need to keep your eye on in the coming years.
1. Mobile wallets
The pandemic encouraged many Filipinos to use cashless payment methods, primarily through mobile wallets such as GCash and Maya. More than 100 million Filipinos used mobile wallets in 2022, and it's expected to keep rising. This trend highlights how important mobile wallets are to modern Filipino life, post-pandemic.
While it may still be tricky to pinpoint an exact reason for the recent mobile wallet boom in the country, a study suggested four factors influencing its adoption: perceived risk, ease of use, rebates, and social influence. These factors encouraged not only younger customers to use mobile wallets but also the less-tech-savvy older ones.
2. One-click ordering
Almost all (97%) consumers back out of purchases because it's too inconvenient. Hence, the emergence of one-click ordering taps into the consumers' growing need for convenience.
With one-click ordering, shoppers won't have to fill out forms or enter their personal information repeatedly each time they purchase. They can fill out their details once, and the platform saves that data for future use.
Another example of one-click ordering is conversational commerce. It's a method where social sellers—those that sell through Facebook, Instagram, or messaging platforms—can provide customers with an easy checkout experience via checkout links on messaging apps.
3. Voice shopping
Voice shopping enables users to purchase online through voice assistants. The most popular voice assistants—Apple's Siri, Samsung's Bixby, and Google Assistant—are on mobile devices and smart speakers.
A survey found that roughly 3 in 5 (60%) shoppers use voice assistants to buy something online. With how convenient it is to tell your phone to buy a particular item, it's easy to see why voice shopping has great potential to become a staple of mCommerce.
4. VR and AR
Virtual reality (VR) is a way to immerse yourself in an entirely new environment, while augmented reality (AR) allows you to interact with your surroundings in a digitally enhanced way.
Although the VR and AR scene in the Philippines is still relatively nascent, some businesses are already testing its capabilities and finding ways to enhance the customer experience. For example, Wilcon Depot recently launched its VR Store Experience, allowing prospects to walk around their warehouse in virtual reality.
Howard Wang, the chief technology officer of the Lazada Group, emphasized how much potential VR and AR have to disrupt the eCommerce—and, by extension, the mCommerce—scene in the coming years.
Beauty brands Bobbi Brown, Estee Lauder, and MAC Cosmetics recently debuted their virtual try-on experience for customers to see how well certain makeup products will look on them before purchasing.
5. Mobile shopping optimization
Roughly 4 in 5 shoppers (83%) will browse through products on their phones before making a purchase, according to analyst Yory Wurmser. This statistic provides a compelling reason to create a mobile-optimized customer experience. If that isn't enough, consider that Google officially cited mobile-friendliness as a ranking factor in 2015.
With more modern consumers using their phones more often than previous generations, optimizing your site is a worthwhile investment.
6. Smart personalization
Smart personalization is a trend in mobile eCommerce that analyzes user data and behavior and leverages machine learning to make personalized recommendations based on what works best for each customer. It focuses on understanding your users' needs to provide them with a seamless experience.
This technology isn't just about putting together a user's shopping cart and letting them go. It's also about understanding what they want, when, and how they want it—and then providing that to them.
7. Crypto payments
With more people getting comfortable with cryptocurrency, businesses are slowly beginning to accept it as a valid form of payment. The Philippines ranked second in the 2022 Global Crypto Adoption Index. Dragonpay, a leader in alternative eCommerce payments in the Philippines, recently began offering crypto payments to thousands of merchants.
Moreover, mobile wallets GCash and Maya also added crypto features to their apps, making it easier for the average Filipino to buy their first bitcoin or ether and use it online.
8. Utilization of apps
Recent statistics show that consumers spent almost $133 billion on mobile apps in 2021, a 20% increase from 2020.
Apps enable businesses to provide features that further engage customers. An excellent example is the GLife Marketplace, which lets customers shop directly from the GCash app.
Some restaurants also have ordering apps, allowing customers to order their favorite meals with just a few taps and enjoy multiple app-exclusive perks.
For instance, The Bistro Group's Bistro Delivers app allows users to order from their restaurants, like Italliani's and TGI Friday's, at the same time within a specific area. It also gives users access to promos to help them save on their orders.
