In today’s piece, we bring you some truly fascinating m commerce statistics. The trend of shopping on-the-go is spreading like wildfire, mostly because this type of ecommerce is convenient for consumers and retailers alike.
On one end, we have consumers that can complete a purchase with just a few taps on their mobile device. Thanks to the digital revolution, the coverage gap is shrinking, and 90% of the world’s population can connect to the internet using a 3G network or higher. With the ever-increasing number of mobile users and services like Google Pay and Apple Pay, digital shoppers have widely embraced mobile commerce.
On the other end, mobile commerce has massive potential from retailers’ point of view, as it enables them to reach their audience anytime and anywhere.
The shortest definition of mobile commerce can fit into six words only: online transactions via wireless handheld devices. In layman’s terms, the main idea behind mcommerce is to enable buying or selling products and services online through mobile phones and tablets. This type of commerce is a subset of ecommerce, and it is often referred to as the next generation of ecommerce.
You’ll find different variations of the term mobile commerce including mcommerce, m-commerce, and mcommerce. These variants are somewhat confusing, which is the reason why one of the common questions is: What do you mean by M Commerce? Regardless of how you spell it, for years now, mobile commerce has been changing the way we shop by adding speed and simplicity to the entire buying cycle.
Furthermore, there are three different types of mobile commerce including mobile shopping, mobile banking, and mobile payments. Each of the three types of mobile commerce relies on mobile devices for conducting financial transactions and purchasing products and services online.
The use of mobile devices instead of desktop computers and laptops is one of the simplest answers to the question: what is the difference between ecommerce and mcommerce? Apart from the type of devices used, when compared to ecommerce, mobile commerce allows for greater levels of mobility, more payment gateways, and a wider reach.
Now, let’s jump to those mind-blowing statistics about mobile commerce. Since mcommerce requires two things - namely having internet access and a mobile device - let’s see what the numbers say about these two essential aspects of mcommerce.
In 2019, the number of internet users stands at 4,346,561,853, while the global world’s population is estimated at 7,753,483,209 people. Based on these numbers, more than half of the world has access to the internet. If we take into account that the number of internet users in 2010 stood at a little under 2 billion, we can see that the internet population more than doubled in the past decade.
Moreover, according to a report from We Are Social and Hootsuite, the number of internet users is increasing by 1 million every day, so we can expect a rapid growth of the internet population in the near future.
(Internet World Stats)
Increased internet usage accelerates mobile ecommerce growth. As The Next Web reports, internet users spend 6 hours and 42 minutes a day online. If we observe these numbers on a wider scale, the time we spend on the internet is about 100 days or a little over three months each year. Now, let’s see what percentage of our online time we spend on our mobile devices.
(The Next Web)
EMarketer predicts that this year mobile phones will surpass TV as the platform where Americans spend most of their time. In a 2016 report, the market research firm predicted that US adults would spend 3 hours and 35 minutes on their mobile devices in 2018, which is an 11-minute increase from 2017. Additionally, eMarketer expects this figure to go up by 8 minutes in 2019 amounting to 3 hours and 43 minutes.
The data from We Are Social 2019 Digital report reveals that two-thirds of the global population already use a mobile phone. Owing to the fact that the mobile market is close to saturation, the number of unique mobile users increased by 100 million from last year only to reach 5.1 billion in 2019.
(We Are Social)
In 2016, more than 28% of the world’s population owned a smartphone, and that number increased by four points the following year. The number of smartphone units sold in 2017 only exceeded 1.5 billion. According to mobile phone sales statistics, the percentage of the global population that will have a smartphone is predicted to reach 37% by 2020.
(Statista, Strategy Analytics)
When it comes to mobile phone vendors, Samsung has the largest market share at 31.49%. Apple is close behind with a market share of 22.35%. Huawei (8.56%) and Xiaomi (7.49%) rank third and fourth respectively. Now, that we went through some mobile phone vendors and smartphones statistics, let’s see how many mobile connections are there in the world.
One of the quite interesting statistics about mobile connections comes from GSMA Intelligence. According to the source, the number of mobile connections is close to reaching the nine-billion mark. Now, what’s so interesting about this stat is that the number of mobile connections is higher than the number of people in the world. So, on the one hand we have 7.71 billion people, and on the other, 8.98 billion mobile connections.
Mobile devices are leading the race when it comes to global website traffic with a market share of 49.07% in 2019. Desktop traffic ranks second, accounting for a little under 47% of website traffic, whereas the market share of tablets stands at 3.98%. Now, we put an emphasis on the website traffic coming from mobile devices, and the next few stats will explain why we did so.
Mobile device users are quick to react once they conduct a search. Based on the m commerce statistics from Mobile Marketer, their searches lead to an action within an hour. On the other hand, after doing the research part, 70% of desktop users usually take action after about a month.
