The Future Is Mobile: E-commerce Trends to Watch in 2020

Anna Khrupa by Anna Khrupa on June 2, 2020

The Future Is Mobile: E-commerce Trends to Watch in 2020
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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.

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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. 

What is the price of building an e-commerce app?

Various criteria determine the cost of e-commerce mobile app development, including:

  • The platform. The price for mobile applications for Android or iOS platforms can vary. You should make your decision depending on your target audience and business goals. To do so, you should keep in mind that Android has a much wider audience, but iOS users tend to spend 2.5 times more money through their phones. 
  • App functions. The higher the range of features of the app, the more time-consuming backend development is for the developer, the more costly the application is for the retailer.
  • Design and user interface. These two points are essential for the success of the mobile app. The design must reflect the brand well and be catchy and appealing to the users. Good user experience is one of the most important factors in any mobile app, and this is especially important for the e-commerce field.
  • Payment options. The more payment options and the app has, the more people will be able to make purchases through this app. The thing is that each additional payment option your developers integrate will cost you extra money.

Depending on the factors mentioned above, the cost of e-commerce app development may vary significantly. The price of the basic version of the app that includes the product search, ability to place orders, one payment method, and a simple design starts from $20 000. Medium complexity app with more advanced features, including multiple payment options, a wishlist, order history, order tracking, reviews, and loyalty programs, starts from $40000. 

And finally, the price of complex e-commerce application development with complex backends, integrations with third-parties, and cutting-edge functionality (like custom animations, AR/VR, live chats, ability to create personalized offers for customers, etc.) begins at $80 000.

Final Thoughts

As online shopping continues to evolve, your company needs to stay on top of change and adapt just as quickly to meet the highest customers’ demands. Part of this process is learning the industry trends to be able to create exceptional shopping solutions that will bring value to people.

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Written by
Anna Khrupa, Researcher/Marketing Manager.

Anna is a self-motivated and curious research analyst who keeps her eye on digital marketing trends, IT market state, audience response to the content our team puts out, and examines content strategies of competitors. Anna’s multi-tasking skills overlapped with an in-depth understanding of IT outsourcing make her a powerful player on our team. In her free time, Anna likes reading crime fiction and swimming.