Frankie's New York Buffalo Wings also has an app offering customers a simple and sleek ordering experience. It makes it easier for the brand to send push notifications through the app than a mobile-friendly website, which is ideal if they want to inform customers about the status of their orders or alert them of promos.
Mobile eCommerce Strategies
Your business must cater to the changing consumer behavior and their growing preference towards mCommerce. Below are a few points to help you improve your mCommerce strategies.
1. Optimize for mobile
Mobile optimization is more than just making sure your site loads quickly. It's also about streamlining your eCommerce store design and functionalities so that users easily navigate your store without a problem.
RUSH-powered websites are mobile-optimized for a seamless and satisfying experience for your customers, regardless of the channel from which they view your store- via desktop or mobile.
2. Choose a user-friendly design
The user-friendly design ensures that users still understand the text and icons on the smaller screen and that the layout neatly fits the device's dimensions. Include a dedicated search bar to allow users to find what they're looking for in your store quickly.
Consider Fogg's Behavior Model for designing your user experience to coax people into buying from you. In essence, it's a model to help you understand three components of customer behavior:
- Motivation: Why a customer needs to buy something
- Ability: The tools you provide to help them, such as an easy-to-use website
- Trigger: The prompts on your site that encourages them to buy, such as a call-to-action button
Keeping these design components in mind helps increase mobile eCommerce sales.
3. Leverage SMS marketing
Contrary to what many think, SMS marketing isn't extinct. A 2021 study showed that almost every marketer (96%) who used SMS marketing said it helped them increase their revenue. It's an excellent way to cut through digital marketing noise while reaching your customers directly where they are most of the time: on their smartphones.
RUSH has a pre-built engagement tool that allows you to send SMS broadcasts to different customer segments, making it easier to personalize messages without sending it one-by-one. Another SMS marketing strategy is to send promotional messages creates a sense of urgency, which can motivate your customers to act faster.
4. Simplify your service
There's no question that users prefer simpler brands and experiences over complex ones.
Make your product descriptions clear and your site easily searchable to offer your customers a more seamless and hassle-free service. Highlight best-selling products and ongoing promos on your landing page to guide customers on what to buy and inform them of the benefits they could enjoy the second your site loads on their phones.
Another strategy is allowing users to check out without needing an account. According to a survey, roughly 2 in 5 (24%) customers abandoned their carts because the store asked them to create an account.
5. Implement search engine optimization (SEO)
Search engine optimization allows your eCommerce site to appear on search engine results pages (SERPs) based on keywords your customers will likely use. Optimizing your site for what your customers seek helps you get in front of them, generating more traffic and sales.
6. Utilize push notifications
Push notifications connect you with your customers when they're not actively using your app. This strategy benefits mCommerce because you can send them reminders about their purchase, the status of their orders, or new product listings in their favorite categories.
If you aren't sure how to implement this strategy, RUSH-powered apps have a pre-built engagement feature. This lets you jump right into sending push notifications to your customers without a tedious setup process.
7. Streamline your checkout process
If somebody is set on buying something but the checkout process is complicated, it deters them from finishing the transaction; they might even change their mind. So, it pays for it to be a seamless experience.
RUSH platforms include an easy checkout experience for your business. It equips your mobile eCommerce store with the fundamental tools for a seamless checkout process, including:
- Multiple payment options
- Delivery options
- Order tracking for customers
- Order management
- Payment acceptance
- Delivery booking for merchants via the RUSH Merchant app
A quick and simple checkout process, including one-click ordering features, will ensure that customers complete their purchases, ultimately generating sales.
8. Leverage social media
According to We Are Social's Digital 2022 Report, Filipinos are on social media for an average of four hours and six minutes daily, ranking second in worldwide social media usage. Hence, it's worthwhile to focus on your social media marketing efforts, whether on Facebook, Instagram, or whichever platform your customers engage with your brand.
Rush to Keep Up With the mCommerce Trends
Knowing the current trends, statistics, and strategies under eCommerce is an integral step to leading a successful business. A solid understanding of these trends will help you find ways to improve your business and remain competitive in the uncertain and ever-changing market.
Simply understanding what's going on and how things are going in the industry will let you see where your business stands and how to improve moving forward. If you're looking for an eCommerce platform in the Philippines to capture your mobile audience, RUSH is here to help. Get in touch with us at RUSH today!
