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E-commerce has been on the rise massively in recent years, but it may not be the next true frontier for shopping as m-commerce continues to become more popular.
But just what is m-commerce, and how do we compare e-commerce vs. m-commerce?
Simply put, m-commerce involves shopping through a mobile device (typically a smartphone), while e-commerce involves shopping online through your computer.
And m-commerce is poised to burst into the mainstream thanks to a host of technological advances that are making it easier for people to shop on their phones. Below, we’ve outlined the road ahead for m-commerce growth and detailed some mobile shopping statistics.
Mobile Commerce Industry Advantages
M-commerce has the potential to become a major channel for shopping and to change consumer shopping habits. Consumers are reliant on digital devices now more than ever, and Business Insider Intelligence predicts that mobile will inch closer to becoming consumers’ preferred channel for online shopping within the next five years.
Social media sites such as Facebook, Twitter, and Pinterest have all introduced “buy buttons” that let shoppers make purchases without having to leave the platform. And many retailers have introduced one-click checkout to their sites. This method requires shoppers to enter their payment information once, and then they can use the one-click option to make purchases without having to re-enter it.
As app usage continues to grow, it will be a major contributor to sales growth, especially with Millennials and Gen Zers holding massive spending power. These tech-savvy consumers have the ability to boost volume, as they’re more likely to do a wider share of shopping on their smartphones.
M-Commerce Market Share and Size
M-commerce will rise in the coming years as e-commerce grows to become a larger portion of total U.S. retail sales. In 2019 m-commerce comprised over a quarter of total e-commerce – more than doubling since 2015.
BI Intelligence, Business Insider’s premium research service, used this data to forecast that m-commerce will reach $284 billion, or 45% of the total U.S. e-commerce market, by 2020.
Business Insider Intelligence predicts m-commerce volume to rise at a 25.5% compound annula growth rate (CAGR) from 2019 to hit $488.0 billion, or 44% of e-commerce, in 2024. And there are two key devices driving the m-commerce revolution: smartphones and tablets.
Despite historically suffering poor conversion rates because of customer frustration from having to checkout on a small screen, smartphones have become the driving force behind m-commerce growth. US volume is poised to increase from $128.4 billion in 2019 to $418.9 billion through 2024.
Tablets, though paling in comparison to smartphone m-commerce volume, are also massively contirnuting to the success of m-commerce. Business Insider Intelligence expects $29 billion to be spent on tablets in 2019, increasing to $69 billion in 2024 — an 18.9% CAGR.
More to Learn
Mobile shopping trends are pointing to m-commerce as the wave of the future for shoppers. But mobile shopping is just one aspect of the broader payments ecosystem.
That’s why BI Intelligence spent months compiling the best and most exhaustive guide on the world of payments entitled The Payments Ecosystem Report.
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