Mobile (M) commerce
PRESENTATION BY:
ABHISHEK DABAS
Introduction
What is Mobile(M) Commerce?
M-commerce (mobile commerce) is the buying and selling of
goods and services through wireless handheld devices such
as smartphones and tablets. M-commerce is a form of e-
commerce that enables users to access online shopping
platforms without the use of a desktop computer.
What are the type of M-commerce?
M-commerce is categorized based on the following three basic functions:
Mobile shopping enables customers to buy a product using a mobile device with an
application such as Amazon or a web app. A subcategory of mobile shopping is app
commerce, which is a transaction that takes place over a native app.
Mobile banking is online banking designed for handheld technology. It enables customers to
access accounts and brokerage services, conduct financial transactions, pay bills and make
stock trades. This is typically done through a secure, dedicated app provided by the banking
institution
Mobile payments are an alternative to traditional payment methods, such as cash, check,
credit and debit cards. They enable users to buy products in person using a mobile device.
Digital wallets, such as Apple Pay, let customers buy products without swiping a card or
paying with cash. Mobile payment apps, such as PayPal, Venmo and Xoom serve the same
purpose and are popular options. Mobile consumers also use QR codes to pay for things on
their mobile phones. With mobile payments, users send money directly to the recipient's cell
phone number or bank account
How mobile commerce works
With most m-commerce enabled platforms, the mobile device is connected to a
wireless network that is used to conduct online product purchases and other
transactions.
For those in charge of developing an m-commerce application, important key
performance indicators to monitor including the following.
• total mobile traffic;
• total application traffic;
• average order value; and
• the value of orders over time.
Similarly, tracking the mobile add-to-cart rate will help developers
see if users are becoming customers. M-commerce developers
may also be interested in logging average page loading times,
mobile cart conversion rates and SMS subscriptions.
Mobile payment products operate through a form of peer-to-peer
sharing. Once a mobile device is paired with a user's bank card
information, the phone can be waved over a payment terminal to
pay for a product.
Contactless payment using a mobile device uses near field
communication technology.
M-commerce vs. e-commerce
Electronic commerce, or e-commerce refers to buying and selling goods and services over the
internet. E-commerce and m-commerce are similar, but they come with a few distinctions from
each other, such as the following:
Mobility. E-commerce transactions can be conducted through a desktop computer where the
user is in a fixed spot. This reduces mobility as it can be difficult to move around a desktop
device. M-commerce offers greater mobility as it's conducted through handheld devices that
can be used anywhere there's an internet connection, including buses, trains and airplanes or
when exercising at the gym.
Location tracking. Many e-commerce apps make use of location tracking capabilities to pitch
users opportunities based on their location. However, the location tracking capability of e-
commerce is limited when it is used with a nonmobile device. For example, the location of an
e-commerce shopper is tracked with their IP address. While the IP address provides a broad
region of the user's location, it is not capable of identifying the exact location, which might
affect the targeted advertising strategies of a business. M-commerce apps, on the other hand,
can track locations using Wi-Fi and GPS-based technologies that enable location-specific
content and personalized recommendations.
Security. Credit cards are still commonly used for nonmobile e-
commerce payments. They are considered riskier than other online
payment methods, even with security measures, such as multifactor
authentication. Most data breaches and identity thefts happen because
of credit card misuse. M-commerce closes some security gaps through
the addition of measures such as mobile wallets, quick response and
even cryptocurrencies.
Reachability and convenience. M-commerce makes it easier to reach
a target audience. With mobile apps, businesses can reach more people
and make their buying experience easier and faster
Advantages and disadvantages of mobile
commerce
The advantages of m-commerce include the following:
• Large customer base. M-commerce provides for a larger customer base
and better retention than e-commerce in general, because m-commerce
capabilities are more widely and easily accessible. Also, mobile
analytics offers insights into customer shopping behavior, pattern and
history. To boost retention rates, businesses can use this data to target
shoppers with personalized offers and tailor-made discounts.
