Mobile consumers continue to grow at an exponential rate across the globe. With slashing internet costs and smart phones in everyone’s pocket, mobile commerce is not far away to capture $31 billion market. Smartphone sales are up by 63.1% from 2010 and people are seen to engage themselves in smart phones for some definite time per day

Undoubtedly, growth of mobile commerce is triggered by the increasing use and demand of smart phones and handheld devices. Numerous applications to comfort consumers, reliable security and a swift technology have reinforced the penetration of mobile commerce. Transactions through mobile devices have picked up sales in great numbers and the evolving use of electronic devices among all ages implies a sound base for mobile commerce. It strengthens potential scope of mobile commerce in e-commerce industry. IMRG and Capgemini data depicted an increase of sales through mobile devices from 11.6% in 2012 to 23.2% in Q2 2013

$31B mobile commerce market by 2016

Accelerating mobile commerce are ushering way for its growing presence in the e-commerce market. TechCrunch presents a report based on Forrester’s new project report that mobile commerce in the U.S will grow at a CAGR of 39% and can hit $31B by 2016. Forrester finds that more online retailers are adopting mobile technology to accomplish commerce, with 91% of current e-retailers having a mobile presence. This anticipates potential ascend of mobile commerce in the years to come. Even then, $31B mobile commerce market represents 7% of the total e-commerce field and that accounts for a 1% of the total retail sales

Key factors leading to growth in mobile commerce

Mobile features: Factors contributing to growth and rise of mobile commerce such as enhanced security, mobile responsive website and comparative pricing would be determining factors for mobile commerce to continue to domain

Growing online customers: Customers inclining more towards online shopping stand testimony to mobile growth and its surge in coming years

Enterprises online presence: Unable to ignore the prospect of online customers, brick and mortar stores are concentrating on their online presence. As regards to increase in online revenues, IBIS World research forecasts an 8.6% per year increase over next five years. Stores also find a merit in moving at least a part of their products to online in order to cut costs

Online customer satisfaction: Ease of shopping, free home delivery, discounts on products and easy returns make customers happy and satisfied. Online shopping relieves time of people and makes them free for other activities besides the freedom to shop from any location. This in turn is contributing to mobile commerce boom. A survey of U.S. online customers found that 82% are satisfied with buying experiences that began and ended with the online store. Satisfaction dropped to 61% when they researched online and then bought in a store

Mobile commerce and retail industries – which sector sees the greater sales?

Mobile device is becoming an effective tool for business transaction. Electronic goods, restaurants, books and fashion retails are some of the major industries witnessing the tweak in online customers from physical stores. Forrester research predicts probable growth of complex purchases too in upcoming years. The table below reflects popular products purchased through mobile devices on the basis of research conducted by Nielsen Research in Australia

Products/ Services Percentage of transaction through mobile devices
Restaurant and take-away meals 23%
Books, magazines, CD’s and DVDs 20%
Grocery items 19%
Electronic goods and technology services 16%
Fashion and accessories 13%

Therefore, mobile commerce is reshaping the present retail industry. Smart customers with poor time and growing reliable mobile transactions lay down the yardstick of mobile commerce. Therefore, it is not far to witness the $31billion market of mobile commerce industry by 2016. Less hurdles, ease shopping, advanced technologies, advertisement and promotions will greatly impact the competition, rise and fall of mobile commerce.