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Going Mobile: How Smartphones Changed the Face of E-commerce

When was the last time you ordered products on your laptop?

Now more than ever, we’ve gotten used to ordering everything on our smartphones. It’s simply more convenient. Your daily needs like groceries and personal essentials can be ordered through mobile apps. Products that catch our eye like that fishing rod for an upcoming beach trip can be delivered to our doorstep. Even hotel accommodations and flight tickets, which were once done through travel agencies, are increasingly booked on our phones. In 2021 alone, it’s estimated that there are over 5.22 billion unique mobile phone users in the world, according to a report by We Are Social and Hootsuite.

It’s a far cry from the beginnings of m-commerce in the 90s where payments were made through text messages on mobile phones. With the rise of the Internet came online shopping. Today, through the popularity of smartphones and the app economy, mobile commerce or m-commerce is fast becoming the preferred way to shop for many users. During the height of the pandemic, online marketplaces such as Shopee, Lazada, and Amazon saw an increase in sales. According to Statista, M-commerce sales are projected to garner $3.5 trillion in sales in 2021 and make up 72.9% of e-commerce sales globally.

Smartphones today came from a long but recent history of handheld devices, starting from the first mobile phone in 1983. (Photo by Kenny Leys on Unsplash)

So what is mobile commerce?

Mobile commerce or m-commerce is the act of buying and selling online using different wireless handheld devices such as smartphones and tablets. Multiple factors contributed to the growth of m-commerce such as the increasing affordability of smartphones, the growing computing power of mobile devices, and the rising internet user penetration rate globally.

What’s the difference between e-commerce and m-commerce?

E-commerce refers to electronic transactions, including the buying and selling of products, completely online. M-commerce is a specific subset of e-commerce, where the online transactions are made on handheld devices.

M-commerce is used in a variety of contactless transactions such as online shopping, mobile banking, bill payment, and informational services such as news and reports.

It is utilized in different sectors such as financial, delivery and travel services. In the Philippines, in the medical services industry, for example, handheld devices are used in ‘teleconsulting’ or consultation by remote means wherein a patient consults a physician remotely for diagnostic and healthcare advice. Digital wallets in the country also utilize m-commerce through the buying, selling, and sharing of mobile data or load with users. Today, game credits, financial investments, and even health insurance can now be purchased through digital wallet apps such as Gcash and Paymaya.

Online sellers should consider how they are able to make their shops available to customers on different mediums through mobile commerce. Cafe24, the leading e-commerce platform in Korea, for example, makes it possible by offering free store themes for food businesses, jewelry businesses, and many more. These themes are responsive, which means they are optimized for both PC and mobile users.

Factors affecting ecommerce versus mobile commerce

When it comes to selling online, user experience drastically differs when on a handheld device and when on a desktop computer.

On a desktop computer or laptop, the user is usually sitting down and alloting a time to be at the desk. They are scrolling and navigating the internet using a mouse. By the nature of its design, users are more focused and engaged. As a result, when it comes to online shopping, the customer is more committed to the activity because they have more time to research, explore, and enjoy a fuller experience on a large screen. It’s a slower process, but it’s ultimately more fulfilling. Scrolling and clicking on a large desktop screen allows for more freedom and more information to be viewed. As such, when it comes to marketing, long-form written content on a computer is more tolerable and acceptable.

On a wireless handheld device like a smartphone, shopping can be done anywhere in the palm of your hand. Its compact and convenient nature leads customers to decide and pay in minutes. The expected delivery time is shorter as well. Through continuous scrolling and comparing, the customer is taken on a journey to hunt for a good deal, sometimes within the hour. The decision is much faster and gratifies instantly. On a smartphone, shorter marketing contents are more successful. Image use is limited and expected to load fast. Smartphone users are usually used on the go and therefore customers have shorter attention spans on the device. Subsequently, automation is especially preferred on smartphones. Transactions can be done with one swipe or one click. In the end, when it comes to sales made online, mobile commerce is more superior, and it’s fast becoming the preferred method to shop.

While they have their differences, access to the internet is the most prominent factor of concern on both desktop and mobile, as such many stores utilize checkout bags and shopping carts that save a customer’s item even when offline.

