If you keep up with the digital world, you know that a business requires more than just a website. Email marketing, podcasts, website banners, Facebook/newspaper advertisements, etc. are some of the ways business owners use to attract customers. But now along with this mobile apps also become an integral part of online business. People now see that mobile apps are a big part of building relationships between businesses and customers.
In particular, the shift to an app-centric strategy has proven fruitful for the e-commerce industry. It is because more than half of all internet traffic now originates through mobile applications.
Amazed right? Take a look at the graph below to get a clear picture:
Number of smartphone subscriptions worldwide from 2016 to 2021, with forecasts from 2022 to 2027
Image Source:- Statista
Statista says that over six billion people now have smartphone subscriptions, which is expected to rise by several hundred million over the next few years. In that order, the largest population of smartphone owners is found in China, India, and the United States. Some reports also show that nearly 79% of smartphone owners have made transactions using their handheld devices. In 2019, mobile commerce was projected to generate a global transaction volume of $2.3 trillion. The current findings can have outdone these inferences. These estimates further demonstrate the superiority of mobile apps over competing digital mediums.
By seeing the above stats and information, it is clear that mobile applications are booming the eCommerce business. Whether it’s your favorite local coffee shop or the downtown salon you frequent, chances are good that they have their own specialized smartphone app. When it comes to cutting-edge digital marketing strategies, these businesses are light years ahead of the pack. If you’re still on the fence about whether or not to design your own mobile app, consider the following list of advantages. Have a look at this quickly.
Why are Mobile Apps Dominating the Market?
Did you know that U.S. businesses have been using mobile apps to communicate with consumers and clients as of February 2018? And 28% of small companies in one survey said they were reluctant to develop a mobile app. Of all small businesses, 42% already had a mobile app. The use of applications designed for cell phones has become commonplace. With the assistance of one of the numerous fascinating mobile applications at our disposal, we are able to perform any and every imaginable work.
Developing a mobile application for your business is not just the newest trend; it is also a promising approach for entering a new market with a lot of potential for financial success. Talking about potential financial success, today’s MVP (Minimum Viable Product) development is also a center of attraction for business owners. It is because it enables you to collect the maximum amount of validated learning about customers with the least amount of effort.
Your clientele’s continued participation is the result of this effort. It is essential for business owners to understand that mobile apps are a vital tool in their toolbox. Build up a consistent customer base that is continually expanding over time. Mobile applications are becoming increasingly commonplace in organizations of all sizes, from large to tiny.
The Money Made and Spent on Shopping Apps
Over the past two decades, the online retail business has consolidated into a small number of megastores that carry everything from books to gadgets to clothing to concert tickets. Amazon was a pioneer in the expansion from selling a single type of product to selling everything in North America and Europe.
Prime was first introduced in 2005 to expedite delivery; the company has since expanded the program to include video streaming, music streaming, and other premium offerings to increase its client base. Over the past five years, Wish and Wayfair have emerged as severe competitors to Amazon in North America. However, Amazon continues to dominate in revenue and user activity, with a share of 15.3% of the US e-commerce market in 2021.
Amazon has had a hard time containing new competitors outside of North America. In the Indian market, Shopee and Meesho have more downloads and market share than Amazon. Statista estimates the global app market would generate $430.90 billion in sales by the end of 2022.
Image Source:- Statista
Key Mobile Commerce Statistics
- Mobile commerce accounts for 31% of all online retail sales in the United States.
- Among internet shoppers in the US, 35% only utilize mobile devices.
- Sales from mobile devices in the US market total $338 billion annually.
- According to industry predictions, there will be an estimated 187.5 million mobile shoppers in the United States by the year 2024.
- The conversion rates of mobile apps are three times higher than those of mobile websites.
- Consumers who make purchases via mobile devices often spend $4
- Approximately 53% of smartphone shoppers make purchases directly from brand-specific applications.
- In the next year, 42% of smartphone owners intend to increase the money they spend purchasing their devices.
Why Mobile Apps are Essential for eCommerce Business?
Smartphone applications have surpassed traditional websites as the preferred method of access for consumers. When it comes to making a purchase, having access to an eCommerce app on a mobile device makes the process much more convenient. In addition, you can shop online without worrying about forgetting the website’s address or your login details. Mobile apps also offer greater productivity and safety than conventional browsers. Here are some of the top reasons that will show you the importance of building an eCommerce mobile application.
1. Customer Engagement
Modern customers expect brands to provide them with a seamless and individualized experience throughout their interactions with the business. It will not happen if you only use your website to communicate with your customers. Choose mobile apps that make repeat purchases simple for your clients if you want them to buy from you frequently. You can learn a lot about your customers by integrating a mobile eCommerce app with cutting-edge technologies like Machine Learning, Artificial Intelligence, augmented reality, and virtual reality.
- In other words, what do your consumers enjoy most?
- When do they typically make internet purchases?
- How long does it often take them before they decide to purchase?
