On average, a person uses their smartphone for 4 hours and 8 minutes. That is a significant amount of time spent on a phone, and some of that time is spent purchasing online. Business proprietors in the commerce industry were aware of this reality. Retailers started developing applications with user-friendly checkout procedures and catalogs.

M-commerce is not a brand-new phenomena or technology. According to reports, there will be approximately 187.5 million active mobile shoppers by 2024. Mobile commerce is demonstrated when you visit Amazon to make a purchase or subscribe to Netflix. There are examples of m-commerce wherever you look, particularly because mobile devices account for around half of all eCommerce transactions.

As a result, forecasts indicate that m-commerce sales will total $4.5 trillion, accounting for roughly 69.9% of all eCommerce sales. But why is mobile commerce so popular? This article will provide insight into the influence of m-commerce on brick-and-mortar retailers, as well as a roadmap for its future expansion.

What is Mobile Commerce?

Mobile commerce, or m-commerce, is a subset and outcome of the eCommerce revolution. While eCommerce refers to buying and selling digitally across all devices, the former is exactly what it sounds like. M-commerce refers to online transactions completed using mobile devices such as tablets and smartphones.

Mobile commerce enables store owners to sell their products via mobile devices. It is extremely convenient, therefore it is not surprising that it is gaining popularity in the corporate sector.

According to research, 49% of shoppers compare service prices using their mobile devices. Meanwhile, over 40% of customers utilize their mobile coupons, while 30% learn more about a product they enjoyed. The data highlight the growing popularity of mobile-first shopping tactics. Customers frequently prefer to interact with your website using cellphones.

You can classify mobile commerce into three categories. These include:

1. Mobile Shopping

Gone are the days when customers had to visit your store and queue up at the counter to purchase things. Mobile shopping platforms allow users to buy products and services online through their mobile devices. All they need to do is open your website and find the perfect item they want from the convenience of their home.

You can showcase your exclusive range of products and services on your online platform. This way, users need not be near your desktop every time they shop. Mobile devices will allow them to scroll through your products and buy from anywhere and anytime. Thus it can be a more self-reliant and convenient alternative.

2. Mobile Banking

Financial institutions introduced online banking platforms to facilitate transactions on the mobile screen. Almost every bank has its own adapted version of the website or a mobile application. It allows users to carry out transactions without going to a branch.

Users can now do all their banking transactions with only a few taps on their phones. The application provides clear and concise information and retains a record of your actions within reach.

3. Mobile Payments and Digital Wallets

Innovative and online transaction methods have paved the way for easy mobile payment solutions. M-payments enable customers to pay for their purchases through a mobile device. Apple Pay, CashApp, Google Pay, and Samsung Pay are among the known and trusted payment platforms. 

In addition, these mobile payment apps facilitate wallet service for speedy transactions. Digital wallets allow customers to add an electronic version of their card to their account or app inventory. Users can thus move from app mobile search to purchase in seconds.

How is Mobile Commerce Revolutionizing the Customers’ Shopping Experience?

The rise of eCommerce has already resulted in tremendous progress in the corporate sector. Customers might use their desktop PCs to access a variety of options and shop from home. Users can still do these things, but only with a phone in their pocket.

M-commerce offers various options to assist commerce firm owners in improving the overall mobile shopping experience:

1. Merging Online and Offline Shopping

You can see the impact of mobile commerce on brick-and-mortar stores in various ways. Mobile commerce platforms integrate physical and online shopping. Customers can access online comparison tools when shopping physically and streamline the process.

Read Also: How to Improve Mobile Commerce Conversion Rates

Let’s understand it better with a practical example. The renowned pizza chain Domino’s has been using mobile commerce since 2014. Not long ago, Domino’s developed a Pie Pass technology to accelerate pizza pick-ups for takeaway customers. Customers can now order via app to skip the line when they grab their order.

2. Authentic Omnichannel Experience

Did you know 90% of customers switch between devices to complete a task? Store owners with omnichannel mobile commerce adoption achieve 91% greater customer retention rates. It means the method of using multiple channels to sell products. 

The omnichannel strategy ensures a seamless buying experience and maintains a consistent brand message across all the touchpoints. The well-known U.S. retailer, Target, invested $7 billion to overhaul its supply chain and witnessed a 145% increase in sales.

3. A Wide Range of Payment Solutions

M-commerce makes the transaction process even more effortless with multiple payment solutions. Many applications and websites offer a one-click feature, allowing users to input their payment information only once. They can leverage the one-click option to fill in the desired data every time they purchase.

Take Starbucks, for instance! The coffee giant offered mobile payment options in 2015, which accounted for 20% of transactions in 2017. Starbucks receives online mobile payments from over 23.4 million users every six months.

4. Personalized Experience

Personalization is not new in marketing. But it is a critical factor in the success of mobile commerce. Consumers have higher expectations for customized shopping experiences. In fact, almost 91% of users are more likely to buy from brands that provide them with reoffers and recommendations.

Sephora is one such example. The beauty and cosmetic giant revolutionizes the approaches to self-expression and personal care and has etched its name in the hearts of millions. Its mobile app updates the layout each time a consumer accesses it. Further, it tailors the content according to the user to facilitate personal experience.

