Mobile now makes up around 1% of US retail spend, but has been predicted that this number will increase significantly in 2015.
There are several m-commerce companies who have made significant gains in 2014, such as Über, who are now worth an estimated $41 billion, up from $17 billion at the start of the year.
This kind of growth and the profits that surround it are too big to ignore and we have seen that major players have even jumped on the trend.
For instance 2014 saw 8% of Amazon’s orders come through their apps, which for a company that had a $89 billion turnover in 2014 alone, represents $8.8 billion. This is a huge amount from a company that is only really in its infancy regarding wholesale m-commerce, like app platforms or media. It is essentially showing the impact that having quick access to products, means that consumers are more likely to buy them.
One of the reasons attributed to this success has been the use of one-click-buying on the site. The idea behind this being that you can buy an item without needing to add your card details every time. Many people dislike inputting card details on mobile devices as it is often hard to read/input accurately, and there are also security concerns around it.
This is something that Apple have made the most of since they launched the App Store and iTunes. 2014 saw them record a 36% year-over-year increase in revenues from their App Store, which is likely to have brought in around $3.5 billion from app sales alone. This does not account for the huge numbers of downloads on their iTunes platform, which represents the largest source for music downloads online.
M-commerce offers this ease of payment that many look for today, as the single access element of most mobile devices allows for this rather than the frequent multi-use desktop computers than most traditional e-commerce sites are designed for.
Mobile is also leading the way in ease of physical payment.
We have seen with Apple Pay, that contactless payment and authentication through biometric data through your phone is becoming more popular. The ability to pay for something whilst also verifying your identity through it, has significant appeal to many people.
Many shops are now adopting new contactless payment methods, which will increase the potential for people to pay through their mobile devices.
In addition to these mobile centric purchases, we are also seeing multiple apps that are giving consumers a better understanding of what they are buying and whether or not they are getting a good deal.
These include apps where barcodes can be scanned to see where they may be able to get the same product for less elsewhere.
Mobile is having a significant impact on commerce throughout the world and is intertwined not only with mobile only purchases, but as we have seen with Amazon, are transferring to the physical world. They are also impacting on customer choice, better informing them of how much they should be paying for items and where they can get them cheaper. When they are at the point of sale in a brick and mortar shop, mobile is even giving them a simple way to pay.