Due to the massive growth of mobile devices and the extensive use of Internet services, many eCommerce and retail companies have embraced more mobile-centric tactics. It is an essential way for businesses to communicate with their customers and with their family members and close friends.

Due to the ease of use of M-commerce (mobile commerce) and its increasing popularity, people are increasingly likely to make purchases via their mobile devices, websites, or apps. Consumers are ready to embrace the mobile device to make online purchases as more corporations release their apps.

What is Mobile Commerce?

Mobile commerce is the use of wireless gadgets like smartphones or tablets for business purposes, such as:

• Product sales and purchases
• Online transactions
• Bill payment
• Online banking

The primary goal is to improve customer experience on mobile, which will subsequently result in improved exchange rates and earnings. Mobile wallets, mobile payments, mobile banking, and mobile shopping are the three main subcategories of m-commerce.

The future of eCommerce is mobile commerce, which will eventually take its place. Even the combination “mobile eCommerce” has been heard rarely. Thus, it is not as crucial to grasp how these two ideas differ as it is to realize that m-commerce attempts to improve the consumer experience on mobile devices for a greater mobile conversion rate and income. So for online businesses, the mobile marketing trend is the most important one. 

Mobile commerce products are available in various shapes and sizes. However, the three most common mCommerce models are the following:

1. Mobile Banking

Mobile banking apps seem similar to online banking apps. However, some transaction types may be restricted or limited on smartphones. Mobile banking, most of the time, takes the form of a dedicated application that brings customers a great experience and high security. Some financial service institutions experiment with innovations, including chatbots and messaging apps.

2. Mobile Shopping

This form of mobile commerce works like a mobile counterpart of eCommerce. It usually refers to online stores that are accessible through mobile devices. Businesses that are looking to enter the mobile scene create mobile-optimized websites. Also, they invest in dedicated apps or take their sales to social media platforms, such as Facebook or Instagram.

3. Mobile Payments

This type of mCommerce implementation focuses on the wide range of mobile payment options available to consumers. Mobile payments revolutionize how we transact, offering a seamless and convenient experience. With a simple tap or scan, users can securely complete transactions using their smartphones, eliminating the need for physical cards or cash.

Benefits of Mobile Commerce for Business

Signal-boosters.co.uk have shown that 62% of smartphone users have made a purchase online using their devices within the last 6 months. The number of retailers buying through mobile devices is continually rising, so businesses must be ready to accommodate these newer habits to maximise profits and reach as many customers as possible.

Here are key benefits that m-commerce for business:

Ease of Access

Customers can use mobile applications to quickly access their preferred retail stores, offering one of the fastest shopping experiences to date.

There’s no need to travel to a store while mobile apps and websites are generally much quicker desktop sites, saving the customer time and effort that is invaluable to the modern consumer. There are few things more convienent than having access to online shopping the tip of your fingers.

Usability

Mobile applications typically offer a better user experience for customers. They’re optimised to offer a fast and streamlined shopping experience that is easy to navigate and only requires a few clicks, making sales and leads easier to achieve as the consumer has a much more enjoyable experience compared to other methods.

Marketing

M-commerce platforms offer a new marketing channel that should be taken advantage of. For instance, with a mobile application you have a direct connection to end users, giving an invaluable marketing channel where you can sell products directly to the consumer via their mobile device.

From push notifications with the latest deals to creating a newsfeed with information above the latest products and prices, there are various tailor-made marketing functions available on m-commerce platforms that allow you to better target customers.

Fast Transactions

In general, most mobile applications are faster than a traditional website, meaning m-commerce offers faster transactions for your customers. Time is money in the world of e-commerce, so giving customers the chance to buy things quicker than normal can be very lucrative.

Quicker browsing and a better user experience have resulted in a massive surge in online sales through mobile devices – it’s a huge benefit of m-commerce and one of the driving forces behind its growth.

Helping Traditional Retail Sales

M-commerce doesn’t just benefit online sales but also in-store sales. This is because consumers are using their mobile devices to check products they browse in store, looking for things like product reviews, pricing options, and whether nearby stores have certain items in stock.

With the right m-commerce platform, businesses can expect to drive sales both in-store and online, ensuring they’re accommodating a wider market.

Lower Costs and Higher Productivity

Using a mobile app to connect to customers quickly can save money on marketing campaigns with less impressive results. Better still, social media integration can further reduce social media marketing costs, utilising customers to help spread the brand.

Moreover, the costs of developing and maintaining an application are typically much lower compared to other e-commerce platforms, saving more money and freeing up resources. For example, an app often costs as little as 20% of it’s development price to operate.

Reducing the costs and manpower needed to operate marketing campaigns is a huge benefit that m-commerce offers retailers.

Attracting New Customers

The great thing about ecommerce is that you can always target new customers. Anyone that comes across the website may be converted into a sale, and this is no different with m-commerce platforms.

People are using their phones to search online these days, so with a mobile optimised site you can increase the likelihood of attracting new customers.

Read Also: Mobile Commerce vs Ecommerce: Which is Better?

M-commerce functions such as mobile re-targeting also help in this regard, allowing retailers to target adverts at customers visiting their website. There are several tools available in m-commerce that allow business to continue to attract new customers, so businesses should be taking full advantage of these to increase sales and leads.

