M-commerce is booming, and not showing any signs of slowing down. Within the next two years, it is expected that the majority of purchases will be completed using mobile devices.
The cost of developing mobile apps has dropped down, and even local businesses have began to realize the advantages of selling their products on a custom made app vs. a website. The market is now filled with all kinds of mobile m-commerce services – including retail apps, business apps, banking apps and more
The COVID-19 pandemic is also a marking point in the world of mobile e-commerce :For online retailers, there seem to be two main ways to see this opportunity:
The first is to completely stop investing in marketing, online, ecommerce and social media. The second way is to invest more into online services to help mobile consumers get what they need and want safely and effectively, online and to use this opportunity to gain an advantage over the less risk taking and online savy competitors.
Holiday 2020 is not going away and, the COVID-19 safety measures are here to stay. This means there will be a major opportunity to serve consumers online since most people are still reluctant to the idea of shopping in crowded spaces such as malls or large department stores.
Even if the government decides to lift the protocols, all of the industry experts agree that the change from physical to digital shopping is here to stay. Smart retailers are investing into their online positioning to benefit big in the next coming months and years.
Table of Contents
What exactly is Mobile Commerce (mCommerce)?
M-Commerce englobes any monetary transaction done on a mobile device like a smartphone or tablet.
It is basically the next level of E-commerce, giving everybody the ability to buy and sell products or services from almost anywhere, simply using a smartphone or tablet.
The different types of mobile commerce:
- Browsing products online using a mobile device
- Searching for specific products online using a mobile device
- Reading product reviews or viewing product comparisons on a mobile device
- Purchasing app-economy services (such as rideshare or food delivery apps)
- Purchasing or renting digital content (paid apps, video, music, etc.) on a mobile device
- Interacting with branded apps (such as the Amazon shopping app) on a mobile device
- Mobile banking
- Mobile retail payments (such as Samsung Pay or Apple Pay)
- Mobile person-to-person payments (such as Venmo or the Cash app)
It is the new standard for the online shopping experience as it offers many advantages over regular E-commerce from a PC or Web Browser, mainly due to the fact that mobile devices are connected to the internet 24h/7 and are overall quicker, more feature rich and more convenient to use.
With the continual growth in smartphone & tablet ownership, mobile commerce is becoming more and more popular. With it’s wide range of practical applications, m-commerce is already starting to emerge as a leading method of marketing and selling amongst innovative businesses.
The emergence of the process of shopping, payment, and delivery of products has become seamless & smooth with m-commerce.
- 8 out of 10 Americans shop on their mobile devices (Pew Research Center)
- Experts predict that by 2021, mobile commerce sales will account for over half of total e-commerce sales.
- More than half of retailers already have a mobile app, and over 50% of the rest are going to build one soon.
The many advantages offered by m-commerce apps can be leveraged by both local and global brands and businesses.
If you’re a business owner or a decision maker in an organisation wondering whether investing in a mCommerce application is the right move for your business, this article is for you.
We will cover both the advantages and disadvantages of M-commerce and the context in which it makes sense to invest in such an app for your business.
Advantages of M-commerce over e-commerce
For many small to mid-sized retailers, a native app has been on in the talks for quite some time.
When built right, a mobile app gives a more personal connection to the end user and can convert sales two to six times better than a website or mobile website.
Customers can access your store and services 24/7!
MCommerce makes it easier to clients to see your latest products, deals and coupons because it gives them a quick access to your store with the click of a button. No more need to know the opening hours, or to travel to your store.
Your clients can now purchase from your store at all times! It makes the shopping experience easier, more simple and less time costly.
Another way through which mobile apps help your customers access your store is by using ‘’push notifications’’ to remind them of promotions at any time of the day. The ability to establish such a direct line of communication with customers is one of the main reasons why so many companies are now choosing to create e-commerce applications.
Push notifications are instant, and, at the same time, they’re unobtrusive. Direct alerts about updates, new products, and promotions offer a new level of personal engagement. And 70% of users actually find them useful, so you don’t risk that users get annoyed with your brand communications.
