M-Commerce - Meaning, types and Examples

M-commerce, or Mobile Commerce, is about buying and selling through smartphones and tablets, simplifying online shopping without needing a computer. With 6.37 billion mobile users globally, these devices have become vital for daily tasks, from messaging to groceries. As technology evolves, M-Commerce grows rapidly, offering a quick and secure way to access goods and services on the go. This article explores M-Commerce types, benefits, and more.

What is the M-Commerce?

• Financial Services: Imagine handling your banking or investments right from your mobile device.
• Telecommunications: Easily tweak your services, pay bills, and check your account details, all from your handheld device.
• Service and Retail: Ordering and paying for things on the go through online stores become seamless for consumers.
• Information Services: Stay updated on financial news, sports scores, traffic updates, and weather forecasts – all accessible through your mobile device.

Types of Mobile Commerce

1. Mobile Shopping: This is where you use your mobile device to buy stuff. Think of using the Amazon app or a web app to make purchases. If you're shopping through a native app (like Amazon's), that's called app commerce.
2. Mobile Banking: It's like having your bank in your pocket. With mobile banking, you can access your accounts, do financial transactions, pay bills, and even trade stocks – all through a secure app provided by your bank. Some services might use SMS or chatbots, like the WhatsApp chatbot that lets you check balances and transfer funds in real-time.
3. Mobile Payments: Forget cash or cards; here, you use your mobile device to pay. Digital wallets like Apple Pay allow you to buy things without swiping a card. Apps like PayPal and Venmo serve the same purpose. QR codes on your phone also come into play, letting you make payments directly to someone's phone or bank account. It's all about sending money conveniently through your mobile device.

Functioning of Mobile Commerce (M-commerce)

• Total Mobile Traffic: Check how many people are using your app.
• Total Application Traffic: Keep tabs on overall app usage.
• Average Order Value: Understand the average amount spent in each transaction.
• Value of Orders Over Time: See how the value of transactions changes over a period.

What is the Difference Between M-commerce and E-commerce?

• Mobility:
• • E-commerce happens on desktop computers, tying users to a fixed spot.
  • Mobile Commerce occurs on handheld devices, offering the freedom to shop anywhere with an internet connection, even on the go.
• Location Tracking:
• • E-commerce relies on limited location tracking like IP addresses, providing a broad idea of the user's location.
  • Mobile Commerce uses Wi-Fi and GPS technologies for precise location tracking, allowing personalized recommendations and targeted notifications.

• Security:

• • E-commerce often relies on credit cards, which are considered riskier due to potential misuse and security breaches.
  • Mobile Commerce enhances security with features like biometric authentication, mobile wallets, QR codes, and even cryptocurrencies, closing some of these gaps.

• Reachability and Convenience:
  • Mobile Commerce is more accessible, reaching a broader audience through mobile apps and providing a faster and easier buying experience.

M-Commerce Advantages and Disadvantages

Advantages of M-commerce

• Large Customer Base: Mobile Commerce attracts a bigger customer base than regular e-commerce because it's more accessible. Mobile analytics also help businesses understand customer behaviour for personalized offers.
• Convenience: Mobile Commerce makes it easy for customers to compare prices, read reviews, and make purchases whenever and wherever they want.
• Product Variety: Customers get a wide range of products, often with competitive pricing.
• Automation: Mobile payments like Apple Pay and one-click checkout options automate the buying process, simplifying transactions.
• Omnichannel Experience: M-commerce allows products to be sold across various channels like websites, Amazon, eBay, and Instagram, offering a seamless buying experience.

Disadvantages of M-commerce

• Poor Execution: Designing user-friendly interfaces for small screens is complex and costly. A bad mobile experience can frustrate users.
• Payment Issues : Mobile payment options might not be available everywhere, and not all digital wallets are supported.
• Tax Compliance: Businesses must navigate and comply with different tax laws when shipping to various countries, adding complexity.
• Security Vulnerabilities: Security concerns make some users hesitant to make mobile payments. Fraud risks like SIM swaps and mobile malware can discourage users from using their phones for transactions.

What is the Growth of Mobile Commerce?

• Mobile Retargeting: Instead of random ads, businesses are focusing on contextually targeting potential customers, offering a higher return on investment. For instance, marketers send ads to users who visit their app or present targeted ads to those near their store.
• Augmented Reality (AR): The integration of AR in mobile applications is rising. Retailers like Ikea leverage AR to let shoppers virtually test products in real-time. Brands like Coca-Cola and Zara also incorporate AR in their mobile apps for enhanced digital content.
• Mobile SEO: With the increasing number of smartphone users, mobile-friendly websites are crucial. Non-responsive sites risk user abandonment, impacting SEO rankings. Adapting websites for handheld devices is a key goal for businesses.
• Mobile Banking: Mobile banking's significant advantage lies in sending money anytime. This trend is anticipated to continue, with a projected 169.3 million mobile banking users in the United States as of 2021—nearly 80% of consumers citing mobile banking as their favourite access mode.
• AI, Chatbots, and Shopping Assistants: AI-powered chatbots play a vital role in e-commerce, assisting users with product recommendations, purchases, and customer support. The global AI chatbot market will reach $3.99 billion by 2030.
• Mobile Ticketing: Mobile ticketing revolutionizes the purchase and receipt of event tickets, eliminating the need for physical copies. Users can buy, receive, and scan tickets directly from their smartphones.