Well, if you have the answers to such questions, you’ll be able to provide your clients with a shopping experience tailored to them, ultimately leading to an increase in sales.
2. Brand Recognition
Enhanced brand recognition is a crucial advantage of investing in mobile eCommerce app development. It’s also the primary benefit of doing business on a mobile device. The vast majority of today’s consumers spend considerable time on their mobile devices, making it imperative for firms to develop a mobile eCommerce platform to facilitate communication with these customers.
Users of apps on mobile devices are known to become upset more quickly due to the smaller screen size, with data showing that 32% of users will remove an app if they find it difficult to use. The result is a poor quality of service for the end consumer. This is why companies should focus on providing their customers with a simple and intuitive mobile app experience.
3. Great Customer Reach
Mobile applications are the most efficient way for a business to engage with its customers and keep them as clients, regardless of whether the business operates locally, nationally, or internationally. Developing software for a startup that is well-planned out enables you to send push alerts to your clients, enabling you to maintain contact with those customers.
Make it possible for your clients to get in touch with you whenever they have questions about their issues or require assistance with a problem they have already reported. This will increase customer loyalty to the brand, in addition to increased sales, recommendations, and word-of-mouth.
4. Builds Strong Business Relation
If you want to build a strong business relationship with your customers, then mobile app development is one of the best ways to do that. You can build a stronger relationship between businesses and their clients with the help of mobile apps. On social networks, members are delighted to talk about their shopping experiences, offer feedback on other users’ purchases, and trade links to beneficial websites. Consider integrating a social networking site within your app to make it easier for users to provide feedback on your products and services.
You can use these powerful strategies to promote your product or service, increase awareness of your company, and bring in new customers. In addition, there are great options available for mobile users to receive push notifications informing them of specials, discounts, and freebies as they become available. When customers learn that they may cut costs by shopping at specific stores more frequently, this indicates that they will have a greater propensity, from the standpoint of pure psychology, to shop at those stores more regularly.
5. Enhanced UX (User Experience)
Your store’s visual appeal directly impacts customer foot traffic and, by extension, sales. Users of a website anticipate simple menus and links to locate the information they require quickly. The layout limitations of mobile apps might sometimes work to your advantage. To be more specific, if you design your business for mobile displays, you can avoid cluttering the interface with unnecessary buttons and banners, which can improve the shopping experience for your customers.
Customers will be more likely to make purchases and return to your eCommerce app in the future if there are fewer barriers to doing so. Take a look at how the Asos app looks. It’s simple and uncomplicated, with filters presented separately and available on demand and a heart icon allowing users to access their bookmarked things quickly.
6. Increased ROI
The combination of satisfying UX, simple navigation and usability lead to high conversion rates. Mobile apps increase the percentage of users who complete the desired action compared to desktop and mobile websites. As a result, eCommerce app conversion rates are three times higher than for mobile websites and one-and-a-half times higher than for desktop sites.
In addition, customers who access your store through an app are likely to view 4.6 times as many products as they would in their mobile browsers owing to optimized item display. Lastly, the average order value in apps is 140% and 130% higher than on mobile sites and desktop sites respectively.
7. Lower Mobile Cart Abandonment
Shopping cart abandonment is a severe problem in the online retail industry. Convincing shoppers to put products in their shopping carts is one thing, but getting them to pay for those items is another. As per Baymard’s report, the typical percentage of unfinished transactions is 69.23%. In addition to fixing these problems internally, an eCommerce app can drastically cut the number of clients that abandon your company. Because of the streamlined nature of the mobile app checkout procedure, shopping cart abandonment rates are significantly lower.
Users can make purchases with a single click because of the system’s ability to store shipping and payment details. Thanks to this feature, customers can complete their purchases more quickly and with fewer interruptions. In addition, customers who visit a shop but are unsure about what they need are less likely to make a purchase. Your website’s desktop version does a better job of encouraging this kind of action than your mobile apps do. Customers that visit your store via the app are probably set on making a purchase.
8. Visibility & Loyalty
A well-designed, fully-featured app can do wonders for your startup’s profile. If you need help adding a Reward system to your app, you can find iOS and Android app developers to help you out. Taking part in such a program can open up a wealth of doors for your little company. Customers are more likely to download your app if it is well-designed, simple to use, and runs without hiccups. It can aid in the promotion of your startup on the web and increase its overall exposure. By tailoring the app to each user, you can increase brand loyalty and foster a positive image among your clientele.
No company, small or large, can succeed in today’s market without first developing an app for mobile devices. If you’ve read this far, you’re probably aware of the benefits that mobile apps may provide to your company. However, since new mobile apps from a wide variety of sectors flood the app store daily, it might be challenging to stand apart. Thus, if you’re thinking of creating an online presence for your online store, then you should build your own eCommerce app, you need to develop a unique strategy that works for your company. Having a trustworthy mobile app development business on your side when you have a fantastic idea for a mobile app might be a huge boon.