What Is M-Commerce?

M-commerce, also known as mobile commerce, refers to buying and selling or doing transactions via a mobile device, like a phone or tablet. Mobile commerce has grown a lot in popularity because of its added convenience and heightened security.

Differences Between eCommerce and M-Commerce

eCommerce relates to the buying or selling of products through any capable device with an internet connection, which includes computers and laptops as well as phones and tablets.

M-commerce, however, only involves using smartphones, tablets, and other mobile devices for doing commerce. As such, mobile commerce is a subset of eCommerce.

M-commerce usually takes less time than eCommerce as it usually involves fewer steps. Mobile devices and apps are designed for a streamlined experience, so it takes just a few button presses to navigate to where you want to go.

Another advantage of m-commerce has to do with the nature of mobile devices—that is, being mobile. You can take your mobile device with you wherever you go, so it’s always close at hand and easily accessible. Also, you can use location-based services thanks to your phone’s GPS.

Types of Mobile Commerce

There are three major types of m-commerce, including:

• Mobile Payment Apps – Digital wallets such as Google Pay, Apple Pay, Samsung Pay, and PayPal are examples of mobile payment apps. You can download the app, input your card information, and then use it to make secure purchases, transfer money, and track spending.
• Mobile Banking Apps – This refers to using a dedicated banking app on your mobile device rather than accessing your bank account via a desktop computer or going in person to a physical bank.
• Mobile Shopping Apps – For example, Amazon, Chewy, and Best Buy all have mobile shopping apps where you can easily look through the product catalog and shop for items without leaving the interface. You can also enable push notifications to get important updates.

There are also two subcategories of mobile shopping worth noting:

• Social Commerce – Instagram’s shopping feature is one example of social commerce. Retailers can list their products for customers to purchase or explore on the social platform. Facebook also has a storefront where users can promote and sell items.
• QR Codes – QR codes are scannable codes that can open a website or app on your device, saving you the need to manually type it in. QR codes can be scanned by any smartphone just by using the camera, so they’re especially helpful in physical stores. You can scan the QR code to go to an in-app checkout page to make your in-store experience easier. They can also be used for in-store product labeling, marketing, exchanging information, and connecting to wifi.

Why Does Mobile Commerce Matter?

When it comes to m-commerce, there’s a lot of opportunity to reach new customers, drive sales, expand marketing tactics, and improve accessibility.

Like eCommerce did before, m-commerce is growing rapidly in reach and popularity among consumers and businesses alike. Here are some other reasons why you should consider implementing a mobile commerce strategy:

• More and more consumers are using mobile devices to make purchases.
• Consumers can make faster purchases on mobile phones than on a desktop website, due to faster load times and other factors. This leads to fewer abandoned carts and increased sales.
• eCommerce websites that don’t give a good mobile experience negatively affect consumer’s perception of the brand and about two-thirds will leave the site and never come back.

Industries that Benefit from M-Commerce

Certain industries might benefit more from mobile commerce, but don’t write off m-commerce if you’re not on this list! Having a mobile commerce strategy is beneficial and will only get more so as time goes on.

• Financial Services – As mentioned above, payment apps and banking apps are major parts of mobile commerce. Paying the monthly bills, accessing bank account details, and checking stocks and investments are just a few digital button presses away.
• Telecommunications – Mobile commerce allows account reviews, bill payments, and service changes to be easily completed via your mobile device.
• Service and Retail – All you need is a smartphone or tablet with internet connection to order and pay for items and food.
• Information Services – Mobile devices are a treasure trove of information. Not only do you have access to stock levels, sport figures, and traffic alerts, but you also basically have the entirety of human knowledge at your fingertips.

Mobile commerce has certainly made our lives easier due to the easily accessible and portable nature of mobile devices and the number of services available. If you want to run a successful eCommerce business, it pays to implement m-commerce software.

Advantages of M-Commerce

Mobile commerce offers several advantages, including:

• Enhanced User Experience – Being able to shop and manage finances from a mobile device anywhere is convenient and can be done faster than on a traditional website. Mobile optimization also means a simpler interface, which many users find easier to use. Other features like augmented reality, chatbots, and messenger apps further enrich the m-commerce experience and allow businesses to interact with customers.
• Phenomenal Growth – The m-commerce sector has been growing phenomenally over the past several years. Thus, businesses who invest in m-commerce can expect a better ROI and conversion rate.
• Multiple Payment Options – The introduction of mobile wallets has emerged as one of the biggest advantages of m-commerce. With just a single click, customers can check out easily at stores without having to manually enter card or shipping details every time, even at a new online store. There are also contactless payments, where mobile users can use their digital wallet like a credit card in physical stores by holding up their phone to the tap scanner.
• Omnichannel Experience – This refers to selling on multiple channels, devices, and places, online and offline. It’s best to have as many options for consumers as possible, but also to monitor what customers want the most and where they spend the most time so you can evaluate what’s most profitable. Having at least a desktop and mobile optimized website is a must since most consumers will use both. Having a mobile app is also a good idea if your consumers spend more time on mobile.
• Easy Price Comparison – The traditional way of knowing the best price of a product was to buffer through several catalogs before entering the physical store. Mobile commerce has transformed this, as with just a few clicks, customers can find out the product prices and shipping costs offered by various stores and land the best deal. To overcome this, you as a business need to be constantly aware of what your competitor is offering.

Disadvantages of M-Commerce

• Constant Optimization Needed – Everyone like a smooth-running application with minimal load time. Staying updated with technology is important to ensure that your website and mobile app run fast. Load speed directly influences conversion rate.
• So Many Choices – As with everything, there needs to be a balance between not enough choices and too many. Research supports that with too many options, people become increasingly unsatisfied with their choices. With the abundance of mobile payment options out there, it can get overwhelming for users if they have to choose between twenty different options each time. So instead, it’s best to analyze your clients’ data to figure out the best payment options to present apart from hassle-free one-click solutions.
• Wide Range of Regulations – Mobile commerce allows businesses to expand their reach internationally. However, this calls for the need to become familiar with tax laws prevalent in the countries you’re shipping to. This can be challenging, but there are ways to overcome these barriers. One way is to sell your goods on an online platform like Amazon, as they’ll take care of the regulations on your behalf. Another way is to get an eCommerce platform or integrations that make dealing with taxes, customs, and duties much easier, and automate these processes.

Mobile commerce is a large part of eCommerce sales and will only continue to grow. Thus, choosing to mobilize a mobile commerce strategy is not only beneficial for your business, but essential. It will also pave the way for a larger client base.