You’ve probably overheard internet business owners use the term “mobile commerce,” or “m-commerce,” at least a few times in recent years. What distinguishes m-commerce from traditional e-commerce, you may be wondering? Are they interchangeable? Is there any benefit to m-commerce that I might use for my online store? This article will provide all of the answers. We’ll provide you with an industry description, a practical example, some advantages, and current trends so you can start using mobile commerce.
What is Mobile Commerce?
Mobile commerce, or m-commerce, refers to the use of wireless handheld devices like mobile phones and tablets to carry out business activities online, such as the buying and selling of goods, conducting financial transactions, and paying bills.
Understanding Mobile Commerce
A sizable portion of electronic commerce, in which businesses or individuals transact business online, is mobile commerce. Nearly 97% of Americans owned a cell phone by 2023, and 85% of them owned a smartphone. According to the Pew Research Center, this is an increase from 35% in 2011.
M-commerce allows for the purchase of a wide range of goods and services, including banking, investing, and the buying of digital music, books, and airline tickets. Numerous factors, such as improved wireless handheld device computer power, a profusion of m-commerce applications, and the resolution of security challenges, have contributed to the rapid expansion of mobile commerce.
M-Commerce vs. E-Commerce
Internet-based purchasing and selling of products and services is known as electronic commerce (e-commerce). A user must find a location with an Internet connection to perform e-commerce, which can be done on a desktop computer, laptop, smartphone, or tablet.
On the other hand, m-commerce refers particularly to transactions made using a smartphone or other mobile device. Users of m-commerce can do business wherever there is a wireless Internet service provider.
Example of Mobile Commerce
Look at these five mobile commerce examples as you evaluate how your retail brand might enhance its mobile presence in 2023 and beyond:
#1. Emma Bridgewater
Emma Bridgewater, a British home and kitchen company, felt the effects of going mobile. When re-platforming, one of its top focuses was to improve mobile experiences. It reorganized mobile checkout processes and altered the design of mobile product pages.
The number of mobile users increased by 32% at Emma Bridgewater, which helped to boost mobile revenue by 13%. Those adjustments caused a record-breaking sales day of £190,000 ($255,000) just after the migration.
#2. LookFantastic
The beauty shop LookFantastic departs from the norm with its mobile app. “Mobile visitors tend to be higher up the conversion funnel,” says David Gossage, SEO Manager. They may convert at a lower rate, but they read more, according to this.
“Shoppers will investigate a product before purchasing it, read the material, and may visit other sites to do so because they have access to a wealth of information at their fingertips. Offering simple access to premium content from your mobile site or app can help users make purchases more easily and may increase traffic from organic search engines.
#3. MVMT
A Shopify Plus customer and when watch retailer MVMT, opened a Facebook shop in 2014—around the time when mobile usage overtook desktop usage for the first time—it already had a mobile-first designed e-commerce site. At that point, the company noticed a nearly instantaneous 60% surge in mobile usage.
But without a mobile-commerce approach to advertising, MVMT would not have been able to accomplish these outcomes. The business received official case studies on all three platforms as a result of its success on Facebook, Instagram, and Pinterest.
#4. Olipop
A CPG company called Olipop offers sugar-free soda at its DTC shop. Our website is entirely designed for our mobile users,” claims Melanie Bedwell, its e-commerce manager. “Navigating and buying our stuff is simple.
You can browse their mobile storefront and see sizable Shop Now buttons right away. As users scroll down, three product purchase options are displayed, along with other offerings like subscriptions and blog material.
#5. Shop
The store offers speedy checkout choices for customers who purchase on their phones. Customers can utilize the digital wallets already installed on their smartphones, such as Apple Pay and PayPal. Additionally, the native checkout maintains a customer’s invoicing and payment information for one-click ordering for individuals who don’t utilize mobile wallets.
Mobile Commerce Trend
You must stay current with the newest innovations in mobile commerce as an owner of an e-commerce store. You cannot overlook mobile customers if you are selling online using Shopify or another platform.
That is what motivated me to write this post. I’ve studied and analyzed the most recent e-commerce industry trends, and I’ve honed in on the ones that apply to mobile shopping. The aforementioned mobile commerce trends will rule. In addition to outlining these e-commerce developments, I’ll also provide you with some 2023 mobile commerce preparation and adaptation advice.
