Over time, shopping has evolved from physical store shopping to shopping online. This shift in shopping trends can be attributed to the fact that e-commerce provides both shoppers and retailers with more convenience. Out of all e-commerce channels, mobile apps are the most used. According to Subscriptionly, 67% of the world population owned a mobile phone in 2019. Moreover, reports show that 1.6 billion people use their mobile devices to shop online. The use of mobile devices for shopping is what is known as mobile commerce or m-commerce.
According to the forecast of Statista.com, the global mobile traffic is estimated to reach 127.82 Exabyte in 2020.
If you are a business owner, you can significantly improve your ROI by designing your websites to be mobile-friendly, as a lot of online shoppers are more inclined to make purchases using their mobile devices. Aside from convenience, there are a host of other benefits m-commerce offers to businesses and brands.
Advantages of M-Commerce
Opens Up Rural Markets
With m-commerce, shoppers no longer need to stand in long queues at physical stores to get the products or services they desire. It also eliminates the need to go to a specific location to buy a particular product.
Consumers can now order products via their mobile devices from the comfort of their homes and have the ordered goods delivered to their doorstep. Aside from opening up new rural markets, it also provides an excellent opportunity for business owners to evaluate their current business model and seek new opportunities for expansion.
Global Customer Base
Customers can shop on whatever e-commerce platforms they choose as long as they have access to an internet connection on their cell phones. Also, they can make purchases in their own time and at their convenience. Each of these customers makes up a global customer base.
The development of this large customer base is fostered by the fact that links to shopping websites can be shared via various social media platforms or shopping apps.
Retail M-commerce is projected amount to $2.9 trillion in 2020, about 70.4% of total global ecommerce sales. It will grow to $3.5 trillion in 2021. The chart below exhibits an increasing trend of M-commerce global wide from 2016 to 2021.
A Platform for Large Orders
With m-commerce, brands and businesses can process multiple orders at a time. As opposed to physical stores, business owners are not restricted to funneling customers through a long checkout line. Customers can log on to any e-commerce platform, find what they want, and proceed to checkout.
Variety of Payment Options
With m-commerce, mobile shoppers now have access to a diverse range of payment options. There are now mobile wallets available through which customers can make purchases with just one click. Such examples include Due and Adyen.
Encourages Impulse Purchases
M-commerce provides an experience very similar to what you see in checkout lines at physical stores or malls. Consumers’ decisions are influenced by the pictures they see, information, as well as emotions as they wait to make their order. These factors often prompt them to make impulse purchases. That explains why snacks, colorful products, and drinks are placed very close to the counter in stores and categorized together in online shops.
High-quality and colorful photos are recommended for posting on shopping websites, as they further promote impulse purchases. Additionally, countdown timers or information regarding the limited quantity of items can be used as well because customers are usually inclined to purchase products that are on sale or in limited supply.
Other Applications of M-Commerce
Interestingly, mobile shopping is not the only application of m-commerce. It has other uses, some of which will be discussed below.
Mobile Banking
In simple terms, mobile banking refers to carrying out transactions using a mobile application. It is a step ahead of online banking because it is more convenient and widespread. With mobile banking, you can transfer funds from one account to the other and receive information related to your bank account. Generally speaking, you can carry out all banking transactions on your mobile phone. It has become so widespread that nearly half of mobile users in the US make use of it for more than one purpose.
Mobile Booking and Ticketing
Nowadays, people can make a booking or purchase tickets for various events and receive them on their mobile devices. As soon as the payment is made, a digital ticket is sent to the mobile phone from which the payment was made.
To learn more about m-commerce, its benefits and applications, check out the infographic below.
The Graphic Resource: subscriptionly.net.
