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In this blog, we will explain the concept of mobile commerce in detail. We will discuss what mCommerce means, how it differs from eCommerce, and much more. Let's dive deep into it.
What is Mobile Commerce?
Mobile commerce (mCommerce) is a subset of eCommerce. Online practice that involves buying and selling products or services on mobile devices and tablet computers. The majority of online transactions are now conducted via smartphones.
Mobile commerce apps are allowing major brands such as Domino's Pizza, Amazon, and Starbucks to dominate the market. In recent years, mCommerce apps have taken a large market share and reached out to many more customers.
According to research, the mobile payments market will reach $11.83 trillion by 2028. Apple and Google are already introducing their mCommerce products to help this market grow. The two retail business models, mCommerce and eCommerce, are very confusing to retailers. Let's dispel any misgivings you might have before getting started with mCommerce.
Key Features of mCommerce Solutions
Multi-channel retail strategies can be strengthened with mCommerce, by integrating tools, integrations, and features that meet the changing needs of consumers. Here are some of the features that you should consider including in your retail app.
Push Notifications
Push notifications are a great way to implement marketing strategies. These notifications allow your team to communicate the right message, improve user engagement and forward it. This feature is important for communicating product launches, sales, and potential discounts/offers.
Location Tracking
It allows you to track your users' location and send them personalized messages and notifications. Based on the user's location, it can recommend their favorite products at the nearest outlet. Additionally, geofencing technology can be utilized to send important emails, notifications, and messages.
Create a Profile
mCommerce apps allow users to create profiles easily and display their preferred products or services. These apps save all information, such as address, payment method, and name. So, when your users are buying, they only need to click a few times to fill out the necessary information and have the order ready to be delivered.
Pay in Multiple Options
Customer base should not abandon the purchasing process or their shopping carts, and they shouldn't think less of your platform because you don't have the best payment method to choose their favorite products. Incorporating multiple payment methods is, therefore, of paramount importance. An integrated mCommerce system can integrate various payment methods, such as digital wallets and debit/credit cards.
Advanced Technology Integration
mCommerce apps can help remove barriers to mobile shopping online by providing a similar experience to that of a store. Immersive technologies such as IoT (Internet of Things), AR, VR (Virtual Reality), Metaverse, etc., can help you bring the best images and videos directly to the screens of your users. Your users will be able to get a better understanding of your product range and quality.
Product Returns Management
Products can be returned by customers for a number of reasons. This process can be streamlined by using a mobile commerce application, which uses previously stored information to facilitate quick returns. The user will be more likely to make another purchase thanks to the tailored experience and full procedure.
What is E-commerce?
E-commerce is also known as electronic commerce, online commerce, and internet commerce. This term refers to any activity that involves purchasing or selling products and services online. It is the same as brick-and-mortar stores.
However, all transactions and interactions are done through the Internet. You can buy a wide range of products, from clothing or sports equipment to software and other services. Laptops are no longer the only devices used for e-commerce. The mobile device is the leader today. This year, mobile commerce will cover over half of all online platform sales.
E-commerce Models
Business-to-Consumer: This model is the most common. B2C e-commerce is a form of e-commerce where sales are made between the business and the consumer.
Business-to-Business: This is a model in which a company sells products or services to a different business.
Consumer-to-Business: A person sells products or services to a business. We can include freelancers such as photographers, writers, etc. but also influencers on social media who market and promote branded products.
Consumer-to-Consumer: This model is used when one person sells a product or a service to another person via the Internet. You can do this via digital platforms such as eBay or Etsy.
Direct to Consumer: The latest e-commerce method, in which a brand directly sells to the end consumer without having to go through a distributor, wholesaler, or retailer. Subscriptions and selling through social platforms such as Facebook or Instagram are popular examples for this business process.
What is the Difference Between mCommerce and eCommerce?
mCommerce and eCommerce are based on the same basic principles. However, mCommerce is different from eCommerce. Here are some key differences between these two terms:
Mobility
eCommerce allows you to use laptops or computers for transactions. This can be inconvenient in certain situations, such as when traveling. With mCommerce, you can still make purchases while on the road, at a meeting, or at a party. As long as you are connected to the Internet, you can shop anywhere and anytime. You can shop without a credit card or debit card using mobile money apps such as Apple Pay, Google Pay, and Amazon Pay.
Security
Security is the main factor you should consider when making a purchase. A store owner must rely solely on web-enabled safety. Credit cards are also the most common payment method for eCommerce portals. People are still worried about the safety of leaving their card details online.
