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What You Need to Know about m-Commerce

April 15, 2019

The world of retail is always evolving and customers are increasingly relying on new technology to make their purchases. For wineries, this means it’s essential to keep track of trends to make sure you’re giving shoppers what they want.

And the biggest trend of the 2019 is no doubt m-Commerce.

So what is m-Commerce? Unsurprisingly, it’s the purchasing of goods via your mobile phone. A natural extension of e-Commerce, m-Commerce has been growing in popularity for awhile, but we think it will really take off this year.

What do you need to know about m-Commerce. Find out below.

m-Commerce drives traffic

89% of Australians now have a mobile phone so it’s no surprise that retailers are seeing over 50% of their website visits coming from mobile devices.

What does this mean? Your website needs to be optimised for this traffic. Smaller screens often mean that your site will look different and may load poorly. A good designer or template will do this for you, but if you never have, try and navigate your website on your phone right now. If you struggle, it’s worth addressing this ASAP. You should also make a habit of checking any future updates on your phone as well.

It’s also worth looking at the load time of your site. A Google study found that 40% of mobile visitors will leave a page that takes longer than 3 seconds to load, so make sure you take that into consideration.

m-Commerce drives sales

While m-Commerce has been increasingly important for anyone selling online, it was Black Friday 2018 that proved exactly how crucial it will be moving forward.

Examining their data from the four day sale period, Shopify found that 66% of sales happened on mobile and while this is partly indicative of the work Shopify has done to make mobile shopping easy, it is a trend that’s reflected across the board. On Cyber Monday alone, over 50% of sales happened from mobile phones.  

And it’s increasing

Compare the results of Black Friday 2018 to the previous year. In 2017, the traffic from mobile phones was only 46.1% of all traffic while mobile sales only accounted for 29.1% 

This is a huge increase in only 12 months and with this in mind, it’s unsurprising that by 2021, mobile phones are expected to account for 54% of total e-Commerce sales.

But it’s not all good news

When considering online shopping, there are two important metrics to consider – your average order size and your conversion rate. Unfortunately, on these two figures, the jury is out on m-Commerce.

Some studies have found that conversion rates on mobile phones are now similar to that on desktops but others have found that it’s almost half of the desktop rate. In addition to that, studies have found that the average order size on mobile phones remains about 40% lower than on desktops.

So what might be causing this? The average order size disparity has remained for the last three years and is likely an indication that customers still prefer desktops for high value transactions, while the potential issue with conversion rates may suggest the need to further optimise checkouts for mobiles. This idea is backed up by the increased adoption of one page check outs and mobile wallets, two trends that make it much easier for customers to shop on their phones.

But customers shop differently

The main thing to consider is that very few people only shop from their phones. Instead, it is likely they are engaging in an omnichannel experience ie interacting with your brand in different locations before they make a purchase. For example, a customer might go to your website on their mobile phone before visiting your cellar door and then two days later complete a transaction on their computer.

Because of this, it’s important to make sure that your customer experience is consistent across all of your channels, including your cellar door.

In addition, customers are more likely to seek out alternate sites and information. This is particularly true if your website is poorly designed for mobiles, with 73% of consumers saying they would look for an alternative.

Finally, there is the issue of apps for online shopping. While consumers’ love of apps remains, for shopping it’s less clear. Customers are divided on whether they prefer a branded app or an optimised website, but studies have found that app users do spend more on average. Unfortunately there is no easy answer for this, but it is something to consider for anyone wanting to grow m-Commerce sales.

Want to find out where you stand?

Our free e-book is the perfect summary of the Australian wine industry. Discover key statistics and trends to identify areas for improvement and evaluate your performance. 

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