Mobile Commerce: Trends & Forecasts

Mobile Commerce: Key Insights 

• Smartphone Dominance: Smartphones are now the preferred platform for online shopping, especially during peak times like Christmas and Cyber Week. Advanced features such as visual search and personalized apps are significantly enhancing the mobile commerce experience. 

• App Market Leaders: Native eCommerce apps comprise 49% of downloads and achieve notable user engagement, especially in Latin America. 

• Daily User Activity: Supermarket and Convenience Store apps, along with dedicated social commerce platforms, have shown a higher daily active user rate than their download figures might suggest, driven by the frequent need for groceries and appealing offers. 

• Resilient Growth: Despite a slight global decrease in the total hours spent on shopping apps in 2023, mobile commerce is flourishing in emerging markets. 

• Mobile Upsurge: Mobile commerce continues its upward trajectory as the leading shopping channel, with its share of eCommerce sales increasing from 40% in 2017 to an anticipated 63% by 2028, marking a major shift from desktop to mobile shopping.

Although we take them for granted, smartphones have relatively quickly become an integral part of most people's lives. Of course, it didn't take long for online shopping to adapt and transform over the last decade or two to become increasingly mobile-friendly. 

Mobile commerce has long taken center stage as a dominant force driving the way we shop. It's clear that the convenience and immediacy offered by mobile devices continue to attract consumers in droves. Last year alone, U.S. shoppers spent a staggering US$470 billion on purchases from mobile devices, a near 12% increase from the previous year. 

In understanding the impact of mobile commerce, it is key to focus on why the trend is so relevant, but also what time periods we see spikes in mobile commerce usage.

Why Use Mobile Commerce? 

Mobile devices, especially smartphones, have become the preferred tool for online shopping, accounting for 63% of online sales during key shopping days like Christmas in the U.S. 

This trend is supported by the integration of advanced features like visual search, which platforms like Alibaba and Amazon offer, making it easier for shoppers to find products instantly by uploading photos of items they're interested in. Such capabilities enhance the mobile shopping experience, further cementing the role of smartphones in eCommerce.

Moreover, special shopping periods such as Cyber Week and cultural events like Ramadan have shown significant mobile commerce activity. During these times, consumers are not only looking for convenience but also for quick access to deals and special offers directly from their mobile devices. 

In turn, retailers are adopting the mobile-first approach by enhancing their apps with features tailored to improve the user experience. From personalized shopping journeys in apps like Countdown and Shein to offering mobile payment options, which saw a 57% adoption rate last year, mobile commerce is not just about buying – it's about creating an engaging and seamless shopping environment. 

Naturally, applications are an important part of mobile commerce. But not all retail apps are created equal.

eCommerce Apps Make Up Half of Retail App Downloads... 

Based on our analysis (see chart below), native eCommerce apps dominate the retail space on mobile. 49% of the most downloaded retail apps this year are dedicated eCommerce stores or marketplaces allowing consumers to purchase products right on their phone.

While the eCommerce app share for daily active users is slightly lower, the mobile applications of Amazon, Alibaba and MercadoLibre still draw the largest share of consumers among the top apps. eCommerce apps have an even larger presence in Latin American countries, both in terms of downloads and daily active users.

... But Users Are Relatively More Active on Supermarket & Convenience Store Apps 

In comparison to their downloads, Supermarket & Convenience Store apps make up a larger share of daily active users. As consumers are shopping for groceries more frequently, there is an increased appeal to check for regularly changing offers and discounts. 

The disproportionate share of daily active users in the Other category can be attributed to dedicated social commerce apps. Combining eCommerce with social media, consumers spend a large amount of time on these platforms. 

But how has the trend of time spent on shopping apps changed over the years? Are online shoppers spending the same amount of time on these apps?

Hours Spent on Shopping Apps Declined in 2023 

After double-digit growth in the early pandemic times, the total amount spent on shopping apps decreased last year, as per data from data.ai. While consumers still spent more than 100 billion hours on mobile to shop in 2023, this is a 1% decline compared to 2022. This is also an indication of the economic challenges facing the eCommerce landscape in 2024. However, mobile shopping hours are still up 25% over numbers in 2020.  

Not all countries are experiencing this slight contraction. Large Western retail markets saw an even stronger decline, indicating a level of mobile saturation in these countries’ eCommerce landscape. Usage in the United Kingdom fell by 54 million hours. In contrast, mobile shopping hours in growing markets such as Brazil (+30%) or Mexico (+7%) are still on the rise.

Mobile Will Make Up Almost Two Thirds of
eCommerce Sales by 2028 

As we look toward the future of mobile commerce, the trajectory is undeniably upward, with mobile increasingly becoming the primary channel for online shopping.

Since 2017, when mobile devices accounted for 40% of eCommerce sales worldwide, there has been a steady increase in mobile shopping. By 2022, mobile took the lead, capturing more than half of all eCommerce sales with 51%. This marked a significant turning point, showing that most consumers preferred their mobile devices over desktop computers for online shopping. 

In 2023, this preference has only grown stronger, with mobile's share rising to 54%. As we move into 2024 and beyond, the trend is expected to continue. Projections for 2024 forecast that 56% of all eCommerce sales will be made via mobile devices. Looking further ahead, by 2028, it's anticipated that the mobile share of eCommerce sales will reach an impressive 63%.

Mobile Commerce: Closing Thoughts 

As mobile commerce slowly but surely becomes the standard, the emergence of Generation Alpha illustrates its growing relevance. These digital natives, born into a world where technology is a staple, are set to further elevate mobile commerce as they favor smartphones for their shopping needs. 

Their instinctive use of technology will push businesses to continually enhance mobile shopping experiences, ensuring that mobile commerce not only grows but evolves with each tech-savvy generation. This shift signifies a future where mobile shopping becomes even more intuitive and integrated into our daily lives.