These issues are not a concern with mCommerce apps. These apps rely heavily on web security, built-in mobile features, two-step authentication, and biometric security facilities such as fingerprint, eye scanners, and face identification.
Better Reaching Techniques
Mobile commerce platforms have a wider reach than eCommerce. As smartphones generate most of the traffic on the Internet, store owners can reach a larger audience and increase sales.
Easy to Use
With a few taps of the smartphone, retailers can improve the customer's experience, customer relationships and complete the transaction with customer retention. This is not possible in an eCommerce store. Desktop websites are more difficult to navigate than mobile devices.
Location Tracking Capability
Due to the inability to transport computers, eCommerce store owners cannot track their location. MCommerce apps can, on the other hand, use GPS technology to pinpoint real-time locations of users. It can also provide personalized recommendations and location-specific information to target specific customer needs.
The choice of shopping device is what makes a significant difference between eCommerce vs. mCommerce. Moreover, according to research, mCommerce will dominate the market. Check out the numbers.
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Why is mCommerce Considered the Future of eCommerce?
Mobile commerce is booming and has an already large user base. mCommerce does not show any signs of slowing down. As a business, you need to be focused on mobile app development and develop a mobile commerce strategy in order to stay up to date. To give you a better understanding, here are a few reasons why mCommerce is the future of eCommerce.
Growing Mobile Users
By 2025, there will be 18.22 billion mobile devices in use worldwide. Retail business owners must invest in mobile technology and use mCommerce to the fullest.
Market Expansion of mCommerce
mCommerce has been growing at a rapid rate since the pandemic outbreak. By the end of this year, mCommerce is expected to grow massively and will reach $728.28 Billion by 2025.
Preference for eCommerce
Most consumers recognize the growth of mobile commerce due to its ease of use and options for payment. For example, 198 million Americans used their mobile phones to shop online in the past three years. This number will likely increase.
Increased Click Through Rates (CTR)
Advertising on mobile has a higher CTR compared to desktop ads. People spend more time using their smartphones than laptops and desktops. Mobile commerce allows businesses to reach more customers via native mobile ads.
Better Conversions
Google says that 9 out of every ten mobile searches result in an action, and about half of these actions lead to a purchase. Google says that mCommerce will continue to grow and improve the shopping experience.
Increased Engagement
Mobile apps have a positive impact on the eCommerce industry by increasing user engagement. Sending push notifications through mobile apps is a great tool for interacting with users over time.
Improved Exposure to Social Media Platforms
Mobile apps help to increase the exposure of social media platforms and allow companies to better cater to a larger audience. These platforms also give them the opportunity to increase their mobile app downloads.
Increased User Retention
Mobile commerce can help you build a community of loyal customers. You can offer your customers loyalty rewards, cash discounts, and other features.
Rise of Digital Wallets
Digital wallets make shopping easier for customers because they offer flexible payment options. Digital wallets are growing in popularity due to QR codes, super-apps, and open banking. Retailers can use a secure payment system to improve customer satisfaction.
Details Insights
Customer insight is the key to mCommerce. You can retrieve data on your customers, such as their age, gender, location, etc., to analyze their behavior and interests.
Pragmatic Scalability
MCommerce platforms are scalable and can help your business grow rapidly. A powerful app that is engaging and can solve engagement problems and keep your business on course. Let's look at the features that make mCommerce the future of eCommerce.
Retail Ecosystem: mCommerce's Advantages and Drawbacks
mCommerce is a growing industry. Like everything else, mCommerce has both advantages and disadvantages. Let's look at each one.
Mobile Commerce: Its Benefits
Customers Base
In order to build a client base for your company, it is important to gain insight into the target audience. mCommerce gives you that insight so you can optimize your marketing campaigns.
Help for Small Businesses
mCommerce allows for a greater reach of the market by reducing the distance between buyer and seller. Small and mid-sized businesses located far from major cities are able to get the reputation they need.
Optimizes Product/Services
mCommerce provides a comprehensive insight into the consumer's behavior, including their likes and dislikes. This information can be used to optimize and analyze your products and services in order to generate more sales.
Manages Inventory
By preventing confusion and issues about the inventory, an mCommerce platform makes it easier to manage products. You can instead keep track of products that are only sold through mobile apps, segregating different types of inventory.
