The e-commerce medium has accounted for 8.6% of total retail sales during 2011, up from 7.6% in 2010 (Source: Internet Retailer). This figure will even go up 3 to 4 times the old in the coming year. In a survey, 6 out of 10 people say they have made a purchase through their mobile. Not just the regular age groups with whom the medium is famous, but also the 55+ group has started to respond well to the trend, and there has been a significant increase in purchase rate, not just visiting apps.
Tip: A real example is Walmart, which reported a massive increase in mobile orders from older demographics after launching a simplified mobile app in 2013. They optimized font size, checkout flow, and added cash-on-delivery options, which helped increase conversions among first-time mobile buyers.
Demand for good app developers
The real challenge for any eCommerce business owner comes when he tries to find the best eCommerce web developer or Mobile eCommerce App developer who could satisfy him with all that he wants for a reasonable price. I read about an ideal example Mobile Commerce Application developer recently: MobeCommerce. And there are a dozen more I can actually list as ‘good’.
A perfect Mobile Commerce Application is the one that meets all expectations of the customer from the user interface and constantly improves the quality of the app by adding new features.
Tip: A case study worth noting is Myntra, which shifted entirely to mobile app-only commerce and invested heavily in UI, navigation speed, and personalized suggestions. By working with experienced developers and running multiple usability tests, they achieved a 70% mobile conversion rate within a year.
Suitable for any business
Many of the senior players in medium-sized businesses are still under the myth that Mobile eCommerce Apps aren’t really necessary and that they can do without them. I am telling you, I have been watching this arena for a long time and I have heard and read more than a hundred success stories of brands that reinvented their poorly performing business with the help of a Mobile eCommerce App. The mobile device is more personal to the consumer than a computer. The typical online user has started to trust that he can boldly make any purchase through a click on his mobile device without worrying.
Tip: A best example is Dominos Pizza, which was almost on the verge of shutting down in many regions until they launched a super-fast mobile app. After adding one-click ordering and live tracking, they saw mobile orders rise by 80% and total revenue increase by 14% in the first year.
Sustaining Website Activity
Thriving through a Mobile eCommerce App doesn’t mean that you have to take your regular website for granted. Create a new plan in which your website could still retain a certain percentage of sales through itself and methods in which it would bring your customers to your Mobile Commerce Application and vice versa. Just as you plan with ideas to keep your Mobile eCommerce App engaging and busy, work out such ideas for your website as well. See in what ways your Mobile Commerce Application could improve the visit rate for your site. Do not forget, eCommerce is also significantly relied upon by the conventional eCommerce website platform.
Tip: A case study: Amazon uses a dual-platform strategy where mobile apps encourage product browsing, but desktop still wins for bulk purchases. They track user behavior across both platforms, recommend saved carts through push notifications, and maintain high retention without favoring one channel over the other.
The future of eCommerce
Because of the glamor and ease that it holds, there will be more new players coming in and your competition will intensify. No matter how much you invest in your technical structure to improve the experience, a small competitor can overtake you with an idea alone. Train your mind to think totally out of the box and create foresightful strategies to keep yourself ahead of others always.
Tip: One example is Club Factory, a small startup with limited tech budget but a unique idea — low-cost international shipping through a mobile-first app. They disrupted an established market and reached over 40 million users in India, proving that innovation often beats infrastructure.
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