Offer a better, more personalized user experience
User experience is the top priority in eCommerce. Nowadays, most people are quite familiar with using tablets and smart phones. Therefore a mobile e-commerce shop makes your products and services more accessible, and easier to find for potential customers.
Also, a mobile e-commerce has many features that a regular e-commerce store doesn’t have which further enhances user engagement & customer satisfaction like social media integration and personalized promotions through push notifications.
To put it briefly, a smooth, mobile e-commerce experience equals better conversion rates & income for your business.
To succeed in your eCommerce business, your mobile app should be:
- Intuitive & Simple to use
- Well Organized & Fast
- Interactive & Engaging
- Exclusive & Tailored to your customers need’s
Reach a much wider audience: new potential clients
According to the latest statistics, by 2021, the number of people who own a smartphone will rise to 3.8 billion. This is roughly half of the current world population and every person with a mobile device is a potential customer.
Accessing your offer will be much easier for users if all it takes is downloading your app from an app store. Compared to buying products in a traditional way where a customer has to drive, walk then browse items in the store, stand in a line to pay. An mCommerce app allows customers to browse your offers from anywhere, even when they’re on the go.
Gather valuable customer data to enhance marketing
In a traditional retail store, a customer will walk in, make a purchase, and then leave which makes it hard to know why they bought a specific product and what factors influenced their choice.
With m-commerce, you can get answers to these and more questions. That’s because mobile analytics allow tracking consumer data from the moment of product discovery all the way to the moment of purchase which can help you better understand the psychology and purchasing habits of your customer base.
The precision of mobile analytics will depend on your business strategy and the resources you can allocate to mobile app development.
The more specific and personal your offers, the better your customers will respond. Personalized content helps to expand your reach and increase engagement with your brand, ultimately driving customer loyalty and improving the conversion rate.
And this is another one of the advantages of mCommerce. By analyzing the behavior patterns and individual preferences of app users, you can deliver personalized content easily. This can be, for instance, special promotions or offer based on the user’s shopping history.
Some apps are designed to track user behaviors and offer product recommendations in real-time. This translates into higher conversion rates and increases customer loyalty.
Challenges of mobile commerce apps for business owners
Just like any other technology, mobile commerce comes with its fair share of challenges. Here are the most important of them together with strategies you can use to mitigate these risks and gain a competitive edge thanks to the advantages of m-commerce applications.
It is a fact that mobile commerce is on the rise, and companies across all sectors are now turning their attention to mobile apps. With the growing need for mobile solutions, you can also expect competition to be fierce in the coming months. Most mid size retailers are now either sincerely considering or already building their own m-commerce apps.
To be competitive, your application needs to deliver a unique user experience and offer the exact features and information your user base needs when they’re shopping for your types of products.
Consumers who download mobile apps are becoming increasingly aware that companies are tracking their behaviors and collecting important data. With that kind of power comes certain responsibilities. Partnering up with an experienced and trustworthy mobile development agency can help you to address these risk and understand how to use data in a safe way that keep customers satisfied.
Should your business invest in M-Commerce ?
A well-designed mobile app is a major investment that can take multiple weeks to build. But for most businesses who already have leveraged the power of online and social media, this is the next logical step.
Customers are now expecting more than ever to have a digital option for shopping and it is clear that even after the pandemic settles down, we are going to see long-lasting effects. Apps have a much better sales conversion rate than mobile websites and offer deeper engagement at a time when this is most needed.
This pandemic will end at some point and, when it does, there will be clear winners and losers. Retailers that took risks to adjust and shape their offering toward a customer base seeking deeper engagement and simpler and smoother ways to checkout will be a step ahead on the competition.
It is clear that the new normal that is now emerging will have mobile commerce as a cornerstone.
If you run a business that could benefit from a mCommerce app, investing in it right now is a smart move. You don’t want to be late to the mobile party.
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