When it comes down to it, what every customer wants is quality products and a good experience. (Photo by Omid Armin on Unsplash)

Optimizing your store for mobile sales

Want to sell more on your online store? First, audit your business’ design and functionality not just for PC, but also for mobile. Customers scan and review your product pages and make judgments on a whim. Ensure you make a positive impression by enhancing your store. Here’s our best advice:

1. Keep it simple. It only takes a few seconds for customers to decide if they like your store or not, so don’t overwhelm them with lengthy text blocks and annoying pop-ups. Ensure that your mobile site has fast loading speeds (ideally, 1 second loading time) by reducing the resolution of images and using AMP protocols. On Cafe24, you can use the Google AMP service to increase your mobile store’s loading time 85% faster than unoptimized stores.
2. Streamline the checkout process. Don’t make it difficult for customers to shop. To optimize the checkout process, make sure your call to action (CTA) buttons are always bold and visible, unessential forms and fields are reduced, and text is readable.
3. Plan for great UI/UX design. Good site navigation helps with improving the buyer journey on your store. Meanwhile, a great experience on an attractive site leads to more sales and more returning customers. Ensure that important pages on your site like the category pages are easy to find and click. Consider adding a search box in your header for instant results. Choose responsive themes to enhance your store’s appeal on desktop and mobile devices. A quality website also stands out with a clear brand visual and voice. Great functionality with great design gives the appearance of a trustworthy and credible site that encourages customers to buy. Ensure that your brand colors, text, and messaging are consistent all throughout your store.
4. Utilize mobile marketing. An optimized site should also help you increase your sales. Use SNS marketing and push notifications to your advantage. Use your social media accounts, that are optimized for mobile like Instagram, to advertise your products and services. Additionally, you can add an opt-in form on your store website and create an email list to send coupons, discounts, and promo codes to customers.

💡 Here’s a bonus tip: When it comes to mobile sales, aside from website design and functionality, you can also improve the overall user journey starting from getting awareness for your site. Increase your store’s reach by making your store site easily searchable with SEO. Consider getting a dedicated customer service staff or add an in-store chat box to address the concerns of your customers immediately.

Benefits and downsides of mobile commerce

Before you make decisions around your store regarding your mobile ecommerce strategy, you have to know its weaknesses and strengths and plan around potential risks. Here are some benefits and downsides of m-commerce:

Benefits:

• Accessibility and convenience. Globally more and more people have access to smartphones due to their increasing affordability. In 2021 alone, in a report by Bankmycell, it’s estimated that 80.76% of the world population owns a smartphone, an increase from last year’s 78.05%. Smartphones are also more handy and convenient due to their compact size. The compact devices’ interconnectivity is also preferable for users on the go. Moreover, premium smartphones today have greater computing power versus desktop computers.
• Easier payments. The availability of mobile applications has made it easier for merchants to provide multiple payment options to customers. Top payment service providers like Paypal are now on multiple app stores. Payment through QR codes, e-wallets, credit/debit, and even cryptocurrency has also been made possible on mobile.
• 24/7 internet access through mobile data. Through mobile commerce, online shopping can happen wherever customers are through mobile data, even the lack of Wi-Fi at work or home is remedied by 4G and 5G connections.
• Easier business management. Online sellers can now manage their stores anywhere through their handheld devices. Not only are you notified of new orders, you can also reply to inquiries through mobile, and get updated on orders made on different marketplaces and social channels.
• Multi-channel and multi-device availability. Traditional retail stores benefit from having a physical location and an online store, while online sellers can have multiple sales channels, that can be accessed on desktop and handheld devices, ramping up the businesses’ reach.

Downsides:

• Less customer connection. While mcommerce is seen as easier to use and faster to transact on, customers make first impressions in an instant. So speed is a downside when your mobile store isn’t seen as reliable or trustworthy. Positive reviews help with brand perception but for first-time sellers, offering coupons, connecting with holiday-related promotions, or sending personalized messages should help with connecting to customers.
• More competition online. Since online stores are easier to start, and there is a lower cost to entry, there is more competition for small and medium businesses on mobile-enabled marketplaces.
• Comparing prices is easier. Competition is tougher on mobile, especially when you’re selling on online marketplaces. Just one search on Shopee, for example, gives multiple results of the same product with varying prices, reviews, and shipping options.
• Security and connectivity issues. Many customers hesitate to buy goods online due to potential security and fraud issues. Customers are more susceptible to data leakage, unsecured Wi-Fi connection, and phishing attacks on mobile. Customers also fear their personal and financial data could be stored. The lack of service and weak internet connection is also a drawback to access in less urbanized areas.

We make tools for trends that shape ecommerce

As internet access and mobile users continue to grow globally, it’s safe to say that the future of m-commerce is bright. Businesses directly benefit from expanding their reach on different mediums. Cafe24 recognizes this which is why it has made creating multiple online stores that are mobile-enabled possible. Through its Google AMP service your mobile store’s loading time decreases as well, leading to a more optimized and fulfilling customer experience. When it comes to mobile-responsive web design, leave it to the professionals. You can now download free PC and mobile-enabled themes from the Cafe24 store.

Check out our beauty and cosmetics theme at the Cafe24 store.

While it’s important to optimize your online store for mobile commerce, in our day-to-day lives we have access to multiple devices, not just to smartphones. We use our laptops and computers to work and we still go to our favorite boutique stores to window shop. While M-commerce is essential, it’s also just another channel that you can utilize when starting a business. Maximize your potential by selling on various channels and marketplaces on the platform that gives you global infrastructure and system support, Cafe24.