Mobile commerce has taken the world by storm. What has particularly led to the rise of m-commerce is the ubiquity of the internet, social media networks, search engines, and changing lifestyle patterns. Phones provide convenience and speed over tablets and laptops – turning them into the most preferred way to shop, bank, and browse.
What Is M-Commerce and How Is It Different?
E-Commerce has been around for decades, but it may not be the next true frontier particularly as m-commerce continues to take shape and to become more popular among the millennials. But what is m-commerce and how does it compare to e-commerce? What particularly makes m-commerce quite discrete in the current changing wave of shopping?
Put it simply: m-commerce entails shopping through a mobile phone (or smartphone), while e-commerce entails shopping online through your tablet or the computer. What makes m-commerce different is that it hosts a range of technological advances that make it faster, convenient, flexible and affordable.
Indeed, m-commerce is poised to burst into fame and straight into the limelight courtesy of its exciting features and advanced developments that make shopping quite a rewarding experience. What precisely defines and distinguishes m-commerce is the speed, superior customer experience of viewing and selecting products, as well as the convenience of shopping wherever and whenever you want.
Types of M-Commerce
Mobile commerce is an umbrella term that encompasses a wide range of small financial-based activities done online. The first type of m-commerce is mobile money transfers that entail broadly transferring or wiring money from one bank to another through mobile platforms. Mobile commerce also entails electronic tickets and boarding passes paid through the mobile phone.
Mobile commerce has revamped particularly due to the growing need to pay transportation fees and finance other ticketing activities solely through the mobile phone. Digital content purchases and deliveries as well as mobile banking are other unique types of m-commerce. Mobile commerce has made it possible for artists and creatives to sell and buy copyrights online as well as support other music distribution activities.
Other types of m-commerce involve coupons, mobile marketing, and in-app payments. For instance, cab-hailing services like In-Driver, Uber, and Bolt have leveraged mobile commerce through in-app payments that enable clients to disburse payments via smartphone devices. Technologists predict that mobile commerce has unmatched potential to become a major shopping channel, and transform consumer shopping habits.
Must-Know M-Commerce Statistics
Insights drawn from trending statistics show that mobile commerce sales will skyrocket to $3.56 trillion by the end of 2021. More than 1 billion mobile phone users use their phones for banking purposes. Mobile devices account for 67.2% of all e-commerce and approximately 68% of the world population owns a mobile device in 2021.
Additional statistics show that 79% of smartphone users have made an online purchase using their phones. In 2020, mobile retail revenues accounted for 339.09 billion. 72.9% of all e-commerce will be mobile commerce by the end of 2021. These statistics show just how a reckoning force mobile commerce will be, particularly as the world ushers in a new frontier of mobile shopping, banking, and browsing.
The Need For A Mobile Shopping App
The sky’s the limit for mobile commerce. Consumers are shopping online, today, than ever before – and this statement holds true across all sectors and industries worldwide. It is no secret that mobile consumption has taken over our lives more than ever before. According to a recent study, 96% of the American population owns a mobile device, while 81% of the population owns a smartphone. Looking around, almost everyone has these devices glued to their hands 24/7.
As a business owner, you need to recognize this trend and adapt. How precisely can you use this new and exciting trend to communicate to consumers, advertise, deliver products, process sales, and receive consumer feedback? Well, here are some top reasons you need a mobile shopping app.
- Mobile commerce is the new trend – Sales from mobile commerce have taken over the e-commerce industry.
- Consumers prefer mobile applications – Mobile applications are ubiquitous, they offer speed and convenience thus a special preference for consumers.
- Gaining a competitive advantage – The e-commerce sector is highly dynamic and ever-changing, making it privy to competitive forces from existing players. To differentiate yourself and make a mark, transitioning fully to mobile commerce will help edge out the competition.
- Higher conversion – The e-commerce sector thrives primarily due to the ubiquity of markets, social media networks, and mobile devices. Transitioning to an m-commerce model will lead to higher conversion rates.
- Improving marketing communications – Mobile commerce provides a unique capability because mobile devices rely on AI bots to predict consumer searches and make accurate predictions of future search trends. This automatically leads to improved marketing communications through targeted advertising.
How an M-Commerce App Complements Brick-and-Mortar
The e-commerce boom has transformed the way people bank, shop, and browse. In many cases, this boom has had a deleterious effect on in-store sales. 2018 saw a 3.4% increase in e-commerce sales and a 15% increase in e-commerce. These statistics are a clear indication of the disparity in growth between e-commerce and in-store sales.
The m-commerce complements the brick-and-mortar model because, in in-store experiences, customers can view, buy the product and carry it home. However, what mobile commerce does is that it allows consumers to view the product, analyze the product features (for products that need analysis), and finally make an in-store purchase before the product is delivered. This means that mobile commerce bridges multiple gaps in customer viewing and purchases experiences, thus complementing the brick-and-mortar enterprises.
Android or iOS Development: Use One or Both?
Google and Apple both have fantastic app stores. However, Google is far much superior at app organization and letting consumers know about important information on the home screen. The Android app also hides less useful apps in the app drawer. In addition, Google app widgets are much more useful and functional than Apple’s.
However, due to the growing number of iPhone users, and the growing consumer hype around Apple devices, your mobile app development efforts must address both sides of the divide. This means that using both Android and iOS will ensure that consumers, regardless of their smartphone devices, can enjoy a personalized shopping experience.
Incorporating Secure Financial Transactions
The state of security for mobile commerce is an issue of strategic importance for mobile app developers. Just recently, TalkTalk and Vodafone suffered high-profile breaches making millions of clients privy to fraud and phishing attacks. The leakage of user credentials and personal information not only affects individual users, it impairs retailers who are affected by chargebacks on many fraudulent transactions.
There are three categories of services and applications that help businesses secure their mobile commerce transactions through user authentication. These include mobile environment security, mobile app security, and mobile-friendly user applications. Smartphone devices feature discrete security services and applications that seal them from potential, unauthorized access or infiltration. Incorporating secure financial transactions into the overall m-commerce architecture is a win for both retailers and consumers using mobile platforms.
E-Commerce, ERP And The Changing Face Of M-Commerce
Mobile commerce has marked a paradigm shift for e-commerce. Previously, e-commerce had dominated online sales and purchase activities, but with changing trends in mobile ownership, the ubiquity of smartphone devices, social networking sites, and changing lifestyle patterns, it is evident that e-commerce has been phased out. The enterprise resource planning will help enterprises to manage their mobile applications particularly as enterprises eye on m-commerce as the next new frontier. In response to this dramatic shift in m-commerce uptake, enterprises are likely to maintain m-commerce applications with changing trends.
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