Mobile commerce is an outgrowth of eCommerce that has existed for many years. But what causes are propelling its growth? Here are the key reasons for the growth in m-commerce:

1. Mobile Phone Usage

The primary reason for an increase in m-commerce is the natural progression of technology. As per a report, consumers spent 3.8 trillion hours, downloaded 435,000 apps every minute, and paid $320,000 for apps every minute globally. It is evident that users spend more time on mobile devices than desktops.

2. Convenience

Mobile shopping convenience attracts customers and drives significant growth. The choice of many stores and the ability to search for products, compare prices, and finalize the product without leaving home motivates users to shop anytime. M-commerce is likely to continue rising in the future. And a mobile app is the best way to get your share of the pie.

3. Personalization

Customers appreciate self-care and personalized offers. About 71% of customers expect tailored service or interactions. Mobile shopping apps can be a win-win situation. It allows users to access additional products based on their preferences and purchases.

4. Accessibility

Mobile shopping platforms are becoming more profitable for store owners. The app Amazon has 23 billion registered users, while Walmart ranks number one in the US with almost 25 billion registered users. Mobile apps give users access to the whole itinerary from the comfort of their homes. They can track their product and receive delivery notifications.

5. Mobility

Carrying a phone in hand is way easier than a desktop. Mobile devices are smaller. Therefore, users can perform commercial activities anywhere, even in places with no internet and electricity. The portability feature contributes to making m-commerce broader.

Benefits of E-commerce For Businesses

E-commerce encompasses much more than just running an online business and selling products over the internet. E-commerce sites enable firms to manage client connections on a worldwide scale by reaching out to more potential customers and demographics than a traditional location.

However, it is not only about market reach and an online presence. It’s about integrating cutting-edge technology such as artificial intelligence, data analytics, and cloud computing to create tailored shopping experiences that set you apart from the competitors (and search engines).

For example, an ecommerce company can employ CloudTalk’s retail calling solution to boost sales and customer service. Sales and customer service teams may effortlessly provide personalized suggestions in real time using advanced capabilities like as CRM connections, Automatic Summaries, and Tags. This can improve client happiness and loyalty to your business while also increasing online sales.

The global B2C ecommerce market reached $4.8 trillion in 2023 and is projected to nearly double to $9 trillion by 2032. This is just one example, however, since ecommerce applies to various business models, each serving different needs. Here are the main types:

• Business to Consumer (B2C): Businesses sell directly to customers. For instance, if you purchase apparel from an online-based company such as Amazon or Zara, you participate in B2C ecommerce. 
• Business to Business (B2B): In this setup, businesses sell to other businesses instead of directly to customers. For example, Alibaba sells products in bulk to other companies, which then sell those items in their own stores.
• Consumer to Consumer (C2C): Individuals market to each other through sites like eBay and Craigslist. For instance, selling your old phone online through eBay.
• Consumer to Business (C2B): Here, individuals sell products or services to businesses. An example is a freelance graphic designer seeking design jobs through freelance sites such as Fiverr or Upwork.
• Business to Government (B2G): Organizations supply merchandise or services to the government or one of its departments. For instance, a communication solution provider firm selling software applications to a governmental agency through a B2G contract. 
• Business to Business to Consumer (B2B2C): This is a mix where a business sells to another business, which then sells to the final customer. A typical example is a food manufacturer selling products to a retailer, like a grocery store, which then sells the products to consumers.

When you deliver a great, user-friendly experience, customers are likely to come back for more. Ecommerce isn’t just beneficial for customers, however; it also offers numerous advantages for business owners. We’ve already hinted at what these advantages might be, but let’s take a closer look: 

No Overhead

One of the biggest perks of having an ecommerce website is saving money. No need for expensive storefronts, rent, or in-store staff. Since it’s so cost-effective, you can put those savings into other important areas like improving your products or marketing efforts.

Broader Market Reach

Ecommerce lets you connect with customers all over the world, not just in your local area. With 56.6% of shoppers preferring to buy online, having an ecommerce platform and presence is key to growing your brand and boosting sales.

Enhanced Customer Insights

Considering 54.6% of people leave a brand after one bad experience, understanding your customers is more important than ever. Through tools like Sentiment Analysis, Topics Extraction, and a Real-Time Dashboard displaying call center metrics, you can access crucial customer data such as what they like, what they buy, and how they shop.

Improved Inventory Management

With ecommerce, businesses can manage their inventory more efficiently. Automated systems keep track of inventory in real-time, so you know when it’s time to restock. This helps you avoid running out of popular items or over-ordering items that don’t sell.

Flexibility and Agility

Whether you’re launching a new product or reacting to market trends, ecommerce allows businesses to quickly adjust and keep up with customer demands. These operations can be optimized with tools for call center monitoring, ensuring quality customer interactions and consistent service delivery.

Bottom Line

Mobile commerce has the potential to become a popular retail channel, influencing customer behavior. It is a beneficial technology for both customers and retail owners like yourself. Customers can receive personalized service discounts, special offers, reminders for saved goods or abandoned carts, and a more efficient shopping procedure. Meanwhile, you can obtain a better return on your marketing investment.

However, creating a successful mobile app requires more than just a compelling UI and graphics. It is vital to grasp the need of developing sophisticated yet user-friendly mobile commerce solutions. Commerce business entrepreneurs must deliver an exceptional consumer experience across all devices.