Key Advantages Of M-commerce, Important Stats & Challenges For Businesses
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What Is M-commerce?
Mobile commerce or M-commerce is selling and purchasing products and services via handheld mobile devices like tablets, smartphones, etc. It is a form of E-commerce that enables shoppers to make a purchase any time, any place without needing a desktop. Some most common examples of M-commerce incorporate mobile banking, in-app purchasing, digital valets like Android pay, apple pay, etc. The advantages Of M-commerce are endless, as it is very much for users to shop from anywhere, anytime, whenever they need.
Over time, trading over Mobile devices has become more secure, scalable, and faster. According to Statista, about 72.9% of total retail sales is anticipated to be generated through mobile commerce in 2021, which increased from 58.8% in 2017.
What are the different types of M-commerce?
M-commerce can be classified as either mobile shopping, mobile payments or mobile banking.
Mobile shopping is similar to E-commerce. The difference is that it is accessed using mobile devices. Now there are mobile responsive websites, apps, and social media platforms to perform mobile shopping.
Mobile shopping enable shoppers to make purchases using their mobile devices. Increasing demand for mobile commerce has have rise to fast and user friendly mobile apps.
Mobile banking is primarily similar to online banking. In the case of mobile banking, all the transactions are done via mobile devices. Mobile banking generally involves a dedicated application. However, some banks are experimenting with the use of AI-based messaging apps and chatbots.
However, the most secure way to make or receive payments is through online business banking accounts that you can integrate into mobile apps. Such accounts give you access to features like real-time account balances, secure payments and transfers between different accounts, and more helpful data-driven insights.
This type of m-commerce focuses on the progressive development in payment methods done using mobile devices. Nowadays, customers can take benefit of multiple payment options that work beyond the mobile wallet.
Key Stats To You Should Know About M-commerce
To help you get better understanding of M commerce and its growth here are some important statistics.
- About one-third of the buyer’s decision to purchase a product is influenced by customer search on the mobile device.
- The total number of buyers in the U.S. making purchases over a mobile device is anticipated to reach 168.7 million.
- A report by Forbes shows that about 70% of mobile searches lead to action within an hour.
- 76% of customers use mobile devices for shopping as it saves their time [source: Dynamic Yield].
- Shopping is the rapidly growing mobile app category with 54% you growth[Source: Statista].
- 51% of mobile shoppers in the U.S. make their purchases through mobile apps.
- Global M-commerce rate is growing at 29%, which is more than E-commerce growth rate, which is 22%.
- The global mobile payment market is anticipated to reach $5.4 trillion by 2026.
- Business Insider Intelligence anticipates m-commerce size to rise at a 25.5% compound annual growth from 2019 to 44% of E-commerce, 2024.
Due to the convenience offered to consumers by M-commerce, more buyers are getting attracted to it. So with the advancement of technology and unique features has made smartphones a driving force behind the growth of m-commerce.
Benefits of Mobile Commerce for business
As it is evident from above, that M-commerce is all about business over mobile devices. So let’s take a look at the advantages of M-commerce offers to companies.
1- Accelerated Buyer’s Journey
Most business owners think that offering a responsive website to their consumers can provide them with the same experience as mobile apps, which is not correct.
Mobile apps are 1.5x faster as compared to websites. So as a result, they enable users to browse and purchase products more quickly on their smart devices. This will give a massive advantage to businesses. And that want to provide their consumers with the best possible user experience. And streamline the buying process as much as possible.
2- New Marketing Channels
One of the most biggest advantage of M-commerce is that it offers numerous ways of online marketing. And by meticulously analysing and monitoring the online traffic in your app. You can plan a powerful marketing strategy to gain more visitors. Mobile commerce lets you reach your target audience directly with a mobile app. Which will consequently reduce your marketing cost. Integrated social media channels in the app lets you encourage users to spread word about your brand in their network. In conclusion, mobile commerce will help reduce your marketing cost and make your marketing efforts more effective.
3- Valuable Customer Data
Now mobile apps are equipped with an in-built analytics tool to track customer behavior and data throughout their purchase lifecycle. Knowing your consumers is an essential factor in planning a successful marketing strategy. Through the inbuilt app analytics, you can track your visitors’ location, age, choice, behavior, etc., how frequently they make purchases, etc. App Analytics lets you understand the complete shopping pattern of your customers. The sophistication of your analytics tool will depend on your marketing strategy. And the resources you are allocating to your app development. So analytics with important features lets you increase sales by reaching consumers proactively with personalized offers.