A study from the Pew Research Center reveals that 79% of US adult have made an online purchase. What’s interesting though is that 51% of Americans have used a mobile device for online shopping. What’s even more interesting is that, according to Mobile Marketer, mcommerce sales are expected to surpass ecommerce sales this year. Now let’s see if the digital commerce forecast from this source could come true by the end of the year by taking a look at what percentage of ecommerce is mobile right now.
(Pew Research Center)
As eMarketer, the leading research firm forecasts, mobile commerce will account for 53.3% of all retail ecommerce sales in the US by 2021. In 2018, 39.6% of retail commerce was mobile, and that figure should jump to 44.7% in 2019. Next year, eMarketer predicts that mobile commerce will be just one percentage below half of US retail ecommerce sales only to surpass them the following year.
These are the number for the US mobile commerce only. However, if we take a look at global mobile ecommerce statistics, mcommerce has already surpassed ecommerce. Namely, according to eMarketer, in 2016, mobile ecommerce sales accounted for 52.4% of all ecommerce sales. This year, they should climb a new high at $2.32 billion, and account for 67.2% of total ecommerce sales.
Next on our agenda is one of the three types of mobile commerce – mobile banking. So, let’s see what the statistics say about banking transactions on mobile devices.
Mobile banking has a broad audience among US mobile users, and the latest mcommerce statistics from eMarketer go to prove that. As the market research company pointed out, we’ve seen a 6.6% year-over-year growth among US mobile phone banking users between 2017 and 2018. So, while the number of US mobile banking users stood at 108.5 million in 2017, last year it climbed to 115.6 million, which is 49.2% of mobile users in the US.
EMarketer also revealed that mobile banking is close to reaching saturation levels among younger consumers. If we add to this the fact that older consumers show very little interest in mobile banking, we can expect a lower YoY growth over the next few years. EMarketer expects this growth to decrease to 3% by 2022.
Last year, Citi released a Mobile Banking Study that gave us valuable insights into mobile app commerce statistics. Based on the answers of approximately 2,000 American adults, banking apps are the third most popular apps among consumers. Social media apps take first place, while weather apps rank second.
The same study also revealed that as much as 91% of study participants prefer using mobile banking and mobile banking apps over visiting a bank in person. Moreover, mobile banking usage increased from seven days a month in 2017 to nine days a month in 2018.
With the goal of discovering m commerce trends in the finance and banking sector, the American Bankers Association conducted a study in 2018 recording the answers of over 2,200 US adults. The results of the study showed that the greatest majority of respondents, i.e., 42% use a PC or laptop to access their bank account.
However, mobile banking users aren’t too far behind either; with 30% of respondents using this banking method. Additionally, mobile banking is the top choice for younger generations aged between 18 and 34 (51%). EMarketer estimates that the number of millennial mobile banking users in the US reached 50.3 million in 2018.
Last year, BrizFeel published a piece on consumers’ online shopping behavior and spending habits. In addition to closely observing the current state of the e-retail world, the source also provided us with insights about preferred platforms for shopping. According to BrizFeel, 49% of consumers use mobile phones for shopping online, while a somewhat lower percentage shop via PCs. Tablet users are not all that active when it comes to online shopping, as, according to the source, only 8% of consumers use tablets for online shopping.
Last year, the volume of payments coming from mobile devices set a new record at over $2 billion during the Cyber Monday shopping event. According to mobile shopping statistics from Adobe, visits from mobile devices during last year’s Cyber Monday accounted for more than half of all website traffic at 51.4%. This was the first time this had happened in all of Cyber Monday history.
Based on the results of the Scandit Retail Consumer survey from last year, the highest percentage of mobile shoppers, i.e., 83% use shopping apps on a smartphone. The shopping app usage is significantly lower among tablet users, with 14% of them using shopping apps on these devices. Lastly, the percentage of consumers who used a shopping app on wearable technologies stands at 3% only.
Further insight into types of devices mobile users rely on for online shopping confirmed that smartphone users are the most active shoppers. According to mobile phone statistics from Kaspersky Cybersecurity Index, 50% of mobile device owners use their devices for online shopping.
Additionally, for 43% of smartphone owners, online shopping is one of the top online activities. Online shopping is among the top online activities among tablet owners as well. However, they are less active in this regard, with 17% of tablet owners using these devices for online shopping.
(Scandit, Kaspersky Cybersecurity Index)
While smartphone users proved to be avid online shoppers, tablet users are bigger spenders. Based on the mobile ecommerce stats from Grow Code, the average order value of tablet users is $118.02, while the same value for smartphone shoppers is approximately ten points lower ($108.99). The source pointed out that the average order value for desktop devices is the highest at $153.31.
Apart from Grow Code, we also looked at other sources for determining the average order value across mobile devices. Statista gave us a bit different values of online orders, but it confirmed that the average order value (AOV) is higher with tablet users ($87.01) than with smartphone users ($79.33).
Now, before we take a look at shopping activities of mobile device users, let’s see what percentage of mobile visits results in a purchase.
