With the rising usage of mobile devices and mobile purchases, more number of online and offline retailers have started to incorporate mobile commerce into their business strategy. Even though mobile commerce is not a sales channel, it is an expedient way to assimilate the existing online and offline channels. This post clearly illustrates the current function of m-commerce and how it would shine out in the near future.
Mobile Commerce / M-Commerce
E-commerce giants are enhancing their businesses by updating their mobile estimates every now and then. Paypal, in 2012 updated its mobile estimates three times from $5 billion to $8 billion to $10 billion, thus finishing up a yearly increase of 150%. Amazon and eBay also have witnessed similar increases with more than 20 % of sales coming from the mobile channel.
A commercial activity on a mobile device (like mobile phone or tablet) is termed as mobile commerce. Everyone knows how important mobile devices play in our day to day lives. Our smartphones and tabs remain in our companionship wherever we go and stay with. It happens to be a tying twine between real world and online world. This illustrates the bombastic growth of augmented reality and mobile media in today’s world. Mobile customer experience can be interchanged either online and offline. QR codes are one best example for offline anchors with which any offline marketing visual becomes the store itself.
M-Commerce Vs E-Commerce
You know why mobile devices came into existence? Using mobile devices is considered to be a convenient method to act quickly online while the entire world is running offline. Convenience, location and speed are pretty necessary in understanding the differences between traditional online and the swiftly growing mobile behavior. Mobile users believe that their devices help them in all their offline activities like price checking, short communication and location services. The differences become more absolute when comparing mobile commerce to e-commerce. All activities like price, user reviews and product comparison are performed using the computer in case of eCommerce. But with m-commerce, physical sources and time matter widely.
Today a plenty of retailers are making use of the m-commerce technology to enhance their businesses. The m-commerce landscape is becoming wider each day and resulting to the advancements are the outstanding growth in numbers. Researchers have found out that mobile commerce and mobile usage will become an essential requirement for businesses in the future days. Webcredible conducted a recent research which focused on the qualitative behavioral observations and interviews conducted over smartphone users. Get to know the recent numbers on mobile usage.
• Almost 43% of US mobile users visit offline and buy online
• 68% of males and 58% of females make purchases based on the mobile ads.
• 80% of smartphone owners use their device to shop (habitually via Amazon)
• More than 90% of shoppers use two or more channels in the process of purchase
• 80% of smartphone users wish to have more mobile optimized product info in stores
• Mobile online time increases 14 times faster than desktop online time
• By 2016, mobile influence factor for retailers will increase to $689 billion.
• About 86% of sites are not mobile proof and hence provide a negative mobile experience
M-commerce – The Future
With mobile commerce rising every second, the predominance of businesses is quite predictable. M-commerce witnessed an 80% growth in 2011 which was overtaken to 105% in 2012. And now, it has been predicted that the industry will generate $119 billion to $1 trillion by 2014. Predictions for the near future of mobile commerce are made in respect to the rising growth rates of both the number of mobile devices and the number of adapting users. The revenue share is also expected to rise for 120% in 2013. Purchasing products and services via mobile devices will become a crucial and familiar aspect in the next one or two years.
• Plenty of retailers are updating their current web shops to their mobile versions and about 14% of them are building fully responsive mobile shops. Anyhow, we still address a mobile customer as an online customer.
• Online retailers who connect offline to cross-check their online products every now and then are greatly in rise. This can be a great approach to provide their mobile users an easy location related commercial opportunity.
• Social impact of mobile devices is also expected to rise in the upcoming years. Google wallet, Apple passbook, Groupon and Facebook commerce have all made it easier to integrate commerce into our every day social mobile activities.
• Mobile payments are again considered a boom for customers. The industry is sure to evolve and go higher bounds in the years to come. Even credit cards, banks and payment gateways will offer options to provide mobile ways to checkout. PayPal and after pay providers are also expected to become default payment methods.
• And finally comes the ‘app’ thing. App can be a better way to hit your products by performing an in-app purchase. As they could be set visible as an icon on the mobile screen, they could easily be employed. Cross platform web apps suit all mobile devices and require a lot of less management and investments.
These are not just the guesses made on mobile commerce, but a better idea on what will happen with mobile commerce in the near future. Customers for all time look for a quick and short solution for their online shopping needs, and if it could be made possible via mobile devices, there is nothing more satisfying. Researchers conclude that m-commerce is now in the early stages and will surely dominate online businesses some day that is not too long to go.