With more and more people having access to the internet and using digital technologies, e-commerce has rapidly become an integral part of our daily lives and the retail landscape worldwide. Consequently, the annual growth rate of digital purchasers is extremely high. In 2020, more than 2.2 billion people made purchases online, generating over $4.2 trillion in sales, as reported by Statista.
Since mobile devices are generally less expensive than desktop computers, mCommerce’s market share is also on the rise. This trend will continue, with mCommerce expected to make up 72.9% of all eCommerce sales in 2023. This is why it is so important for online business owners to understand the nuances between eCommerce and mCommerce and how to leverage the best of both worlds.
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What Does It Mean to Do Business Online and on Mobile Devices?
Internet-based and mobile-based commerce initiatives share a common goal: to facilitate customer convenience and expand a company’s reach beyond its immediate geographic area. You can easily distinguish between the two modes of doing business by considering eCommerce to be a catch-all term for all types of online purchasing. However, only a fraction of all eCommerce sales are considered “mCommerce,” which stands for only those purchases made via mobile device or tablet. Despite serving a similar function, we will discuss the many ways in which the two differ in the following section.
Some Key Distinctions Between Electronic Commerce and Mobile Commerce
The general concept of shopping on a computer and shopping on a mobile phone or tablet is similar, but there are important differences that merchants should discuss and take into account.
Places where purchases can be made
Obviously, the consumer’s preferred method of making a purchase is the defining characteristic that separates eCommerce from mCommerce. E-commerce, or “online shopping,” is the practice of purchasing goods and services through a computer’s web browser. Unlike traditional e-commerce, which is limited to desktop computers, m-commerce allows customers to shop from their mobile devices using either retailer-specific apps or those made available by third-party marketplaces like Amazon and eBay.
Convenience for customers to access
With eCommerce, you can connect with customers when they are most likely to be online, whether it’s to surf the web, check their social media accounts, or look for goods and services. However, mCommerce encompasses not only web-based purchases made from a mobile device, but also app-based purchases made within the app itself. With the use of applications, you can reach a wider audience through push notifications even when they are not actively using the internet and are on the go.
Possibility of Movement during Shopping
Customers have more freedom to shop when using eCommerce and mCommerce than they do at traditional stores because they can do so whenever and wherever they like, 24 hours a day, seven days a week. With mCommerce, however, customers can shop from anywhere they have internet access on their mobile device. In addition, shopping apps are made to make making a purchase as easy as tapping a few buttons. As an added bonus, they probably accept contactless payment methods like Apple Pay and Google Pay so that customers don’t even have to take out their credit cards. Online shopping, on the other hand, requires customers to locate a quiet spot and take the time to complete their transaction on a desktop computer or portable laptop.
Potential for tracking a target’s location
E-location commerce’s tracking capabilities are restricted because devices are tied to a single physical location, or at most a handful of locations in the case of a laptop. Meanwhile, m-commerce apps make use of the mobile device’s connection to Wi-Fi and GPS to pinpoint its precise location. Mobile commerce apps that incorporate location tracking can cater to customers wherever they may be by offering them relevant products and services. If you want to keep tabs on your customers, mCommerce can help you do it, but you need their permission at every stage. Despite downloading the mobile app, not all customers feel comfortable allowing the app to track their location. This eliminates any potential benefit that mCommerce could have enjoyed from location tracking.
Comfort and rapid deployment
When designing for mobile devices, it is important for companies to take into account the smaller screens and more hands-on nature of mobile shopping. Mobile app shopping is convenient because it usually only takes a few taps to select the items and check out the cart’s content. However, shopping on a retailer’s website is typically more challenging when viewed on the go. While this is great for the store because it allows them to show more information on the screen the customer is looking at, it can be frustrating for the customer and cause them to abandon their purchase. The website, however, is well organized and simple to use on a desktop or laptop computer.
