What Is Mobile Commerce?
Mobile commerce (m-commerce) refers to any commercial transactions that take place via apps or mobile sites. It is a sub-category of ecommerce or the mobile version of the same.
According to Mordor Intelligence, the mobile commerce market size is estimated at $1.45 Tn in 2024, and is expected to reach $1.99 Tn by 2029, growing at a CAGR of 6.54%. As more people gain access to smartphones and tablets and as mobile purchases get more convenient, this vertical will continue to soar.
What Is The Difference Between M-Commerce And Ecommerce?
Here are the differences between m-commerce and ecommerce:
| Ecommerce | M-Commerce |
| Ecommerce shopping can be done over laptops and desktops through the internet. | All transactions are done via smartphones and tablets. |
| Location tracking is done through the IP address. | GPS, Wi-Fi and cellular connections can be used for tracking the location. |
| It has lesser mobility. | A customised experience can be provided enabling customers to make shopping decisions swiftly. |
What Are Some Of The Key M-Commerce Areas?
- Browsing And Buying: Similar to ecommerce flow on a laptop, m-commerce revolves around users clicking around mobile websites, browsing apps and making purchases. With Snapchat, TikTok and Instagram offering in-app options, this can also happen as a ‘social commerce’ purchase.
- Digital Content (Purchasing And Renting): Think Netflix and Spotify and you can gauge how popular subscription apps have become on the mobile. Users can access an entire library of content after paying the subscription fees.
- Convenience Purchases: M-commerce is no longer related to shopping per se and many online purchases are not mobile-related. These purchases include booking taxis and ordering food or grocery deliveries.
- Mobile App Payments And Wallet Payments: Digital wallets are gradually growing in use as there are various ways to make mobile purchases. A user’s digital wallet can be loaded and a purchase can be made through a thumbprint or a single click instead of inputting credit card details to each app.
What Are The Benefits Of M-Commerce?
- Better User Experience: When customers are purchasing through smartphones or tablets, user experience is one of the most vital components. Customers also enjoy a unique and relevant user experience through personalisation. For instance, customers can initiate a conversation over WhatsApp if they wish to buy a product from a mobile website.
- Provides Access To User Data: The user information starts getting stored and the brand gets access whenever a user logs in to a brand’s mobile application. If the brand wants to send personalised messages to customers or if there is a campaign involved, it can easily access the data and send the latest collections and offers to magnetise them.
- Provides A Seamless Checkout Process: It takes a bit longer to complete the transaction when a customer purchases through the traditional way. A brand is bound to attract more customers with the enhanced purchasing experience and it may even retain the existing ones.
- Builds A Global Customer Base: As customers can purchase at their convenience, m-commerce can build a global customer base. It also creates another marketing channel for the brand.
- Targets More Customers: A mobile app can offer all the functionality that a traditional website can. Sales can be boosted through push notifications featuring discounts.
What Are The Disadvantages Of M-Commerce?
- Security Issues: Many customers face issues in sharing personal information with a brand. The issue can especially be seen while entering bank account details during a purchase.
- Shipping Costs: Shipping costs may add up on each transaction done during an m-commerce purchase.
- Connectivity Issues: As many as 1.05 Bn users accessed the internet via their mobile phone in India as of 2023. However, rural areas still face a lack of internet connection. Due to the lack of mobile connectivity, brands may miss out on selling opportunities.
