The Internet has changed the way we eat.
Now, consumers have the power to buy goods from almost every store in the world more than ever before. That’s why the eCommerce market is thriving.
Technological advances are also transforming the behavior of customers and the way they purchase products and services.
Look about. Look about. Everyone seems to have mobile all the time fixed to their lips.
So it’s no wonder that mobile devices make up more than half of all internet traffic.
Yet mobile users are doing much more than just searching online using these apps. We use phones and tablets to shop as well.
In reality, over the past six months, 62 percent of people owning a smartphone has made a purchase using their app.
Or put it simply, people are buying mobile devices.
From a business point of view, you need to understand and respond to the new smartphone developments.
There are two main ways in which customers can make mobile app transactions. Customers will buy directly from mobile websites or mobile apps.
Some of you may already have a convenient website for mobile phones. It’s just not enough, however.
To optimize your profit potential, you need to create a mobile app.
Use the data and statistics I’ve studied in this post to help you make an informed decision to go mobile or start your eCommerce company with a mobile app.
Key data on mobile commerce
- In the United States, 82% of Internet users used mobile devices to shop online.
- 35% of U.S. users use their mobile device only for online purchases
- In 2017, the US had international export revenue worth $156 billion
- Experts estimate that US smartphone export revenues would exceed $420 billion by 2021.
- There are three times higher transfer rates from mobile apps than mobile sites
- Phone shoppers spend twice the amount of other consumers
- 53% of smartphone users purchase from business-specific apps
- 42% In the coming year, 42% of smartphone users expect to buy more from their mobile devices
Usage and revenue for mobile commerce
Mobile business is on the rise.
It has been rising and in the coming years, it will continue to grow at a rapid rate. To see what I’m thinking about, have a look at this graph.
What part of the revenue of your business comes from mobile devices?
If you haven’t been reaching mobile users, the first thing you need to do is make sure you have a website that is mobile-friendly.
In your smartphone conversion rates, this will make a huge difference. However, a mobile-friendly platform increases the likelihood of a consumer ordering a product or service digitally by 67%.
On the flip side, there is a 61 percent higher risk than the user would leave and go to another website if a website is not nice from mobile devices.
For those of you who actually don’t have a platform tailored to mobile devices, I’m willing to bet you’re trying to drive sales in mobile commerce. Then, people will buy from your rivals.
Don’t get me wrong, to deter you, I’m not doing anything. Implementing a mobile-friendly app is not too late.
In addition to the interface, to be successful, your mobile site also needs to load quickly.
According to Google research, mobile site bounce rates rise to 32 percent when website loading times vary from one second to three seconds.
The chance of a bounce rises by 90 percent if the loading period from one second to six seconds approaches five seconds and 106 cents.
If you’re not sure how well your existing site can do on mobile devices, use a free mobile-friendly evaluation method.
Mobile App Usage
Smartphone apps are not the only way users can shop from their mobile devices.
As I said earlier, the other alternative is mobile apps. For all companies, this has become absolutely necessary today.
That’s because you waste most of your smartphone time using apps.
An average, people use their mobile devices every day for 3 hours and 40 minutes. Just 10% of the time spent on a mobile web browser.
So if you focus on a mobile site alone to drive revenue for your company, there’s a huge opportunity you’re lacking.
The truth is that over a mobile browser, mobile users choose applications. It’s obvious the details.
A mobile app is used up to 10 times a day by 51 percent of people.
Between 11 to 20 times a day, 25 percent of people access a single app. A further 16 percent of mobile users are using the same device 21 to 50 times a day.
So if you’re able to launch an app and get people to download it, they’re likely to open it more than once during the day.
It also improves the user’s chances of making a purchase with each available.
I know the feelings of some of you. Sure, people open dozens of times throughout the day on mobile apps, but what kind of applications will they access? Are they really going to buy products from these apps?
In reality, in terms of year-over-year sessions, shopping apps have the highest growth rate.
Just look at how device forms contrasted to other devices on the chart.
What’s even more remarkable than the overall year-over-year sessions of all types is where retail applications rate.
