Here’s Everything You Need To Know About Mobile Commerce

Here’s Everything You Need To Know About Mobile Commerce

Here’s Everything You Need To Know About Mobile Commerce

Mobile commerce (m-commerce) refers to any commercial transactions that take place via apps or mobile sites

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?

  1. 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. 
  2. Shipping Costs: Shipping costs may add up on each transaction done during an m-commerce purchase.  
  3. 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.