How Will Mobile Commerce Change Retail?

According to Adobe Analytics, mobile shopping, also called m-commerce, is projected to drive 53% of online sales during the upcoming holiday season. This data profiles the "slow but steady shift in consumer demand for shopping on smaller screens."

Adobe reported that during the first few months of 2024, mobile spending consistently grew in the double digits, bringing it on par with desktop shopping. The report stated, "At this trajectory, Adobe sees a tipping point in the months ahead." This comes after mobile already beat desktop shopping last November and December, but Adobe expects even more growth this year, and it also forecasts that "mobile shopping will consistently eclipse desktop" in 2025 outside of the holidays.

Per Statista, "In the first quarter of 2024, smartphones accounted for over three-quarters of retail site visits in the United States and generated roughly two-thirds of online shopping orders." In comparison, desktop computers accounted for only 23% of retail website traffic but were responsible for 34% of all purchases in the country.

In November 2022, Pew Research shared that 32% of U.S. adults said they bought things online with their smartphones at least weekly, compared to 21% who said the same for their computers and 7% for shopping on tablets.

Now, Adobe has reported that mobile share of online sales rose on a year-over-year basis every single month this year, accounting for 46.7% of online sales in January 2024 and 49.3% in July 2024.

Yet this still leaves room for growth. According to research by software company Quantum Metric, although many consumers use their phones to browse and research products — spending 20% more time on mobile in 2024 compared to the previous year — only 47% of monthly online sales are completed via mobile. The disparity is particularly notable in sectors like travel and financial services, where mobile purchases are even less prevalent.

Furthermore, mobile devices are integral to our digital lives, generating 73% of monthly traffic across various industries. Despite this high engagement, mobile commerce has not yet achieved its full potential.

The challenge lies in converting mobile browsing into actual sales. While 75% of consumers browse on mobile devices multiple times a day, only 26% make purchases through their phones daily. Factors contributing to this gap include a lack of confidence in mobile transactions for higher-value items, with only 17% feeling secure making purchases over $250.

Additionally, around half of mobile users experience slow performance, bugs, app crashes, and payment failures. Good, reliable performance is critical with consumers who attempt mobile transactions since "they want their experiences to be quick. In fact, most users expect mobile transactions to take 3-5 minutes. Any longer and 55% would abandon," as reported by Quantum Metric.

One of the biggest boons to mobile commerce has been from social media. Pew Research noted how social media influencers significantly impact buying decisions, with 30% of adult social media users reporting they have purchased items after seeing influencer posts. This influence is even stronger among those who follow influencers, with 53% making purchases based on these posts. Women are more influenced than men, with 36% of female users buying items after seeing influencer content compared to 21% of males. Younger users are also more affected, with 41% of adults under 30 making purchases based on influencer posts.

Emarketer cites additional challenges that mobile commerce faces. According to the market research company, "It’s becoming increasingly challenging to acquire new mobile app users. Temu and SHEIN disrupted the market last year with explosive user growth, intensifying competition in the retail app market."

"Temu and SHEIN have a newcomer advantage. But they are also focusing on the mobile shopper because they understand that that’s the future of e-commerce. U.S. retailers, which have been in business longer, have apps but are not trying to scale as aggressively.”

Blake Droesch, Emarketer Analyst

In general, consumers are downloading new apps at a decreasing rate that's expected to see dramatic decreases until at least 2027. The company also cited data from Adjust, which explained that retention is another challenge due to the high bounce rate of users who abandon e-commerce apps within a week of downloading them.

Ultimately, mobile commerce offers significant benefits but also comes with challenges. On one hand, it provides convenience, allowing users to shop anytime and anywhere, which is advantageous given the time people spend on their phones. However, many apps have friction points, such as a lack of payment flexibility, that could send shoppers elsewhere. Additionally, some users have security concerns on mobile, and others noted a lack of tools compared to desktop shopping, according to Quantum Metric.

For retailers, mobile commerce caters to the desire for instant gratification, and a well-designed mobile commerce experience can boost customer retention. However, mobile commerce faces hurdles such as the need for continuous optimization to keep up with evolving technology.