Mobile devices have transformed the manner in which the daily activities are performed and the way communication takes place between companies and the consumers alike. In the multi device world, m-commerce and e-commerce have gained considerable popularity. Consumers find it easy to search and buy products that are relevant to them in the most convenient manner. However, m-commerce does away with certain drawbacks of e-commerce viz. lack of mobility, privacy, security, not fully developed software tools and so on. As a result, the global m-commerce economy is taking over and is anticipated to reach 100 billion USD by 2017.
Five years of market research have predicted the supremacy of the m-commerce over e-commerce. There are several factors which have prompted the paradigm shift of e-commerce to m-commerce, such as the follows:
1. No Geographic Boundaries
The shift from e-commerce to m-commerce has been due to the innovation and rapid advancement in the mobile technology that offers consumers with seamless access to the brands, retailers and business from across the globe. These smart phone users have the option of shopping from any store from any corner of the world instead of visiting the local markets or country specific stores or even relying on computers back home or having the pain to start the laptop. It is extremely convenient.
2. Huge Business Opportunities
These mobile retail apps bring in huge opportunities to serve your target market effectively and pep up the acquisition by the customers globally. The modern age people are comfortable with digital technology, which has significantly increased the usage of the tablets and the smart phones. The rapid increase in the adoption of the mobile devices has boosted the number of mobile shoppers.
3. Mobile Commerce Would Outpace E-Commerce ROI
It is a known fact now that the mobile commerce or m-commerce is increasing at a very fast pace. A recent study conducted shows that the ROI of the m-commerce industry would outpace that of the e-commerce by the end of 2016. The study surveyed the behavior pattern of 17600 consumers across 22 countries using the mobiles to shop. It claims that the m-commerce industry would witness a whopping growth rate of 42% as compared to the 13% of the e commerce sector, by the end of 2016.
4. Mobile-only Strategy for the Retail Sector
We have reached an age when the global m-commerce sector is dominating the market and is anticipated towards a more dramatic surge. The industry is growing at a rate three times faster than the ecommerce sector. This is mainly because of the convenience of using the mobile phone anywhere, anytime for shopping as compared to using the laptops and desktops to access the eCommerce websites.
As a result, apart from USA, countries like China, India, UAE, and Turkey are the top players of the global m-commerce sector. Not trailing behind are the giant retail stores like eBay, Walmart, Amazon, GrouponJD.com etc, which have also taken to the mobile first strategy by launching their remarkable native apps for their target audience. Myntra, which is India’s leading fashion retailer, has also chosen the mobile-first business strategy. They receive a wider customer response through their mobile apps.
5. Greater Mobility of the Stores
M-commerce offers the stores mobility that was not present in e-commerce. The m-commerce applications are more location specific and more personalized in their offerings. It provides an intimate store-user relationship that draws more customers towards it. M-commerce is commendable when it comes to location specific outputs as compared to the e-commerce.
6. Time Sensitive Transactions
M-commerce provides time sensitive transactions, which are an absolute necessity, keeping in mind the time constraint in the modern hectic world. Shopping with the mobile device can be done really fast and that is what the customers need.
7. The Benefits Offered By Mobile Shopping
The shift of e-commerce to m-commerce has been boosted by a number of factors, such as secure payment throughout the use of mobile phones; intuitive UI, excellent loyalty programs, easy and fast access, available 24/7, one touch payment and the enhanced awareness of the internet. These factors have attracted customers to the retail mobile apps.
8. The Rise in the Usage of Mobile Phones
According to the data from the Telecom Regulatory Authority of India (TRAI), the number of active mobile connections was around 944 million in 2014 and is expected to cross 1 billion in 2016. In 2014 alone, some 70 million mobile data connections were added. The entry level mobile data plans are cost effective, which costs about 1.3% of the median income. Coupled with this, is the plummeting rates of the handsets. A smartphone is now available for below Rs 5000. Hence, mobile internet is set to make a dramatic impact. This overwhelming increase of the mobile users has propelled the shift from e-commerce to m-commerce.
9. More Personalized Offerings
With the tremendous increase of mobile phone users, reputed Brands like Amazon, are investing in creating world class mobile platforms. Now the mobile customers can shop for the full selection of the products, available, on the website. Using these various mobile apps, the customers can type the name of a product to check availability and prices, or scan a bar-code for that item.
These applications further offer an array of benefits to he customers like they can shop on the go, receive minute-order tracking information and the timely notifications for the exclusives and the new product launches. All these mobile offerings have further perked up the shift from the e-commerce to m-commerce.
10. The Drawbacks of E-Commerce
There are certain limitations of e-commerce. It is not really mobile and there are privacy and security concerns related with e-commerce. The platform cannot be regarded as completely secure for making transactions despite the inclusion of some of the best solutions. Added to this, the telecommunication bandwidth for the solution is inadequate to solve the purpose.
For e-commerce, the tools for the development of software are in the evolution stage. Further, e-commerce and internet cannot be integrated into some of the existing database and applications with ease. Another limitation of the e-commerce is the compatibility issues. These factors have further boosted the shift from e-commerce to m-commerce.
Thus, profound penetration of tablets and smartphones in the developed and the developing countries alike, enhanced awareness of the internet and an upsurge in secure mobile platforms for payment have pepped up the shift from e-commerce to m-commerce.