Processes Multiple Orders
Apps for mCommerce offer faster loading speeds and a more technological approach. This allows your business to take several orders per day and process them in accordance with the customer's needs.
Remarketing/Retargeting
Apps for mCommerce can help you plan effective remarketing campaigns. You can send a cookie directly to the device of the user, allow the user to see ads based on their shopping habits, and then create opportunities for them to complete the sale.
Mobile Commerce: Its Drawbacks
Technologist Familiarity
Mobile commerce is a technology that many users are unfamiliar with. It can present a variety of challenges for many. Some of these challenges are as simple as updating the mobile application through which they shop.
Competitive Marketplace
mCommerce is a global platform that creates intense competition when it comes to selling products and services. There is a chance that your business will face many competitors, which could impact your sales funnel.
Security Issues
Mobile commerce can be a source of security concerns and privacy issues. Data leakage, breach of personal information, and other mishaps can occur in mobile apps.
Rural Unavailability
In some rural areas, there are still no mobile phones or strong internet connections. It is difficult to reach rural audiences and engage them with mCommerce apps. As the majority of traffic comes from mobiles, you need to know both the advantages and disadvantages associated with mCommerce before starting your online business. These perspectives will help you achieve a good ROI.
Read More: Why Do You Need a Mobile eCommerce App for Your Business?
Future mCommerce Trends You Can't Ignore, Especially in 2023
You need to rethink your opinion if you believe that Mobile Commerce is a bubble that will be replaced in the next few years by something else. In the next few years, however, many mid-segment businesses will enter the mainstream. Here are some future trends for mobile commerce.
Personalization
In the future, the mCommerce market will be dominated by personalized services. People prefer this. They want their apps to suggest products and services based on their location and behavior.
CryptoCurrency
Bitcoins and cryptocurrency are becoming more popular as a means of making payments that are faster and safer. The concept of digital money will be a trend in mCommerce. This payment method will be used by both retailers and shoppers for their mCommerce platforms.
Enabling Voice Search
Voice search is more popular than text search. By the year 2023, about 65% of mobile app users will prefer voice search to any other option for browsing their mobile apps.
Augmented Reality/Virtual Reality
The future trend will be to enable AR/VR functionality. It enhances the user experience. These technologies would be used by more companies to increase sales, and users would depend on them to make purchases.
Proximity Marketing
Mobile commerce will also be influenced by proximity marketing, which uses mobile networks or geofencing technologies. Retail stores can add this feature to their push notifications, which will offer discounts and special offers for customers who are near them.
Automated Customer Support
The majority of customer service interactions will be automated. Chatbots will be the most innovative tool to boost customer satisfaction and help businesses provide 24/7 support.
E-commerce Advantages for a Customer
The Internet allows customers to find all they need in one place without having to leave their couch. Online shopping has many advantages. Why spend time browsing through store shelves when you can find the products you want with just a few clicks?
Select from a Wide Range of Goods
E-commerce allows consumers to select a product or service from any supplier anywhere in the globe. There is a wider selection than you would find in brick-and-mortar stores. The freedom to browse through digital catalogs in peace and without stress is invaluable.
With e-commerce, you can get a wide variety of products as there are no limitations on space. Traditional stores have limitations that limit the number of products they can offer. E-commerce shops may be limited in other areas. While you may be able to choose from more products online, this does not mean that they are in stock. You will have to wait a few more days if it's not in stock.
Enjoy Simplicity and Comfort
Without leaving their home or place of business, customers can buy any item from any e-commerce location worldwide. May not be able to go shopping due to the weather, health, economic conditions, or other reasons. One example of a Covid19 Pandemic was when brick-and-mortar stores were closed for several months.
It is easy to buy goods and services online without imposing physical restrictions. It only takes a few mouse clicks to get the product. No cash is required. Fill in your credit or debit card information, and you can make an instant payment.
Save Money
The products sold on the Internet are usually cheaper than the ones in shops. You can therefore save money. The customer pays for the costs incurred by a product or service provider in collaboration with an intermediary. The customer may spend less when there is no middleman.
Save Time
E-commerce is a great way to save time. You can even order groceries online. You can shop online at any time since e-shops operate 24 hours a day, 365 days a year. You can order at any time, even in the middle of the night. The time required to select, purchase, and pay online is less than 15 minutes. Depending on the service, products are usually delivered in a week or less. The delivery person will bring heavier goods to your door if you order them.
Get Detailed Information
The Internet is the primary tool used to conduct electronic commerce. Customers can search for information about products, compare benefits and prices and decide whether the product is worth the money.
