Although only appearing in about ten years, m-commerce has become a vital customer purchase channel. Most people who own smart mobile devices have accessed online stores at least once.
As a result, business owners have been eyeing m-commerce as the next potential income resource.
So what is it, and is it that potential? Let’s dig into this!
M-Commerce – General Information
Definition
M-commerce is a business model that allows companies and individuals to sell goods and services to consumers via handheld wireless devices, such as smartphones and tablets.
Mobile commerce has grown significantly and become an inevitable eCommerce trend with advantages such as mobility, reachability, integrated utilities, etc.
M-commerce examples
M-Commerce is often categorized by function, the most popular being mobile shopping, mobile banking, and mobile payments.
Mobile shopping is the best example of m-commerce as it allows customers to buy products from portable devices via apps like Amazon or Shopee.
Second, banks or financial institutions provide mobile banking to let customers perform financial transactions remotely via applications on mobile platforms. HSBC is one of the most famous examples.
Finally, mobile payment is a form of allowing users to buy products directly via mobile devices. An example of this form is Apple Pay, enabling users to purchase applications and services from their Appstore.
M-Commerce Vs. E-commerce: What’s The Difference?
Although the goal of both these methods is to buy and sell goods through the internet, they still have specific differences:
E-commerce
- Device: Desktop, laptop
- Operating System: Windows, Unix, Linux
- Platform: Web stores
- Location tracking: Limited, less specific
- Security: Rely on Web Security
- Payment gateway: Credit card
- Portability: Limited due to heavy computer weight and large size
M-commerce
- Device: Smartphone, tablet, pager
- Operating System: iOS, Android, Symbian (EPOC)
- Platform: Websites, mobile applications
- Location tracking: more location-specific
- Security: Based on Web security combined with mobile security
- Payment gateway: Credit card, mobile banking
- Portability: Easy due to the lightweight of wireless handsets and smaller size
M-Commerce Statistics: 3 Remarkable Figures
M-Commerce global share
Mobile purchasing has quickly gained popularity among consumers.
Specifically, the global share of m-commerce in e-commerce increased to 72.9% in 2021, while this figure was only 58.9% in 2016. This means the rate gained 14% in only five years, an incredible speed.
M-commerce sales growth
The revenue of m-commerce is expected to reach $3.56 trillion by the end of 2021, an increase of 22% compared to 2020.
The statistics on the growth rate of m-commerce are also awe-inspiring. Since 2016, m-commerce has grown at an average of 33.1% yearly. Expert expects it to remain similar speed in the coming years.
Customer behavior
Along with new commerce trends, consumers also arise new behaviors and psychology. They are willing to download applications to mobile devices for a better shopping experience. At the same time, they also consider the price and the opportunity costs before deciding.
Statistics show that 70 out of every 100 people download business apps. Additionally, 77% of US consumers use their mobile devices to compare the prices of the physical and online stores before purchasing. Another statistic shows that 67% of customers make purchases through mobile applications.
M-Commerce: Advantages And Disadvantages
Pros
Reach global market
In the era of e-commerce, anyone can quickly scale their business and find new opportunities. You can easily add money to an ad campaign or tailor it to your target audience.
When your business grows, there’s no need to worry about adding new space for your customers. Everything is ready online for you. Some business models like dropshipping don’t even require you to manufacture the product, pushing you to grow faster and further.
With m-commerce, reaching the global market is entirely possible.
Insightful customer data
Collecting data via mobile devices is one of the ultimate approaches for the most information. The device can provide a user’s location, preference settings, email, phone number, etc. It also tracks a user’s interaction on the web store and apps.
The critical point is that it’s easier to ask for information like names and addresses via mobile since customers want to enhance their convenience and usually have that info saved on their device to use auto-fill.
Offer better customer care
Applications and websites are always full of information and more customer care services than traditional platforms. Customers can quickly chat with staff wherever they are through their phones or apps like Whatsapp.
The collected data from a customer’s device also allow staff to support each individual better. The staff can view customers’ past orders, preferences, etc., to offer the best solutions for them.
Cons
Technology access required
If a customer doesn’t have a mobile device, they can’t access the business’s online services.
Even if every customer owns a mobile phone, their device must be able to connect to the Internet.
Customers’ internet and device quality are also essential. They must be able to load the webpage quickly, find company information, access the product portfolio or service information, and send their order. Your shoppers can only have perfect UX when all the above requirements are met to have a successful experience.
Need frequent updates and maintenances
In addition, you also need to invest in application upgrades and maintenance.
Your mobile app and website may have errors after a long time of operating. When your buyers find these errors, it may negatively impact their experience.
Besides, web and app updates are also essential to bring new events such as Christmas, Valentine’s, New Year, etc. These special days are great opportunities to create stimulating demand for vouchers.
Get A Reliable M-commerce Solution Provider Now
M-commerce is huge, but not every company can afford to invest in a complete application.
Therefore, companies that provide m-Commerce solutions are considered the first choice for businesses with small and medium resources or those who want to test this form.
At Tigren, we bring you the best m-Commerce development services with optimal cost and quality.
We have over ten years of experience in mobile-friendly website, progressive web app, and hybrid app development. Our team are dedicated and skillful and strives to deliver top-quality services to you.
Bottom Line
The increasing popularity of smart mobile devices in recent years and the continued development of eCommerce have fueled m-commerce’s growth. Although only appearing for about ten years, many customers have quickly supported this type of commerce.
The potential of m-commerce is enormous. If you haven’t known about it yet, learn and apply it to your business model! Remember to find a credible agency for the best result.