• Convenience. M-commerce makes it easier for customers to compare
prices, read reviews and make purchases when and where they want to do
these things.
• Product variety. Customers can browse through a huge inventory of
products while also taking advantage of the competitive pricing.
• Large customer base. M-commerce provides for a larger customer base
and better retention than e-commerce in general, because m-commerce
capabilities are more widely and easily accessible. Also, mobile
analytics offers insights into customer shopping behavior, pattern and
history. To boost retention rates, businesses can use this data to target
shoppers with personalized offers and tailor-made discounts.
• Convenience. M-commerce makes it easier for customers to compare
prices, read reviews and make purchases when and where they want to
do these things.
• Product variety. Customers can browse through a huge inventory of
products while also taking advantage of the competitive pricing.
Disadvantages of m-commerce include the following:
• Poor execution. The smaller screens of mobile phones and tablets
require specific navigation functionality. Consequently, intuitive mobile
user interfaces are complicated and expensive to design. A poorly
executed mobile customer experience can frustrate customers and deter
them from making purchases.
• Payment issues. Mobile payment options are not available in every
geographic location and may not support every type of digital wallet.
• Tax compliance. Businesses must know and comply with tax laws and
regulations of all countries they ship to. Some businesses will avoid this
by only authorizing purchases from and shipping to their country of origin.
Future of mobile commerce
Mobile commerce is evolving and starting to reach a wider audience. According to
Insider Intelligence, 6.9% of retail transactions will take place through a mobile
device in 2022 and m-commerce will account for 10.4% of all retail sales by 2025.
Many businesses are adopting mobile commerce to avoid falling behind the
competitors
The following are some of the current and future mobile commerce trends:
Mobile retargeting. This concept is an extension of location-based mobile
marketing. Instead of putting ads at random places, this trend targets them
contextually only at potential customers. For example, marketers can send an ad
to users who have previously visited their mobile app or they might present an
active mobile targeted ad to a user who comes into proximity of their store. Mobile
retargeting offers a better return on investment compared with other
advertisement strategies and is likely to become more popular in the future.
Augmented reality (AR). The number of mobile applications with embedded AR is
growing rapidly. To improve its brand presence and provide digital content optimization,
retail giant Ikea introduced an AR mobile application in 2017 that lets shoppers test
products in real time through Apple iOS 11's ARKit technology. Customers use AR
models of IKEA furniture from the mobile app to see how those pieces fit in their home
and office spaces. Many brands, including Coca-Cola, Zara, Covergirl and Pez, also use
embedded AR in their mobile apps.
Mobile SEO. With the growing number of smartphone users accessing the internet,
mobile responsive websites have become a necessity. Websites that are not mobile-
friendly or do not provide a good user experience risk user abandonment, which in turn
increases the bounce rate of their websites. Websites with higher bounce rates rank
lower in SEO and Google searches. Therefore, building mobile websites that are
adaptive to handheld devices is an important goal for all businesses.
Mobile banking. The biggest advantage of mobile banking is the ability to send money
anywhere, anytime. Users can send money to others and conduct transactions with their
bank irrespective of their location. This trend is likely to keep growing. According
to Business Insider, as of 2021, there are an estimated 169.3 million mobile banking
users in the United States, of whom nearly 80% said that mobile banking was their
preferred way to access their accounts.
AI, chatbots and shopping assistants. Powered by AI, chatbots are becoming
essential e-commerce tools. They help shoppers around the clock with product
recommendations, purchase completion, customer support and other tasks. According to
a Grand View Research report, the global AI chatbot market is expected to reach $3.99
billion by 2030. Shoppers are becoming more comfortable with chatbots as they have
become accustomed to chatting with their friends and family over chat apps, such as
WhatsApp, Facebook Messenger and Telegram.
THANK
YOU
PRESENTED TO: PRESENTED BY:
DR. GAURAV TIWARI ABHISHEK DABAS