4- Reaching Audience At the Perfect Time
The right message delivered at the right timing can effectively convert your audience into paying customers. Amongst the vital advantage of m-commerce for businesses across different sectors is that it allows you to target audiences at scheduled times.
There are features like push notifications through which you can notify your customers. About any new offers and updates regarding your product. You can schedule push notifications and send them to your customers. Whenever you think it is the right time to reach them.
Also, you can reach the customers during a specific time by taking advantage of programmatic advertising and geo-targeting. And through geo-targeting, you can target the audience of some particular location. So nothing can be more effective than the rightly delivered message at the perfect timing.
5- Broader Reach And Accessibility
The biggest advantage of M-commerce is that it enables organizations to reach new markets that they could never enter before. Now the use of mobile devices is increasing every day. And now almost every person uses a mobile phone. From students to entrepreneurs, everyone owns a mobile phone. And every person with a mobile device is a potential customer. So such an extensive user base provides ample opportunities for nurturing and generating leads. So accessing your offer will be convenient for users if it just needs to download your app from the app store. Unlike physical stores, mobile apps do not require you to stand in a queue and go out shopping. So through mobile apps, you can browse all the products at your fingertips and reach a global audience. There are immense advantages of m-commerce through which you can do fabulous and hassle-free shopping.
Expand Your Online Reach With A Feature Rich Mobile Application
Challenges faced by M-commerce for business
Despite endless advantages by the m-commerce industry, some challenges need to be fixed to stay ahead in this competitive environment.
1- The Dilemma in Responsive Website and Mobile Apps
Mobile commerce businesses face the dilemma of choosing between responsive websites and mobile apps. However, both app and responsive website have their pros and cons. Although, developing a mobile application is considered to be an expensive option. But now, for the businesses running an online store. It is essential to turn their store into an interactive mobile application.
2- Streamlining the Purchasing Experience
M-commerce is a highly competitive market. There are already several organizations working on the M-commerce platform. Organizations are striving to offer their users an enhanced experience. Now there are mobile responsive websites and feature-rich applications that fulfill customers’ needs. It is now quite challenging to survive in this competitive market, where there are already big players working in this sector.
3- Transaction Issue
Sometimes there are also some transaction issues in m-commerce due to security issues. Also, mobile devices are prone to get misplaced or stolen. Which increases the risk of theft for fraudulent transactions. So when developing an application for online commerce, it is imperative to consider the security concern.
4- Increase in mobile devices
Mobile organizations consistently strive to develop innovative, better, and smarter smartphones to get a competitive advantage. The latest version of the numerous operating systems is also getting brainy every day. The online sellers need to be updated with this speedy technical advancement. And make important hardware and software updates at the right time to fulfill the consumer’s requirements.
5- International competition
Having an international audience seems good. But the challenges that occur during the target of a global audience are quite tricky. So if you want to target an international audience. You need to include the features like multi-language, RTL support, and multi-currency in your app, to make it accessible for users across the globe.
How to overcome these challenges?
The ultimate goal of every business is increased sales and revenue. To increase the sales and revenue, it is imperative to offer your customers an enhanced user experience. So to provide your customers an enhanced user experience. It is essential to keep in mind the latest trends and requirements of the market and consumers. So choose an app development firm that offers you with latest features required in the market.
MageNative is an app development company that offers an application with amazing features like
- In App WishList
- Push Notification
- Abandoned Cart Campaigns
- All website payment gateways supported
- Scheduled Push Notifications
- Augmented Reality
- Multi currency
- Multi Language
- AI Product Recommendations
- Google Analytics
- Facebook SDK
- Add to cart on listing
- Android Bottom Navigation Menu
- QR Code Search / Scanner
- Show out of stock
- Shopify Recommended Products
- RTL- Support
- App Live Preview
- In App WishList
- Real Time Sync
- White Labeled App
- Product Share
- All website payment gateways supported
- Deep Linking
- Facebook Messenger
- Zendesk Chat
- Tidio Chat
M-commerce is unprecedented and is rising exponentially. It has both advantages and some challenges as well. But despite these challenges, m-commerce is still a number one option for businesses to grow in this digital era. You require to do is to stay updated with the latest technology and trends. And offer your customers a seamless and hassle-free mobile app user experience. For this, get started with an application with unique features that enhance the user experience and boost your online sales. Try MageNative with a 30-day free app trial.