What is M-commerce?
Mobile commerce or M-commerce refers to the business platform where you can buy and sell products and services with the help of your smartphones (wireless handheld devices). With the advances in technology, smartphones and tablets are equipped with various new features, and shopping software applications are among the most popular features of them all. In this article, you will read about the core concepts of M-commerce, its advantages, and the limitations that you might face when trying to build your own M-commerce platform.
You might be surprised, but different M-commerce categories serve different purposes. You have mobile shopping, mobile banking, and mobile payments. The M-commerce applications that use mobile shopping functionality allow customers to view and purchase products from their mobile devices. On the other hand, mobile banking allows you to make financial transactions using handheld devices, such as smartphones. This type of M-commerce transaction is carried out over a secure network, and the banks provide dedicated apps for these transfers.
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(A man purchasing a product using mobile commerce platform on his phone)
Lastly, we have mobile payments, such as Google Pay, Paypal, and other digital wallets that allow customers to purchase a product without asking them to swipe the card. Samsung has integrated Samsung Pay in its mobile phones where you once scan your credit or debit card, and then you only need to put your phone on the payment terminal, and the transaction will be done successfully.
Advantages of M-commerce
One of the most significant advantages of mobile commerce is retaining the customer with increased accessibility. According to one survey done in 2017, M-commerce is accountable for 34.5% of sales in all E-commerce. You can open an M-commerce app on your mobile phone whenever you want and browse through different products.
It is easier to compare the different prices of products on the same platform. Customer reviews have never been accessible before. At the same time, you can purchase products straight from your mobile phone while you are on a commute or in your bed.
Other benefits of m-commerce include a wide variety of product options and services for the customers. Also, the whole process becomes automated when you are trying to sell products on an M-commerce platform.
Likewise, mobile commerce gives a sense of safety to newcomers. As a result, customers are likely to come back again after making their first purchase. M-commerce has made online purchases more accessible to people living in rural areas where laptops and desktops are not common in sight.
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(Women purchasing stocks using M-commerce platform)
In addition to this, some companies are bringing in cutting edge technology like augmented reality with M-commerce platforms to give better user experience to their customers. One of the great examples of this technique is IKEA, which is using AR to showcase its product’s real-time dimension and looks, to a potential customer in their own space without leaving their homes.
If you have purchased products via an M-commerce store, you know they provide several payment options to make purchases easier for you. You can go with EMI, credit, debit, E-wallets, and cash on delivery payment methods.
M-commerce gives sellers a better way to measure their stats, finding out the best and worst products. Not only this, but you can also find out the products which interest the particular customers, and you can start remarketing campaigns and send them notification for special offers to increase your sales.
Lastly, M-commerce is a whole new platform for marketing products. Many big companies like Samsung, Sony, and Motorola are launching their new products on specific M-commerce platforms to give customers certain advantages.
Disadvantages of M-commerce
M-commerce has both advantages and disadvantages. We have discussed the advantages earlier. Now it's time to highlight some of its issues.
When it comes to making an M-commerce platform from scratch, you end up investing a lot of money in the development process. The app development is not something you can do overnight. It takes both time, money, and research.
Besides, one needs to have a smartphone if they want to purchase products using an M-commerce platform. If you don’t have a smartphone, you can’t download the applications in the first place.
Keeping data safe and preventing data leaks is one of the main concerns of the M-commerce platforms. Even multi-billionaire companies like Amazon are putting lots of effort into making their M-commerce platform safe for transactions.
FAQs on M-Commerce: Revolutionizing Business
1. What is M-commerce (Mobile Commerce) and how does it work?
M-commerce, or Mobile Commerce, refers to the buying and selling of goods and services conducted through wireless handheld devices like smartphones and tablets. It is a subset of E-commerce that allows users to access online shopping platforms, perform transactions, and manage accounts without needing a desktop computer. It works by leveraging mobile apps and mobile-optimised websites, which connect to a business's backend servers to process orders, payments, and customer data.
2. What is the primary difference between M-commerce and E-commerce?
The primary difference lies in the device used for the transaction. E-commerce (Electronic Commerce) is a broad term for any commercial transaction conducted electronically on the internet, which includes desktops, laptops, and mobile devices. M-commerce is specifically a part of E-commerce that is carried out exclusively on wireless mobile devices. M-commerce focuses on a portable, location-aware, and personalized user experience, often through dedicated apps.
3. What are the main types of M-commerce services available today?
M-commerce has expanded beyond simple shopping and now includes a variety of services. The main types are:
Mobile Shopping: This is the most common form, involving browsing and purchasing products from retailers like Amazon, Flipkart, and Myntra through their mobile apps or websites.
Mobile Banking: This involves managing bank accounts, transferring funds, and paying bills through a bank's official mobile app.
Mobile Payments: This includes services like Google Pay, PhonePe, and Apple Pay, which allow users to make payments in-store or online using their mobile devices.
Content Purchase and Delivery: This covers buying and consuming digital content such as e-books, music, movies, and app-based services.
4. Can you provide some real-world examples of M-commerce in action?
Certainly. M-commerce is integrated into our daily lives through various applications. For example:
Ordering food through apps like Zomato or Swiggy.
Booking a cab using services like Uber or Ola.
Purchasing movie or event tickets via BookMyShow.
Shopping for groceries on apps like Blinkit or Zepto.
Making a direct payment at a local store by scanning a QR code with a UPI app.
5. How has M-commerce revolutionized modern business operations?
M-commerce has fundamentally changed how businesses operate by providing a direct and personal channel to customers. It allows for 24/7 accessibility, enabling sales at any time and from anywhere. Businesses can leverage location-based services to send targeted promotions, use push notifications to engage users, and streamline the customer journey from discovery to checkout, thereby improving conversion rates and fostering customer loyalty.
6. What are the key advantages of adopting M-commerce for a business?
The key advantages for a business adopting M-commerce include:
Enhanced Customer Experience: Offers convenience, speed, and a personalised shopping journey.
Broader Market Reach: Taps into the massive and growing global user base of smartphone owners.
Increased Customer Engagement: Features like push notifications and in-app messaging create direct communication lines.
Data-Driven Insights: Allows businesses to collect valuable data on user behaviour, preferences, and location to refine their marketing strategies.
7. Why is a mobile-first business strategy so important in today's digital economy?
A mobile-first strategy is crucial because customer behaviour has overwhelmingly shifted towards mobile devices for browsing, research, and purchasing. A business that prioritises its mobile experience ensures it meets customers on their preferred platform. This leads to higher engagement, better search engine rankings (as Google prioritises mobile-friendly sites), and a more seamless user journey. Failing to optimise for mobile can result in losing customers to competitors who offer a superior mobile experience.
8. What are the primary security challenges associated with M-commerce transactions?
While convenient, M-commerce comes with significant security challenges. The primary risks include data theft through unsecured Wi-Fi networks, malware or fake apps designed to steal financial information, and phishing attacks via SMS or email. To mitigate these, businesses use encryption, secure payment gateways, and two-factor authentication (2FA). Users should only download apps from official stores and be cautious about sharing personal information.
9. How do emerging technologies like AI and AR enhance the M-commerce experience?
Emerging technologies are making M-commerce more interactive and intelligent. Artificial Intelligence (AI) is used to power personalised product recommendations, chatbots for customer service, and voice commerce through assistants like Siri and Alexa. Augmented Reality (AR) allows customers to virtually 'try on' clothes or visualize furniture in their homes before buying, which significantly reduces purchase uncertainty and boosts conversion rates.