The use of smartphone retail devices reaches the norm by 48 percent. For any business that sells products and services digitally, this is a great opportunity.
Mobile App Revenue
So how much money is being spent on mobile apps?
As an industry expert, people often ask me if there is a potential for smaller businesses to generate revenue through mobile apps.
There’s a lot of money to go around.
Average revenue from mobile apps per user
You need to get updates to get a good device.
Such updates can eventually turn into dollars as long as you can get people to install the software on their mobile devices. The more customers you get, the more profits you’re going to make.
Which precisely are we talking about here?
Let’s glance at the metrics for various industries and device forms.
Such figures may not seem so big to you at first sight. But once you begin to do some calculations, you can realize how much money you will produce.
Let’s say you’ve got a shopping app for your retail business, for example.
The average revenue per organic customer in a three-month period is $20.63, centered on the metrics in the above table.
Once again, $20 doesn’t seem like much on the table. But if you scale it, think about that amount. If you have 100,000 sales, this means income every quarter is more than $2 million.
You’re going to get $8 million in revenue every year at that pace.
These are figures that are small.
Note, we only use the average benchmark results. If your product moves beyond the estimates, you’re likely to make even more money. Such estimates will quickly be doubled or tripled.
And, with 100,000 copies, the number was. Only wait for your mobile app to hit more than one million downloads.
World revenue from mobile apps
Usage and sales in mobile apps should not be restricted to the United States, although many of the research we have looked at so far has concentrated on American use.
Yet I decided to give you a better understanding of where worldwide mobile app sales lie.
Use of mobile apps is increasing worldwide in prevalence, which translates into revenue growth worldwide.
Gross user revenue increased by 35 percent from 2016 to 2017. That’s a huge number, especially when we’re thinking here about billions of dollars.
I don’t foresee progress to fall in the near future at any point, nor are there any other specialists.
Yes, it is estimated that by 2020 we will cross $189 billion in worldwide smartphone sales.
Why does this happen to you?
Okay, even though you’re concentrating only on U.S. markets today, in the future you could imagine approaching mobile users in other nations. Understanding that there is definitely a chance for you to effectively reach new markets around the globe is inspiring.
Mobile App vs. Mobile Site
Okay, so we talked earlier about the importance of having a website that is mobile-friendly. I even showed you how much revenue mobile apps produce.
So for your company, which one is more important? Comparing the two is energy.
For a brief, both of you need to excel. But with that said, to generate the most sales, getting a mobile app is definitely more important and required.
That’s because, opposed to a mobile website, 78 percent of people would choose to visit an app store. These are the main reasons that consumers prefer mobile applications.
Consumers believe, as you can see, that smartphones are quicker and more accessible than mobile websites.
Oh, and saved their configurations. This is not only convenient for the consumer, it also increases their chances of purchasing. But we are going to talk about that in more depth in the near future.
Here’s another thing to keep in mind. Consumers ordering from a website paid twice as much as consumers purchasing from mobile sites and desktop computers.
In comparison, users are also investing three or four times as much time browsing on mobile apps as on desktop and mobile pages.
Here there’s a theme. The more they spend shopping, the growing their chance to buy and spend more money.
Your most loyal customers will be mobile app subscribers.
That’s because, relative to people buying from a mobile site, they are twice as likely to come to your shop after 30 days.
This is because customers prefer mobile apps over mobile sites. Users receive benefits and bonuses for using the service, helping to personalize their experience.
Through introducing a customer loyalty plan through this application, you will boost your company mobile app.
Knowing the conversion rates is a key component of a successful business in eCommerce.
How many users travel every day to your website? Which proportion of guests converts?
If those figures are too small, the conversion funnel will have to determine what’s incorrect.
To consumers visiting the shop from mobile devices, whether from a mobile site or mobile app, the same ideas can be extended.
Look at the difference between a mobile app and a desktop site.
Consumers access about four times as many goods from a device and add items almost double the date to their cart relative to mobile websites.
Conversions on phones are 130% higher.
What’s the reason? Phones are simply easier to use and simpler to use.
