What is Mobile Commerce?
Mobile commerce or M-commerce is the process of conducting online transactions, paying bills, sale & purchase of products, and internet banking by using wireless devices such as mobile phones, tablets, etc. M-commerce has been increasing for the past few years, and security issues have also been resolved along with it. Different companies like Google, Apple, and others have launched different apps to promote m-commerce.
M-Commerce Statistics and Trends
According to a study by Zenith, there has been a dramatic increase in the spending of smartphones for the past few years which has lowered the cost of ownership of mobile phones. There are round about 77% of internet users across the world by smartphones.
In 2019, over 2 billion people have made purchases from their smart devices such as mobile phones. One dollar in every four dollars comes from m-commerce and the annual spending has crossed the limit of 35 billion dollars.
Difference between M-Commerce Vs E-Commerce
Despite the fact, the main purpose of both e-commerce and e-commerce is the same and which is to perform the transaction via the internet or online. But there are some major differences between both of these platforms which are as follows;
E-commerce means electronic commerce where people complete their transactions from their desktop computers and laptops. M-commerce, on the other hand, is the mobile commerce where users shop and close the deal from their mobile devices. The main advantage of e-commerce is that you don’t have to be stuck at one place to complete the transaction; you can shop, pay bills, transfer money via internet banking and all sort of transactions from anywhere.
The reachability of m-commerce is much greater than e-commerce because it’s wireless. Wherever there’s a network tower, there’ll be internet. In the presence of the internet, retailers, users, and others can do their transaction from everywhere. This is the reason that m-commerce has a much wider audience.
While shopping online and to complete the transaction, one has to disclose one’s credit card details to the relevant online platform. That’s where people get cautious and avoid providing their confidential detail. M-commerce is a bit secure in this way that it provides an option of two-factor authentication to complete the transaction. First is through fingerprint and the other is retina scan.
Tracking your location is the other important feature of m-commerce with the help of Wifi and GPS technology. It gives you the option of finding your current location where you can find local businesses around your location to be in contact with.
M-commerce has the internet transaction so convenience that you don’t need a computer or a laptop to shop and complete the transaction process. If you have a smartphone and a stable internet connection, then you can complete the transaction just by few clicks and taps on the screen of your device.
Application of M-Commerce
M-commerce has become so diversified that it has its feet in almost every field like telecommunication, information technology, finance and accounting, health care, sales and retails services. Some of the important applications of different m-commerce niche are given below;
Shopping has become so simple and easy with m-commerce nowadays. Different brands have their separate apps where people can check the catalog of their favorite brand. If you like any of the products, you just have to place the order and enter your contact details. Product will be shipped off at your address.
Different banks have launched their mobile apps where customers and users can log in to their account. However, they can access the details of their accounts from their mobile devices. All the information relevant to their account such as current balance, account history, bank statement, and other details; which you can find it by using the app of your bank. Whenever there’s any transaction in your account, the bank will send you a notification that a certain amount of money has either been deposited or withdrawn from your account.
Banking and the micro-financing apps of different banks and networks gives you the option of online transaction. Where user has the option of transferring money from one account to another; and the service providers charge a certain amount for its service. You don’t have to go to the bank, fill the forms and wait for the day to complete the transaction.
Mobile Ticketing and Booking
Whether it’s booking of air flights or buying tickets for buses and trains, you don’t have to visit their office. Just find a relevant app of air flights, buy the tickets, transfer the payment using your mobile apps and get your online receipt.
Different businesses use mobile marketing by compiling a list of their customer’s contact. Once the list is complete, then they send a customized message to all of their customers about the new offers or the package they are offering.
Coupons and Loyalty Cards
To keep the attention of people intact and win their loyalty; companies and businesses offer some discount coupons to their customers on certain days. For instance, buy one and get one free from our app. Just download our app and avail this amazing opportunity. Phrases like these are used to motivate their customers.
Advantages of Mobile Commerce
Mobile commerce is a field with a lot of opportunities; some of the advantages of m-commerce are given below;
In the conventional and traditional type of businesses, shoppers just buy things and know very little about the details of the product. M-commerce, on the other hand, informs its buyers better about the product or service whatever they are looking for.
Approximately more than two-thirds of the world’s population has the ownership of smartphones; which gives brands and businesses to reach a global audience by using m-commerce.
The right timing to launch a product has become very important in m-commerce because the market is so big and commerce. If you launch something at the right time what people are looking for, then you have an opportunity to have maximum market share.
As we know, e-commerce provides access to the global audience. Therefore, every business tries to differentiate itself from the other to stand out from the crowd, the purpose is to avail as much opportunities as possible. In this way, m-commerce is expanding rapidly.
Competition among apps in e-commerce has created an environment of scalability, where companies and business scale themselves by getting better from one another.
Disadvantages of Mobile Commerce
Increase in fraud risk
According to a study, approximately 60% of the marketers accepted the fact that they weren’t ready for the risk of fraud over some e-commerce platforms.
It has become very difficult for the new business owner to launch its business and be successful, because once he does, then he has to face a global competition.
Less Personal Connection
When a buyer goes shopping, then he connects with the store, people and the seller. M-commerce lacks this option of personal touch where buyer and seller do not connect.
In the race competition, companies are acquiring customer data like their details. That’s the privacy of individuals is at great stake.
Physical Location Issue
Most of the m-commerce stores nowadays focus on their online catalog and presence, much less on their real physical where people can go and feel the real-life shopping experience.
Future of M-Commerce
As we discussed earlier, users of smartphones have been increasing for the past few years at an exponential rate; which has had a great impact on the future of m-commerce. Here are some points which tell us why the future of m-commerce is bright.
- The number of mobile users has been increasing, which means the market of m-commerce is expanding with each passing day. Mobile data internet is in the access of every user and people are getting used to using different apps.
- Browsing over the smart is now widely being used than the traditional desktop browsing; because flexibility and mobility are such options which have increased the usage of smartphones.
- Online shopping trends are growing. Nowadays, people prefer buying over m-commerce stores because it’s easier and convenient. Such trends have increased the growth of e-commerce businesses and opened the doors for newcomers to take advantage of this opportunity.
- Online shopping is changing our behavior of attitude of verifying everything before buying it. The most common example, when we see or hear something new, then we immediately search it in the Google app of our browser. Why, because we need confirmation to verify such information.
One thing has proven through our discussion that mobile commerce is the future of commerce industry. If you’re running a successful business, then you should think about going online over m-commerce store. Make it simpler, convenient and easily approachable. So that people can find it, visit it.