Security
It’s generally agreed that online and mobile shopping are more convenient than ever, but that security is a major concern for consumers. Consumers rely heavily on the security features of the website and their internet connection when they are doing online shopping. Some customers are still hesitant to use their credit cards online because of security concerns, despite the availability of multi-factor authentication. However, mCommerce provides a higher level of protection for online transactions. In addition to the safety provided by your device’s OS and network, making a purchase in a mobile app often doesn’t even require entering your credit card number. Most mCommerce apps now support Apple Pay and Google Pay, meaning you can pay with biometric authentication methods like face ID, fingerprint, and retina scans, which have been shown to be more secure than entering credit card numbers.
Several Positive Aspects of Mobile Commerce
Building a successful mCommerce strategy can have far-reaching effects for any company. Let’s examine the benefits you’ll reap from incorporating mCommerce into your sales strategy.
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Activation of the customer base and customization of services
You can connect with your customers on a more individual level by providing them with a mobile-optimized version of your store, a mobile application, or the ability to shop directly from their Facebook or Instagram feed.
In-store customers can be engaged in real-time through mobile apps that employ beacon technologies or near-field communication. Placed on shelves and counters, these sensors can pick up the presence of nearby mobile devices. Customers can get a tailored shopping experience based on where they are in the store. Customers can let you know if a specific product they want is out of stock in their size, and you can send them a push notification through the app as soon as it is back in stock.
Platforms like Facebook and Instagram use an algorithm to show users posts that they will find most interesting. You can reach potential customers with fairly tailored content that encourages them to shop what they see on the images if you concentrate on growing your audience and interacting with them through the Facebook and Instagram mobile apps. With this strategy, you can increase your customer base and boost their opinion of your products and company.
Enhancing the Shopping Experience
Traditional shoppers still dislike waiting in long lines to pay for their items at brick-and-mortar establishments. One of the most precious commodities in today’s fast-paced world is time, so it stands to reason that we would prefer to complete our mundane daily tasks as quickly as possible. If you want to improve the shopping experience at a non-traditional brick-and-mortar store, look no further than Amazon Go. Customers can scan themselves as they enter the store with the help of artificial intelligence and mobile applications, then go straight to shopping. Any items they remove from or return to shelves will immediately reflect in their virtual basket. When they are finished shopping, the items in their virtual cart will be checked out and the corresponding amounts deducted from their digital wallets.
A similar solution has the potential to shorten the amount of time consumers spend shopping and cut down on labor expenses. To save money, business owners can automate the entire payment process by offering an online checkout via a mobile version of the store or a specially designed mobile application. These apps can also be used for customer support. A floor plan will be provided so that shoppers can locate their desired items quickly and easily. They can also help customers out by suggesting related items that are often purchased together, which not only improves the shopping experience but also may aid the company in getting rid of unsold stock.
Pros of online shopping
On the other hand, eCommerce has benefits that you should think about when you’re planning how to increase sales through an online presence.
First place to get in
If you run a traditional storefront business, eCommerce is likely to be your first step into the digital world of doing business. Online stores have been around for a while, so people are already used to them. This also holds true when you are making one. CMSs (Content Management Systems) make it possible for even people who don’t know how to code to make and update eCommerce sites quickly and without too much trouble.
You can also buy “turnkey” eCommerce stores that are already built and have products in them. All you have to do is make the store live and start getting orders. On the other hand, if you want to use mCommerce’s benefits and add a mobile app to the mix, it can end up being quite pricey. A professional can charge tens of thousands of dollars to make a complex shopping app that also helps the customer.
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To sum up
As the mCommerce market gets a bigger share of all eCommerce sales around the world, your business will definitely benefit from going further into mCommerce than just having a responsive website. If you have enough money to put money into a mobile app for your store, we strongly suggest that you do so. But if you’re not there yet, you might want to set up a seller’s account with one of the biggest online marketplaces like Amazon, eBay, or Etsy in addition to selling your products on your website. This way, their apps will also be able to access your shop and products. Also, don’t forget that mCommerce refers to more than just apps. Some of the benefits can be used even if you only use social media sites like Facebook, Instagram, and Pinterest.