#1. One-Click Ordering
“1-click” ordering, which was invented (and patented) by Amazon in 1999, revolutionized online shopping. The Amazon website’s one-click ordering feature made it easier for users to make purchases. First-time online purchasers only need to enter their billing, shipping, and payment information once on the website.
When making further purchases, consumers can click a button, and the website will remember the information they have previously input. Transactions are quicker and more seamless as a result, which is good for conversion rates and customer satisfaction.
#2. Voice Search and Voice Shopping
Voice shopping has become more common as a result of the growth and acceptance of smart speakers. Artificial intelligence and voice recognition are used in voice searches and voice shopping to speed up consumer transactions online.
71% of customers polled by PWC said they would prefer to utilize voice assistants to conduct online searches. Even while the majority of survey participants say they prefer shopping in person, online, or through mobile apps to voice shopping, it’s clear that this year’s trend is moving more and more toward voice searches and voice shopping. This year, make sure your voice search-optimize your website to stay on top of the trend.
#3. Mobile Apps for Retail
These days, apps are everywhere. The Covid-19 pandemic has accelerated the development of mobile commerce apps, with Western markets’ Amazon app leading the charge. A little bit more than half of all eCommerce sales in the US were made through mobile commerce apps.
Consumers are increasingly choosing mobile apps over web browsers while buying, according to a current trend. Therefore, it is best to create one before your competitor surpasses you and the market becomes oversaturated with retail mobile apps.
#4. Chatbots
Millions of people use mobile devices to shop every day, so it makes sense to have some support available for customers that need it.
Computer programs called chatbots mimic human conversation. Typically, chatbots aid customers in mobile commerce. Online shopping eliminates in-store interactions between people, yet many customers still want to discuss a product with someone, ask a specific question, or have other concerns that should be clarified in the website or product description.
Customers are helped by chatbots by receiving helpful basic information from them and being sent to a real person if their question is too complex for the bot to handle.
#5. Mobile Payments
The majority of individuals still carry cash in their wallets and pay for purchases with cash or credit cards, but the trend will unquestionably be an increase in mobile wallet payments. It’s quick, easy, and secure.
Even if the majority of your customers continue to pay using credit cards, it’s a smart idea to accept mobile payments in addition to traditional forms of payment. Payments made through mobile wallets increased tenfold in just five years, from $25 billion in 2016 to $275 billion in 2021.
The time is now to start using mobile payments because major companies like Apple Pay and Google Pay have developed connectors for simple and contactless purchases.
#6. VR/AR
Our daily lives are being gradually but undoubtedly impacted by virtual and augmented reality. VR and augmented reality (AR) are no longer just used in the entertainment sector; they are being used in retail as well.
Ikea, Amazon, and Sephora are a few of the well-known companies that have integrated VR/AR into their mobile applications. Allowing customers to virtually try on products before making a purchase is one of the most well-liked VR/AR solutions. This lowers the likelihood of returns and consumer unhappiness. The customer can point their phone camera to a location in their house or office on the Ikea app. The software will then measure the area automatically and offer furniture suggestions.
#7. Social Commerce
Social media platforms are used to buy and sell goods and services, which is referred to as social commerce.
Let’s say you are perusing your Instagram feed when you notice a new item that a website you follow is releasing. Social commerce is possible if you can purchase goods directly from Instagram. No need to access a mobile app or browse an external website to finish a transaction.
Because US users spent an average of two hours and three minutes each day on social media last year, you should surely take this trend into account. You may profit from the 123 minutes of their time and attention there. The US falls even short of the world average, which works out to 147 daily minutes.
#8. Omnichannel Retail Strategy
Simply said, omnichannel retail refers to the practice of selling goods and services through a variety of channels. A physical store, a social media presence, a website, a mobile app, or a mix of these are all acceptable forms of business. Consumers of today do extensive pre-purchase research across a variety of sites. People might be researching their options on their smartphones even as they are making in-store purchases.
T Mobile Commerce GA
The term “T-Mobile Commerce GA” most likely refers to T-Mobile’s use of Google Analytics (GA) on their online store. With the help of Google Analytics, website owners can monitor and examine visitor activity on their sites, including metrics like page views, sessions, bounce rates, and conversion rates.
Google Analytics may offer e-commerce websites useful information on customer buying habits, such as the most popular products, pages with the highest bounce rates, and pages with the best conversion rates. E-commerce companies can increase sales and revenue by monitoring these indicators and adjusting the user experience and website design.
