- Mobile Commerce In Retail
- Mobile Commerce Growth For Business Startups
- Mobile Commerce Growth For Business Grants
- Us E-commerce Growth
- Amazon E Commerce Growth
Read this article to learn about the meaning, opportunities, problems and concluding observations of M-Commerce.
M-commerce, or mobile commerce, involves shopping through a mobile device (typically a smartphone), while e-commerce involves shopping online through your computer. Insider Intelligence forecasts.
Meaning of M-Commerce:
M-Commerce, very simply, could be defined as follows:
M-commerce is using a mobile phone to carry out business transactions a system that is based on WAP (Wireless Application Protocol) technology and e-commerce framework.
- Mobile Commerce (M-Commerce) Statistics 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. 96% of Americans own a cellphone (Source: Pew Research Center.
- The mobile revolution is creating a new buzz in businesses and the eCommerce space is no exception to this. Mobile eCommerce appfor your business is changing how online shopping is done. Thus, lead you a step ahead in the competitive retail sector to win the extra mile.
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WAP is a global standard developed to make Internet services available for mobile uses.
A company that has an Internet site can make the information available for mobile users by transforming pages into WAP pages.
The basic idea of M-commerce is to distribute information and thus to generate business in a mobile way.
WAP has been designed (and is owned) by a consortium (i.e. a group of companies working together on a particular project) of leading industry vendors like Nokia, Ericsson, Motorola and many others, which are all committed to developing an industry grade standard. Explanation of terms.
For better appreciation of M-commerce concept, the following terms are explained:
(i) Protocol:
Protocol means a set of rules that control the way data is sent between computers.
(ii) Page:
Page means a section of data that can be shown on a computer screen, at any time.
Opportunities in (or Applications of) M-Commerce:
M-commerce offers business enterprises the greatest growth opportunities since the dawn of W.W.W. i.e. World Wide Web (WWW is a multi-media system of sound, pictures and video for finding information on the Internet). Through m-commerce, business enterprises can access new customers who would never have used a computer. The scope of possibilities for m-commerce applications is very vast.
Applications of M-Commerce:
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Some applications of m-commerce may relate to fields like:
1. Mobile banking
2. Stock market reports
3. E-bills
4. E-salaries
5. Booking functions
6. Placing and paying for orders, on fly
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7. Auctions
8. Retailing
9. Advertising etc.
Benefits of M-Commerce:
Some benefits of m-commerce for business enterprises are:
1. Cost reductions due to streamlined business processes
2. Reduced sale cycles
3. Increased revenue streams by accessing new customers.
4. Better customer service
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5. Increase in goodwill etc..
Problems in M-Commerce:
Some of the problems which might contain the growth and application of m-commerce are:
(i) The existing technology is not best suited for mobile data transfer; as the connections are unstable and data transfer duration is too long.
(ii) The existing technology is very costly.
(iii) There is lack of standards relating to mobile phone to network interface; the interfaces between host and mobile platforms and between different mobile platforms.
(iv) There is a problem of security associated with m-commerce applications. For example, it is not sure what kind of people are behind the billions of mobile devices.
(v) The man-machine interface on mobile phone is currently sub-optimal and difficult for mass-market users to manipulate.
Concluding Observations of M-Commerce:
Companies like Nokia, Ericsson, Siemens, and Motorola are promoting M-commerce actively. However, one study of Ericsson Consulting indicates that m-commerce has a very poor popularity in the developing world.
Lack of infrastructure (wireless and business), poor input and display capabilities in cell phones coupled with customer indifference and fear to learn new things are some of the factors which restrict and contain the popularity of m-commerce in the developing world.
Even in developed countries, m-banking has made customers uncertain and has slowed down mobile banking. Market feedback will heavily influence the future development of M- commerce.
