M-commerce or mobile commerce is a term defining shopping via mobile devices (usually smartphones). It is one of form of e-commerce and includes online shopping without the need of a personal computer.
Despite historically low conversion rates and user experience issues with small screens, smartphones became the driving factor for the growth of m-commerce. US trade volume is projected to grow from $128.4 billion in 2019 to $553.28 billion by 2024.
Since consumers are becoming more dependent on their digital devices than ever before, now m-commerce has the potential to become a major shopping channel and change consumer shopping habits and many experts predict that.
How many online retailers are there?
Knowing the comprehensive number of global or US online retailers it is important to better understand the overall served market. So, there are currently 9.1 million online retailers in the world, of which 2.5 million are in the United States.
Usually retailers can be divided into three categories, commonly known as:
- The biggest category - branded retailers (Companies that sell their own branded products)
- Traditional retailers (Companies sell products that are made by other companies on their websites)
- Virtual goods retailers. (Companies that sell virtual goods such as software, music, movie subscription, etc.)
What percent of online retailers now have m-commerce websites?
As 79% of smartphone users have made a purchase online using their mobile devices we wondered how prepared are all online retailers for this upcoming future scenario?
According to latest statistics 75% percent of online retailers now have m-commerce websites which is a promising number. In simpler terms 7 out of 10 online retailers are prepared.
All main social media player have introduced online shopping mechanism and “buy buttons” that allow shoppers to make purchases without leaving the platform. Also, many retailers have implemented one-click checkout on their website. In this way, the shopper only needs to enter his payment information once and can purchase without re-entering using the one-click option.
Millennials and Gen Z in particular have tremendous purchasing power, and as their app usage continues to grow, they will contribute significantly to increased revenue. These tech-savvy users are likely to shop more on their smartphones and retailers have to prepare their stores with focus on their needs.
M-commerce Market Share and Size
M-commerce has experienced rapid growth over the past two years and all signs point to continued strong growth over the next four years. In fact, eMarketer expects m-commerce to account for more than 10.4% of total US retail sales by 2025. That's more than 2.5 times his pre-pandemic share.