It is literally at your fingertips. You can find reviews by other users, price comparison tools, product descriptions, videos of usage, etc. Warranty Information contains product descriptions, as well as other details. Before purchasing a product, all customers can be aware of its conditions. The chances of a dispute arising from guarantees or any other matter being resolved are reduced. With e-commerce, you can access the full product information online, whereas goods physically located in a store may not offer this option.
Benefits of E-commerce for a Business
They are numerous. E-commerce has many advantages, including less investment and the possibility of selling worldwide.
Reduce Your Costs
E-commerce is a great way to save money for businesses. You may require thousands of dollars to open a brick-and-mortar store. Rent, space, maintenance, inventory, and other services are all included in the cost. Leaving out retail signs, goods, sales tools, store layout, etc. Often, costs are so high that it does not pay back the money invested. If you do not make enough money, there is no return on investment.
The above items are not required for e-commerce shops. It requires a significantly lower investment. This makes online sales an excellent opportunity for small-scale sellers and individuals. E-commerce can save money by reducing the need for employees. If you want to sell on your own or if you require help, all of your employees can be fully remote. It is easier to find talent, as they can be found anywhere.
Use Affordable Marketing
Businesses can save money and time by using e-commerce. There is no need to print catalogs. Online shopping allows you to show off your products in a creative, affordable, and fast way. You can do this via email marketing or website videos, photos, infographics, Google Adwords, social media, or Google Adwords.
E-commerce makes branding more affordable. You can create your own logo online or hire a graphic designer. It's cheaper to do this than make a physical logo. Consider using a QR Code in your logo. Quick Response code is able to store any type of data, such as a link back to your website. Your customers can be directed to any destination you want by simply scanning the QR code on their mobile devices.
Collect Customer Data Insights
Needs the data of customers to create an exceptional customer experience. This data reveals their preferences, dislikes, and needs, allowing them to create the perfect products, services, or campaigns.
The online world is a goldmine for data insights you wouldn't get at brick-and-mortar stores. Customers provide information such as their names, phone numbers, and email addresses when they purchase promotional materials or subscribe to them. The accumulated data can be used to help retarget ads to attract leads that haven't yet purchased or email potential customers who left your store without purchasing and remind them that they are out of "shopping cards."
Reach New Customers
Around 87% begin their online shopping journey, even if they do not always make a purchase. They browse, review prices, compare different services, etc. All of these are your possible customers.
Does not have geographical boundaries, so e-commerce shops can reach a much wider audience. With a simple click on your website, you can sell to anyone anywhere in the world. It is important to choose the right hosting service and use penetration testing to make sure your website remains secure. By hosting it, you can be sure that your clients will receive trustworthy and secure information. Businesses can also use it to reach out to a specific audience. You can reach a new audience on social media. Instagram marketing is one of the best methods to do this.
Make it Easy to Scale up
An online store never shuts down. Profits can continue to grow. This allows you to reach out to those who are too busy to shop during normal store opening times. It's easy to sell online continuously. Sales automation ensures that even if your customer service agents are sleeping, your store is still working 24 hours a day and 365 days a year. Automation software will send an email confirmation to the customer every time they make a purchase.
The Disadvantages of E-Commerce
Despite the fact that e-commerce may seem to be the best way to buy what you want, it also has drawbacks that could discourage a buyer.
- An Impersonal Approach: The customer is not able to communicate face-to-face with the seller, which can cause distrust or doubt. Customers are more cautious about buying online and prefer a personal touch. They can then talk to the seller and see the products or even touch or try them on.
- Additional Costs: Another drawback of online purchasing is that shipping and packaging charges are frequently the responsibility of the consumer.
- A Longer Waiting Time: As we've already discussed, waiting is a part of internet purchasing. Online stores do not allow customers to "walk in" and immediately take their product, like brick-and-mortar shops. The waiting time may take several weeks if the item is out of stock, or it can be days.
- Uncertainty: Consumers who fall for unreliable sellers may receive a product that does not match the order they made or never get it at all. Customers may be worried about the safety of e-commerce.
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Conclusion
Mcommerce is becoming more and more valuable and relevant as more individuals use ecommerce platforms through their mobile devices. Because of its distinctive features and the amazing benefits it offers, such as mobility, accessibility, and connectivity, mobile commerce is a fast expanding industry. The integration of mCommerce apps into your existing business will also increase profits and ensure sustainability.