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M-commerce and mobile apps are drivers of billions of dollars of revenue every year. ThinkMobiles notes that “M-commerce revenue has been rising at 30-40% rate annually since 2014…The biggest retail app, Amazon, increased the number of customers from 43 million in 2015 to 67 million in 2016.” While Amazon hasn’t been a small to medium-size business for a long time, it’s still an impressive growth figure that’s indicative to the importance of mobile commerce across businesses.
Both B2B and B2C SMEs have the potential to tap into some of these numbers with the right m-commerce strategy and approach. A good mobile commerce strategy can help grow customer engagement and offer other notable benefits to SMEs.
Overall, the benefits of m-commerce for small business enterprises include cost savings and innovation that leads to better business growth. The Journal of International Business Research and Marketing notes that m-commerce can be particularly beneficial in creating business success in developing countries, saying, “Online business saves the costs incurred on brick and mortar stores such as rent, salaries, insurance, decorations and other things needed for setting up a physical store. Data from eMarketer shows that more than 80% of all online shoppers use mobile shopping as well and this number is estimated to grow to 95% in the year 2019. Mobiles have become a major E-Commerce platform, and platform for advertising, movies, TV shows and e-books. It brings innovation as in the case of Alipay, Uber, Airbnb and numerous other apps that are used every single day by millions of users around the globe. It makes enterprise efficient, effective, and competitive thus drives growth.”
M-commerce and small business enterprise benefits
Here are some of the ways that mobile commerce continues to drive the growth of small business enterprise organizations and why it should be a priority of SMEs.
1. Faster transactions
Mobile Commerce In Retail
Mobile apps make it easier and faster to load data and search results on mobile devices. This means that customers can browse products and menus faster, leading to faster transactions. Being able to make purchases directly through a mobile app has led to more positive customer experience, repeat purchases, and increased sales.
2. Enhanced customer experience
The customer experience matters. It’s not enough to have a good product or superior service. Businesses with an app that’s easy to navigate, fast, interactive, and convenient will see higher conversion rates and increased revenue. Also, many apps offer exclusive benefits like points or discounts to users, which increases engagement. The most compelling reason to use a mobile app to increase your customer satisfaction? Most customers interact with apps daily and have an expectation that businesses they interact with will have one, often not considering a business with those that don’t. Basically, a good mobile app can earn more customers and better customer loyalty.
3. More direct customer connection
Mobile Commerce Growth For Business Startups
Apps have push notification capabilities that can send messages directly to a customer’s device. These notifications allow your business to offer specials, discounts, sales, product launches or make other announcements instantly. While some users will turn off this functionality, it can grow your brand exposure for those that don’t.
4. Personalized content and offerings
Mobile Commerce Growth For Business Grants
Much like Amazon, mobile apps can offer specific content based on user behavior, shopping patterns, search, location, and more. Amazon uses its proprietary algorithm to make product recommendations to customers based on what they’ve purchased and based on other customers who have purchased or searched the same thing. This kind of personalized outreach can lead to better customer loyalty and increased sales for your small business enterprise.
5. Better analytics
Us E-commerce Growth
App downloads and interactions give your business a lot of customer data for your business to hone in on and use to create even better customer experiences. Having a better insight into shopping patterns, behaviors, trends, and other data can help your business when it comes to forecasting, product development, and more.
6. Reduced cost
If you’ve already captured a user by getting them to download an app, you’ve saved yourself marketing dollars. If your business is mobile app only, you save significantly over having to host a physical location. You can also likely cut down on salary cost by employing fewer people than you would need to staff a location. Money saved can potentially be reinvested to help you grow your SME.
Amazon E Commerce Growth
Are you using m-commerce to its fullest potential to help grow your SME? Technology continues to drive business, fuel innovation, and create better customer and employee experiences. Using mobile commerce and mobile apps to grow your customer reach and engagement is a necessary move in modern business. Finding the right mobile development platform can help you reap all the benefits of mobile app technology for your small business enterprise and allow you to be both successful and competitive in your industry.