What is m-commerce?
M-commerce helps businesses to reach customers through different channels, that includes both physical stores and online shops. It is nothing but buying and selling goods and services through wireless handheld devices like smartphones and tablets. For example, customers who cannot head to a physical store due to location restrictions or may include other reasons, can shop, order, and pay online on mobile platforms that include the use of wireless devices such as mobile phones and tablets to conduct commercial transactions online, such as buying and selling products, online banking, and paying bills.
It is for both Businesses to Business (B2B) transactions and business to Consumer (B2C) transactions.
Who is the Inventor of m-commerce?
The term was coined by, Kevin Duffey and Andrew Tobin
And the server was developed in late 1997 at Logica and this won the Financial Times award for “most innovative mobile product,” in 1998.
Read: Ecommerce Business – Explained
Applications of m-commerce:-
- Internet banking:- mobile networking becomes handy when it comes to shopping. In the ICICI, there is an imobile application that helps in the easy transaction.
- Retail applications:- in the upcoming generation, we all prefer mobile shopping and portable modifications. The online catalog is created for the users to buy online without any delay in the purchase.
- Mobile Marketing in m-commerce:- marketing has the key to unlocking business growth. And here comes mobile marketing, the one easy way to reach out to the target audiences. In mobile marketing, there is social media marketing, email marketing, marketing through phone calls, advertisement marketing, and the list goes on.
- Communication:- this communication means the intermediary person who helps with the officers and the customer as well.
- Reserving spots with Mobile Phones:- m-commerce helps in different ways, and it is a very useful yet beautiful way, which is reserving spots, rooms, trips, dine-ins, and the list goes on.
- Mobile entertainment:- innovative ideas will always stand out in the crowd, and subscription plans for television programs, music, podcast, and even youtube videos and the romcom series.
- Mobile ticketing:- buying the tickets for transportation either by bus, cab, train, and flight. The transaction made it easy to avail of the booking.
- Mobile phone access in healthcare:- booking an appointment through a mobile phone, ordering medicines online, and even consulting the Doctors online efficiently help the user.
Read: Top 10 ecommerce affiliate programs
How does m-commerce work?
In most m-commerce-enabled platforms, mobile devices are connected to wireless networks and used for online product purchases and other payment transactions.
If you’re planning for an m-commerce application, the key performance indicators to monitor are:
Total (mobile traffic + application traffic) + average order value and
Value of orders over time.
Similarly, tracking mobile and add-to-cart rates lets developers know if users are moved into customers. Its developers may also be interested in average page load times, mobile cart conversion rates, and SMS subscription reports.
Mobile payment products work in the form of peer-to-peer sharing. Once the mobile device is paired with the user’s bank card information, the product can be paid for by holding the mobile phone up to the payment terminal. Contactless payments using mobile devices using near-field communication technology.
Read: Top 15 Features of Ecommerce in 2022
Types of m-commerce:-
- Browsing online- Surfing through Online platforms like Instagram, FaceBook, Google web pages, and the products officials sites or applications for the purchase like groceries, electronics, fashion, and daily essentials and even decor items is online browsing in the m-commerce.
- App-delivery purchase- This is the purchase via Mobile Application like the paid or the licensed. In this category of transport booking, food ordering, and even grocery deliveries.
- Mobile banking- payments through online mode have been becoming normal these days. While ordering the product, the payment is made super easy through the mobile network. Using UPI and internet banking, customers can order what they want.
- Google Pay or PayPal payments – we can also opt for mobile payment options like these for contactless payments from both android and iOS devices.
- Digital content (Netflix, Spotify, etc) – in this digital world. We all run behind the digital content, where you can pay and watch the television series, your on-go favorite songs, and even articles, new blogs, and even more through the subscription form. Some examples are Netflix, Hotstar, Spotify, Wynk music and the list goes on. Even you can have subscription plans for e-books.
- person-to-person payments- These help in the in-person transfer of money for buying something. From one person to another makes the money transfer safely and securely.
Read: Best ecommerce business ideas for 2023
Scope of m-commerce:-
Irrespective of the age group people are using smartphones. Therefore everything is moved within that portable device starting from the location search to the order tracking. And in India, there are some initiatives taken that help in the scope, that as the UPI, Digital wallets, GST implementation, Skill India, and Digital India.
Added to that the Government of India has also launched the BHIM app for cashless transactions using the UPI. Compared to the usage of the web browser the mobile user’s percentage is higher which can boost the sales rate up to 50% and above.
Read: Top 10 ecommerce website builders for 2023
- High in the customer base. It generally offers a larger customer base and better customer retention than ecommerce due to its richer and more accessible functionality. Additionally, mobile analytics provide insights into customer shopping behavior, patterns, and history. To increase retention, businesses can use this data to target buyers with personalized offers and customized discounts.
- Gaining Confidence:- It allows customers to compare prices, read reviews, and shop when and where they want.
- Human input is minimized:-It automates customer contact and business selling with a variety of mobile contactless payment options such as Apple Pay, PayPal One Touch, and Visa Checkout. Many ecommerce sites also offer a one-click checkout feature, allowing users to add their payment information once and use the one-click option for all subsequent purchases.
- Omnichannel experience:- It creates an omnichannel experience where you can sell your products across multiple channels (ecommerce websites, Amazon, eBay, Instagram). This approach makes it easy for customers to shop anytime, anywhere.
- Product varieties:- Customers can browse a vast stack of products while benefiting from competitive prices.
Read: Ecommerce Sales – 10 Best ways to Increase it
- Taxing problems:- Companies must know and comply with the tax laws and regulations of all countries to which they ship. Some companies will avoid this by only allowing purchases and shipping to their home countries.
- Poor handling:- Smaller screens of mobile phones and tablets require specific navigation features. As a result, intuitive mobile user interfaces are complex and expensive to design. A poorly executed mobile customer experience can frustrate customers and prevent them from making a purchase.
- Payment issues:- Mobile payment options are not available in all geographies and may not support all digital wallets.
- Inability to resist:- Many users are still hesitant to make purchases on mobile devices due to security risks. Even with two-factor authentication, mobile fraud is on the rise, and many merchants have yet to adopt fraud prevention methods for small screens. Attacks like SIM swapping and mobile malware are increasingly common and may discourage users from making payments through their mobile devices.
Read: Top 10 ecommerce hosting in India
By 2023, there comes the biggest trend of m-commerce is market growth. In 2018 $501 billion was calculated and it is expected to grow up to $740 billion by 2023. And with this, the future growth starts with the wide technology benefits.
Leave us comments, and we would like to read and respond to them.
1. What is the future of m-commerce?
Till today, it takes the half of the ecommerce sales. In future, the complete ecommerce sales will be through the mobile with the maximum speed of execution.
2. What does m-commerce do?
1. online payments.
2. online games.
3. buying and selling goods and services.
4. software applications uses.
5. downloading audio or video content.