According to Adobe Analytics, mobile shopping (also known as m-commerce) is predicted to account for 53% of online sales during the upcoming holiday season, and the data points to a “slow but steady shift in consumer demand for shopping on a small screen.”
Adobe reported that mobile spending has grown consistently by double digits to reach parity with desktop shopping in the first few months of 2024. “On this trajectory, Adobe sees a tipping point in the coming months,” the report said. This comes after mobile already surpassed desktop shopping in November and December of last year, but Adobe expects further growth this year, predicting that in 2025, “mobile shopping will consistently outpace desktop” except during the holiday season.
According to Statista, “In the first quarter of 2024, smartphones accounted for more than three-quarters of U.S. retail site visits and generated nearly two-thirds of online shopping orders.” By comparison, desktop computers accounted for just 23% of retail website traffic but accounted for 34% of all purchases in the country.
The Pew Research Center reported in November 2022 that 32% of U.S. adults said they shop online on their smartphone at least once a week, compared with 21% who did the same on a computer and 7% who shopped on a tablet.
Now, Adobe reports that mobile’s share of online sales has increased year-over-year every month this year, accounting for 46.7% of online sales in January 2024 and 49.3% in July 2024.
But there’s still room to grow: Even though many consumers use their phones to browse and research products (mobile time will increase 20% year-over-year by 2024), only 47% of monthly online sales are completed via mobile, according to research from software firm Quantum Metric. This gap is particularly pronounced in categories like travel and financial services, where even fewer purchases are made on mobile.
Moreover, mobile devices have become an integral part of our digital lives, generating 73% of monthly traffic across industries. Despite this high engagement, mobile commerce has yet to reach its full potential.
The challenge is converting mobile browsing into actual sales. While 75% of consumers browse on their mobile devices multiple times a day, only 26% make daily purchases on their phone. This gap is driven by a lack of trust in mobile transactions for high-value items: only 17% feel comfortable making purchases over $250.
Additionally, nearly half of mobile users experience poor performance, bugs, app crashes, and failed payments. Good, reliable performance is crucial for consumers attempting mobile transactions. “Consumers want a fast experience. In fact, most users expect a mobile transaction to take three to five minutes. If it takes longer than that, 55% will abandon the transaction,” reports Quantum Metric.
The biggest beneficiary of mobile commerce has been social media. Pew Research points out that social media influencers have a significant impact on purchasing decisions, reporting that 30% of adult social media users have purchased a product after seeing an influencer’s post. This influence is even stronger among those who follow influencers, with 53% making a purchase based on these posts. Women are more likely to be influenced than men, with 36% of female users making a purchase after seeing influencer content, compared to 21% of men. Younger users are also more likely to be influenced, with 41% of adults under 30 making a purchase based on an influencer’s post.
Emarketer cites further challenges facing mobile commerce. According to the market research firm, “It is becoming increasingly difficult to acquire new users for mobile apps. Last year, the retail app market became more competitive, with Temu and SHEIN disrupting the market with explosive user growth.”
“Temu and SHEIN have the advantage as newcomers, but they’re also focusing on mobile shopping because they understand that’s the future of e-commerce. Longer-established U.S. retailers have apps but aren’t trying to scale as aggressively.”
Blake Dorosch, E-Marketer Analyst
In general, the rate at which consumers download new apps is on the decline, with a dramatic decline expected until at least 2027. The company also cited data from Adjust, explaining that retention is another challenge, with e-commerce apps seeing high bounce rates among users who abandon within a week of downloading them.
Ultimately, while mobile commerce offers great benefits, it also comes with challenges. On the one hand, it offers the convenience of shopping anytime, anywhere, which is a win-win considering the time people spend on their phones. But many apps have friction points, such as a lack of payment flexibility, that can lead shoppers elsewhere. Additionally, according to Quantum Metric, some users have concerns about mobile security, while others point out a lack of tools compared to desktop shopping.
For retailers, mobile commerce satisfies the desire for instant gratification, and a well-designed mobile commerce experience can increase customer retention. However, mobile commerce comes with challenges, including the need for continuous optimization to keep up with evolving technology.
