Importance and Benefits of Mobile apps for Ecommerce companies

A lot of businesses, small and big alike, have experienced a sharp decrease in their revenue, or at least in the growth rate.

Rahul Kumar
Apr 3, 2018 · 6 min read

mobile ecomerce business in global

The level of competition in any business, be it e-commerce, software or even auto industry, has always been brutal. And to make no mistake, it will continue to be so. The most common reason for this problem being faced by businesses might be the digitization all across the businesses.

The situation in the E-commerce sector.
E-commerce companies are suffering the most because of their absence as a mobile app in the phones of customers. The e-commerce sales growth India has been touching the 25% mark.

The scope of growth for the small and medium e-commerce players has not been as much as that of major players like that of Amazon, Flipkart and Myntra despite the fact that the digital population of India has reached to 462.1 million(Source: Statista). So, it remains a mystery to many e-commerce companies why their growth is below the average growth of whole e-commerce market.

Competition Indicators in E-commerce
The nature and playing fields of this competition are changing at an inexplicable speed. But there are many other indicators which directly imply that the e-commerce companies should have an enormous growth.

Today, with an increase in smartphone users worldwide from 1.57 billion to a whopping 2.32 billion, the whole dynamic of reaching to the end customer has been made tough like never before.

Another important report prompted that the time spent per day on mobile devices by an average human being has increased by 575% in the last three years.

With all these stats, millions of new and old smartphone users coming to the digital world and the sharp growth of e-commerce sector. Why have the small and medium e-commerce players not managed to increase their market share?

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How to boost your sales by 200% — The answer is Mobile Apps.
Yes, the mobile apps are the new way into the minds and lives of customers. The fact that the digital population of India has reached to a staggering figure of 462.1 million has not helped most of the e-commerce players as they would have liked, or expected to.

This is because, out of the 462.1 million users, 442.7 million users are mobile-internet users. And when it comes to the smartphone users, 90 percent of their time spent on mobile apps while a small 10 percent goes to the World Wide Web(Source: Statista).

With this logic, the small and medium business players which do not have a mobile app, are having the problems of less or no growth in customers, and hence revenue. Let us discuss how having a mobile app will help your business.

The whole ecosystem of marketing and branding has been revamped with the increased usage of smartphones, with 66 percent of world’s population having a smartphone.

As the great Winston Churchill once said,

“To improve is to change, To perfect is to change often.”

The world is witnessing a shift of users from desktop to smartphones. This shows that having a mobile app is a necessity for businesses, whether it is a restaurant, a saloon in the city, or even in the retail sector. Mobile apps are the new way to increase revenue as it helps you with increased proximity to the prospective customers and capturing the orders and attention from the customers who are on the go.

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Who else is going to Mobile Apps?
Almost all the top players, in all the businesses, like Google, Amazon, Youtube, Facebook, Snapchat, Forbes, and other news based sites such as Financial Times, The Huffington Post, Bloomberg and thousands of others.

It must be interesting for most of us to think that all these companies, they already had a huge market share and customer following on their websites.

The users of these companies were having no or little problem in going to the world wide web to use their product and sites. They still have their websites up and running, and they do spend a hefty sum of money and put a lot of efforts in the optimisation of their sites.

Then, why did they invest so heavily in the apps where the complexity is high because of the UI/UX design considerations and many other notorious issues. The answer is simple, to increase their customer loyalty by using advanced interface and to attract the customers’ attention with features such as push notifications.

Also, the assumption by many companies that the mobile apps revenue will be doubled to 101.2 billion US dollars as compared to its value of 50.9 billion US dollars in 2016.

Why will mobile apps help you capture the market?
Many research and statistics firms have expressed their concerns and hopes about the emerging importance of mobile apps over the world wide web and how will they tend to dominate the user-business interaction. The research firm, PewResearch Internet

Project in their annual release for the year 2016 that:
“In 2020, there will be a widespread belief that the worldwide web is less important and useful than in the past. And apps are a dominant factor in the lives of people.”

In the light of all these recent developments which has taken place all around the globe and especially in the e-commerce sector, it has been accepted by the concerned people that every business should have a mobile app. However, if you are still skeptical about the importance of mobile apps for the growth of your business.

Here are some points which might help you understand it better:
Constant visibility to the customers — Once the customer has your mobile application, you don’t have to worry about whether or not you will show up in their searches, you are already visible to them.

Statistics have proven that an average smartphone user spends as much as 2 hours 40 minutes per day over 12 different apps (Source: Geekwire).

Now that the observation that customers spend a lot of time with the apps in their phones is established, you can imagine how mobile apps will improve your visibility. There are no middlemen between you and your customers, as there are search engines in case of websites. It has been accepted in the world of marketing and branding that “Visibility creates opportunities”.

The e-commerce is getting a competitive day in day out, getting into the phones of your customers will surely help your company in cutting through the noise.

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