Insightful Data Analytics

M-commerce platforms such as mobile applications provide businesses with insightful analytics that let them better target their customers and increase sales. Data such as name, sex, location, email, buying history can be easily gathered with user-analytics integrated into the mobile software, although to what degree depends on your budget and the overall quality of the application.

There are different analytic tools available through m-commerce platforms that give businesses invaluable data to understand and target their users. This same level of data and analytics isn’t as easy to gather on other e-commerce platforms, highlighting just how beneficial m-commerce is for the modern-day retailer.

Advantages and Disadvantages of Using Mobile Commerce

Advantages

• Better User Experience

When customers are making purchases on their smartphones and tablets, user experience is one of the most crucial elements. Moreover, customization aids in giving clients a distinctive and pertinent user experience.  As a result, communication between a customer and a brand is quick and easy.

• Seamless Checkout Process

It takes a little longer to execute a transaction when someone purchases something from a conventional website. On the other hand, the lengthy checkout process is decreased and a seamless checkout process is provided.

• Creates a Global Customer Base

Customers may shop whenever it’s convenient for them, and the internet and mobile devices have the potential to create a global customer base. It creates an additional marketing channel where the best possible use of mobile applications is possible, improving the customer experience. 

• Give the Brand Access to User Data

As soon as a customer logs into a brand’s mobile application, user information begins to be kept. They may quickly access that data and provide the most recent collections and brand offers to clients when a campaign is planned or they wish to share personalized messaging with them. For Example, Swiggy sends you exciting offers and the latest food trends according to your personal choices and keep their users engaged by sending personalized notification. This is where they keep your preferences and user data safe and give a personalized feel.

• It Provides Easy Store Access

It makes it simple to find things available in the market utilizing wireless devices thanks to mobile commerce. Also, you can buy products online rather than going to the store to get your essentials. You’ll save time and work by doing this.

• Cost-Effective

It leads to cost savings and increased productivity. M-commerce is cost-effective since it allows you to spend less on marketing campaigns because mobile apps allow you to contact customers more quickly. Also, it has become more efficient and productive than before while reducing the workload on the personnel.

• Traditional Retail Sales Have Advantages

Mobile commerce can help you with conventional retail sales. Hence, m-commerce is advancing and will continue to do so, establishing a stronger exceptional position in the retail exchanges.

• Establishes a New Marketing Channel

M-commerce will assist you in establishing a new marketing channel because it makes it simple for you to sell your goods to consumers. Also, m-commerce is highly advantageous for your company because people can simply learn everything with just one click thanks to the fact that you will provide all information in your mobile app.

Disadvantages

• Security Issues

Consumers frequently expressed reluctance to share their personal data with brands due to their concerns about its security. For instance, when a brand requests a credit/debit card number and bank account information in order to process an online purchase, many customers have trust difficulties.

• Connection Issues

If a customer is purchasing online, they require internet service to finish the purchase. Although internet access is more widely available, there are still few smartphones and internet connections in rural areas. Your buyer won’t be able to access the mobile design without a proper connection, and your company could lose out on a sales chance.

• Shipping Fees

Any mobile transaction used to purchase a product may result in additional shipping fees. Yet, by establishing a minimum for free delivery and a low cost for shipping the products, purchasers will be encouraged to keep shopping and the number of sales will increase.

• Indifferent Service

M-Commerce involves little to no direct communication with the customer. The only thing that really communicates with consumers is technology. This implies that M-Commerce lacks the personalized touch customers receive in a physical store. 

• Strong Competition

Businesses are adjusting to M-Commerce in greater numbers. Smartphones and other mobile devices are increasingly being utilized for transactions. M-Commerce becomes increasingly competitive as a result. M-Commerce sites can easily appear and feel the same as all other websites, unlike traditional and-mortar stores, which frequently have something that makes them stand out from the competition. M-Commerce websites make it much harder to stand out.

• Lesser Contact with Customers

Less interaction with suppliers is another drawback that drives so many buyers to prefer offline purchases. There won’t be any interaction between the seller and the customer when buyers place their orders after reading the specifications and understanding the features of a certain product. In addition, if a customer has any doubts, they frequently are not addressed in the greatest way possible.

• Problems With Shipping Businesses Trust

If you frequently use M-commerce online applications, you would be familiar with a wide range of reliable shipping businesses that could provide on-time delivery of your goods. Yet, if you forget to think twice before blindly putting your faith in businesses, you may run into difficult problems that may even damage your company’s reputation.

• Uncertainties in fraud

The main drawback of M-commerce is the prevalence of fraud and other ambiguities that compromise the security of sensitive data. Yeah, it has been noted that many potential users face this drawback. Not all consumers prefer Internet transactions because they are less stressful; other people avoid them out of fear.

Conclusion

We can therefore say that mobile technology has improved our standard of living. We do many different things with our mobile devices these days. Therefore, it is only because of this that mobile commerce has reached this stage. The aforementioned data indicates that mobile commerce is anticipated to expand in the future, bringing with it both advantages and disadvantages. In the following years, it will be interesting to observe how and what new facilitating things may appear.