(Grow Code, Statista)
We turned to Adobe’s Retail Shopping Insights report for the latest mobile commerce statistics. 2018 shopping events between 1st of November and 31st of December provided us with information about conversion rates on different devices. Last year’s holiday season recorded the highest conversion rates among desktop users at around 5.7%.
Tablet shoppers were responsible for 8% of the total traffic, and 9% of the total revenue, while the average conversion rate stood at 5.2%. Lastly, smartphone users generated 51% of the total traffic, and 31% of the total revenue, while conversion rates for smartphone shoppers were below 3%.
According to m commerce statistics from Statista, US consumers use their mobile devices while shopping in a traditional retail store, and for various reasons. Here, we’ll include shopping activities that ranked as the top answers among consumers.
61% of consumers perform price comparisons while in store, and 63% of them use mobile app coupons and discounts to make in-store purchases. Apart from in-store price comparisons, another shopping activity mobile users like to engage in is comparing item reviews while in-store (62%). Additionally, 56% of consumers use their mobile device to review stores’ inventories.
While researching mcommerce trends and stats, we stumbled upon a fascinating piece of information about mobile shopping. Namely, according to App Annie’s State of Mobile 2019 report, the total time mobile users spent in shopping apps was 18 billion hours in 2018. As the source noted, total sessions in shopping apps increased by 45% compared to 2016.
Based on the data from Adobe’s Mobile First World report, there is a connection between a screen resolution and the average value of an order. As Adobe explained, the order value will increase by $1.18 for every additional 10000 pixels on smartphones.
(Adobe Mobile First World)
If the answer to the question of what are the advantages of M Commerce had to highlight only one advantage, we’d have to choose one-click payments. WeChat Pay is a platform that helps mobile users do exactly that, and it currently counts over 1 billion daily active users. However, this mobile payments platform, according to the source, is not the only platform of this kind with over 1 billion users. The user base of Samsung Pay and Alipay has also passed the 1-billion mark, while Apple Pay is trailing behind with 383 million users.
Mobile payments, one of the three types of m commerce, have been widely adopted. Statista published a statistic about the countries that prefer using mobile payments, as well as about the ones that prefer other payment methods. Based on the answers from internet users from all over the world, the global average of those who prefer mobile payments stood at 39%. Additionally, one of the countries where mobile payments have seen the highest acceptance rate is China where 64% of users said they prefer mobile payments to other payment methods.
Just two years ago, the number of Americans who used mobile payments reached 48.1 million. Last year, that figure increased to 55 million mobile payment users, and in 2019, according to the source, the number of people in the US that use mobile payments should reach 61.6 million.
Now, according to numerous sources and m commerce statistics, 2019 is the year of mobile commerce, which is why we’ll go through some predictions about the growth of the mobile commerce market. But before that, let’s compare the growth of ecommerce and mobile commerce markets.
The percentage of ecommerce sales compared to total retail sales has been growing steadily over the past few years. In 2015, global ecommerce sales accounted for 7.4% of all retail sales, while the following year, we’ve seen a 1.2 increase (8.6%). In 2017, ecommerce sales reached 10% of retail sales, only to further increase to 11.8% in 2018.
This year, ecommerce sales should account for 13.7% of retail sales, and 17.5% by 2021. Now that we’ve seen how ecommerce developed during the years, we can focus on mcommerce vs ecommerce growth and size forecasts.
In April of 2019, eMarketer published a piece on mcommerce retail sales from smartphones in the US. The source forecasts that this year US smartphone mcommerce sales would climb to $203.94 billion, and account for more than one-third of all retail sales in the US (34%).
EMarketer also pointed out that desktop shoppers are still dominating the ecommerce market, but the growth of desktop sales in the US increases by five points only. According to mobile commerce sales forecast from this source, the mcommerce sales from smartphones will see a growth of 31.5% in 2020 and generate nearly $270 billion, while, by 2022, that figure should go up to $432.24 billion.
After taking a glance at US mcommerce share of ecommerce sales, let’s see what the future holds for m commerce in India. 2018 recorded a 3.5 point increase in mobile commerce sales of all ecommerce sales in India jumping from 71.8% to 75.3%. EMarketer predicts that next year mobile commerce sales will be behind 80% of ecommerce sales in India.
According to predictions from CBRE, global mobile commerce sales should make up for 53.9% of all ecommerce sales by 2021. The source also expects smartphones to be the main contributor to overall mcommerce growth. As CBRE explained, smartphone sales accounted for 66% of all mcommerce sales in 2017, and that figure should climb to 82% by 2021.
However, you should keep in mind that these figures vary from one source to another. We already covered the mcommerce forecast from eMarketer that should see mcommerce sales accounting for 72.9% of all ecommerce retail sales by 2021.
In our closing thoughts about m commerce statistics, we wanted to share with you a few tips for becoming and staying successful in the mobile commerce era. Make sure that mobile pages on your site load quickly, decrease the number of steps between the landing page and the checkout page, and if you haven’t already done so, add mobile-first payment gateways to your site.