Shopping cart abandonment rates
Mobile apps also have lower shopping cart failure rates and better conversion rates than both online websites and android browsers.
To illustrate my point, just look at these figures.
As you can see, web pages have the three alternatives ‘ maximum failure rates.
With mobile apps, the explanation why cart dropout rates are lower is the same reason why their conversion rates are higher. Mobile apps simplify the process of checking out.
This is why.
This takes a lot of time for a consumer to order something from a mobile website.
Upon attaching an object to their cart, all of their details must be entered. I’m talking about things like:
- phone number
- email address
- shipping address
- billing address
- credit card number
That’s a lot of information on a four-inch screen to click with your thumbs. Even if somebody tries to go through this phase, they’re likely to make a mistake and start again.
But all this information is stored on mobile apps, so less pressure is there.
Consumers with mobile apps will sign out in just a few taps.
And, if they left something in their shopping cart, you have a great chance to finally attract the customer. In addition to delivering cart abandonment letters, you can use push notifications to hit mobile users and inform them about items left in their basket.
This choice is not going to be available from mobile browsers.
The average value of the order
So far we have found that consumers of mobile apps migrate at higher rates than people who visit mobile sites and have lower rates of abandonment of shopping carts.
Let’s now evaluate how much money people invest in various platforms.
The average order rating of mobile apps is 10% greater than that of mobile websites.
So if you want to attract consumers at high rates to spend more money, you’ll certainly want to take advantage of using a mobile app.
To drive business development, this is a winning formula.
Mobile Commerce Sales by Device
Not every mobile device is developed in the same way.
Consumers have different usage rates and habits of purchasing based on the type of product they purchase.
Let’s evaluate some of the various devices and show you what I’m thinking about. Such knowledge can be used to reach the clients on the basis of what they use.
Smartphone vs. tablet
First, let’s talk about mobile devices in two different types.
Consumers with smartphones use their machines differently than consumers with laptops. Smartphones do better when it comes to mobile trading assets.
Smartphones produce more revenue than smartphones, as you can see from this graph.
For the last three years, it has been a phenomenon, and in the future, it tends to move in that direction.
But that doesn’t mean that when creating your mobile app, you shouldn’t have tablet users in mind. A quarter of all smartphone export revenues already pay for tablets.
You have to be confident that every system has a perfect UX.
And make sure you understand the value of screen size and screen resolution. Then you can prepare the proposal and build it accordingly.
Android vs. iOS
Consumers of Apple and Android also act differently.
Many corporations don’t know it, but these two types of people’s spending habits are very distinct. Just look at each operating system’s average amount expended per purchase.
Apple users are spending nearly three times as many Android users as possible.
When you decide to launch the device first on iOS or Android, this is something to keep in mind. Globally, there are more Android users, but more money is spent on Apple users.
With this in mind, whether you grow a mixed app or radical web app, you won’t have to worry about which framework to construct for the first time. This allows you to launch simultaneously on both the Apple App Store and the Google Play Store.
We’ve already covered a lot of details, so let it settle in for a moment.
What does all this mean exactly?
In brief, you need to base your company on mobile users.
Creating a mobile-friendly website is vital, but you will need to build a mobile app if you want to produce the most sales and optimize your ability.
Mobile apps are favored by consumers. That’s where most of the money is spent.
Respond to all the details we covered for contrasting conversion rates, drop-out rates and average order values between mobile apps and mobile websites.
Ios web pages that have outperformed each group.
Now that the need for a mobile app has been acknowledged, it’s time to get started. If you’ve never done this before, this may seem a little overwhelming, but it doesn’t have to be.
We will help you out for those of you who need help in creating a custom mobile app for your company. Simply contact us, and with an app, we can help you boost your mobile business revenue.
Thank you so much for reading!
If you are searching for some professional assistance when it comes to making your website accessible, INNOVINS will support it. We provide comprehensive web design and development products, with more than 1000 sites released.
Do you have a website development and website design requirement or mobile application development requirement? Contact Innovins, as we are one of the topmost ranking web designers in Mumbai. Please give us a call: +91 9987053623