Everything is going mobile, and shopping is not an exception. Statista’s data shows that the number of US-based customers who make mobile purchases will reach 168.7 mln in 2020, while total m-commerce spending already increased to an incredible figure of $41.2 billion last year. In the next year, the shift towards mobile will be more noticeable than ever. Statista predicts that in 2021, m-commerce sales will account for more than 72.9% of total e-commerce sales compared to 58.9% in 2017.
These figures come with no surprise. In addition to continually improving smartphones and shop systems, the main advantage of m-commerce is clear: your phone is always with you, and you can buy whatever you want between writing a message to your friend and reading the latest news.
The biggest m-commerce trends in 2020 and beyond
As the m-commerce landscape quickly changes, let’s have a look at the most interesting trends we can observe this year.
Trend 1: AR to help to build a stronger brand
Augmented reality is the enrichment of the real world with digital data that opens up new worlds for online trading. For retailers, AR is a great way to provide customers with a product to try at home without having to send it back and forth. The technology also gives sellers new marketing tools that allow them to catch the shoppers’ attention more effectively.
Different studies show that AR brings a unique, more personalized shopping experience, therefore, increases the customers’ engagement and satisfaction. According to the Retail Perceptions survey, 71% of shoppers would be more loyal to a brand if they worked with AR. The same study reveals that 40% of people would be willing to spend more money on a product if they could try it with the help of AR before they buy it.
Some brands are already using AR, trying to grow the customers’ loyalty and engagement. For example, the Sephora Virtual Artist app allows users to test different makeup products virtually simply by uploading their photos to the system. And Zara’s app enables customers to see the virtual models who wear the selected brand’s clothes. It looks like AR will continue to exert its influence on the m-commerce world in the near future. Notably, in the course of the 5G network development.
Trend 2: 5G to boost the retailers revenues
Faster data speeds, lower latency, a higher connection density, and many other advantages go hand in hand with the expansion of the 5G network, which will have a significant impact on the m-commerce world. 5G is expected to be nearly three times faster than 4G / LTE, which for the m-commerce industry translates into better apps and a more significant number of online consumers worldwide.
The 5G technology will make online shopping experiences much easier and more convenient as consumers will be able to make transactions wherever and whenever they want, without worrying about load times. Analysts predict that the higher speed thanks to the 5G, will lead to a noticeable growth in sales in the m-commerce field. According to Adobe forecast, the new standard can bring to $12 billion in additional cash for the mobile trade only in the US.
The technology also provides new opportunities for e-commerce providers when designing online shops or product presentations. In particular, 5G creates a much more favorable environment to work with video content.
Trend 3: Chatbots to enhance the customer experience
Сhatbots are already widely used by people to help them accomplish various tasks – from getting weather forecasts to reading news, from ordering a taxi to health consultation, and so on. What people especially value about chatbots is the ability to solve their problems fast. HubSpot data shows that 71% of consumers choose chatbots for that very reason – the speed.
Chatbots are successfully applied in many areas of m-commerce industry such as:
- Customer service. You can reach 24/7 hours a day, and they are free and easy to use.
- Shipment tracking. When does your package arrive, or where it at the moment? Chatbot has an answer to that.
- Payments. In some countries, you can send and receive money to friends with the help of Facebook Messenger.
- Assistance. Some shopping chatbots can give you recommendations or even put together complete outfits.
Communication with chatbots is already a reality, and their popularity is expected to increase further this year. As Gartner predicts in 2020, customers will manage 85% of their relationship with the companies without interacting with a human.