T-Mobile’s integration of Google Analytics with its e-commerce platform to track and evaluate the effectiveness of its online sales and marketing activities is also referred to as T-Mobile Commerce GA. Through this integration, T-Mobile may gain knowledge about the success of its marketing initiatives and be assisted in making data-driven decisions that will enhance its e-commerce operations.
Benefits of Mobile Commerce
Many factors contribute to the popularity of mobile commerce, including:
#1. Convenience and client satisfaction
A mobile device is more practical for last-minute purchasing and option exploration because we virtually always have one with us. Since mobile shopping is quick, convenient, and participatory, it typically offers people a better shopping experience.
#2. More rapid transactions
Providing an excellent customer experience also includes providing quick checkout and transaction times. This is especially true for mobile apps, which load webpages more quickly for mobile devices. Mobile commerce can give customers what they need so they can complete the purchasing transaction fast and easily.
#3. Location monitoring
One of the most important benefits of mobile commerce is the ability to “find a store near me”. Businesses can streamline the purchasing process by directing clients to the closest branch. Apps can use GPS inside the store to direct customers to the items they’re looking for.
#4. Analytics
Mobile commerce provides businesses with crucial data that can aid them in their marketing efforts, as opposed to in-store sales, where customers enter, make a purchase, and go. You have a list of customers that includes information about each one, including their name, what they purchased, how frequently they visit and make purchases, preferred payment method, shipping address, and other pertinent details.
#5. Better customer communication
Mobile commerce encourages face-to-face interactions with clients. You can interact with your target market on social media, send them targeted adverts about sales and new product releases, and otherwise build a strong relationship with them.
Drawbacks of Mobile Commerce
#1. Extremely competitive market
Many businesses have recently changed their attention to investing in and finding success in mobile commerce. If you begin now, you will encounter thousands of current rivals along the way. To gain a competitive edge as a store owner, you must identify a specifically focused market or niche market.
#2. Ad fraud danger
The greatest bias against mobile commerce is usually ad fraud. The majority of organizations are ill-equipped to manage this risk. More than 60% of marketers admit that they have no plan in place to thwart fraudulent mobile marketing as reported by HuffPost.
#3. Client Privacy
M-commerce companies have a stronger need to protect consumer information as a result of the increased access that customers give you to their data. You must make sure that your business and any partners follow strict user protection guidelines. Then, be open and honest with your customers about the sharing, gathering, and storing of their data.
#4. Not personalized connection
Mobile commerce and online shopping are still regarded as low personality. As a result, companies engaged in commerce continue to make greater efforts to interact with their clients. One tip for fostering a stronger sense of belonging and appreciation is to send customers a personalized message or incentive based on their date of birth and preferences.
What Is the Difference Between E-Business and Mobile Commerce?
E-business and mobile commerce are related but distinct concepts. E-business refers to any business conducted over the Internet, while mobile commerce specifically refers to the buying and selling of goods and services using mobile devices such as smartphones and tablets.
Here are some key differences between e-business and mobile commerce:
- Scope
- Platform
- User experience
- Location-based services:
Is Mobile Commerce the Use of Mobile Wireless?
No. Although mobile wireless technology is used in mobile commerce (m-commerce), there is much more to it than just the technology. Mobile commerce is the term used to describe the purchasing and selling of products and services through mobile devices like smartphones and tablets. Several technologies and business procedures are used to make this possible.
What Are the Components of Mobile Commerce?
Mobile commerce (m-commerce) is a sophisticated system with many interconnected components to facilitate the purchase and selling of goods and services via mobile devices. Some of the essential elements of mobile commerce are as follows:
- Mobile devices
- Mobile apps
- Mobile websites
- Mobile payment systems
- Mobile Marketing
- Mobile analytics
Conclusion
Both businesses and consumers can gain greatly from m-commerce. Rare is the person who doesn’t own a mobile device, and with the introduction of mobile commerce, businesses may more readily access them. Customers can easily complete banking operations and access coupons and discounts straight on their devices. Both parties benefit, and as new technologies are developed, the advantages should only increase.
Related Articles
- What Does Google Own? 17+ Companies You Didn’t Know
- IDENTITY PROVIDER: All You Need to Know About IDP
- How To Publish A Book On Amazon: A Guide For Nigerians
- 14+ Most Profitable Business Ideas in Nigeria 2023
- 15+ Small Business Startup Ideas in Nigeria in 2023
- Business Plan Model: A Comprehensive Guide to Building a Successful Business
References
