In 2019, U.S. mobile retail revenues are expected to amount to 267.47 billion U.S. dollars – up more than 150% from 156.28 billion U.S. dollars in 2017 (according to Statista). Mobile commerce has captured global markets by providing services in major revenue sectors which were previously non-digitized. However, experts say that this growth is just the tip of the iceberg. In order to understand the outlook of the M-commerce industry, let us first consider some basics.
What is M-Commerce?
Mobile commerce is the process of buying and selling goods and services through electronic, wireless devices. This can include anything from personal digital assistants to smartphones to tablets and even wearables like smartwatches. In the simplest of terms, M-commerce can be defined as sales of goods and services via mobile devices. This is the next generation of e-commerce!
Mobile commerce is a quickly growing subgroup of e-commerce. Let me explain. If you were paying attention during the last decade, people used online websites to buy products and services. Today, people are drifting towards wireless technology. With the rise of concepts like the Internet of Things, On-Demand Services and Cross-Platform Marketing, Mobile software, products and services are starting to blend seamlessly with daily aspects of our very lives! Today, people can barely walk down a single block without using their mobile phone – so you can see why concepts like mobile and close-range marketing are so powerful for driving sales. If people are using mobile more and mobile platforms are so seamless for marketing, then the next logical step is obviously to put up M-commerce platforms so people can actually buy stuff!
Role of m-commerce
Due to rapidly changing technology, the demand for M-commerce has increased faster than that for e-commerce. Where previously, people were shackled to clunky computers, today, a consumer in any corner of the world person can book tickets, pay bills, purchase products and literally do anything you can imagine using location-based M-Commerce services!
Look at all of this from the perspective of M-commerce service providers. This is a huge opportunity for small, medium and large businesses to cash in on! Tech analysts have forecasted that in the coming year itself, over half of the digital retail revenues will be earned through m-commerce. This makes sense because even the advertiser and marketers are sitting up and taking notice of M-commerce platforms such as Instagram for Business or Shopify. One thing we want to point out though. Marketing isn’t just mobile responsive web platforms like Instagram or spotify, Mobile is an emerging platform for a slew of marketing activities which could include anything from Mobile games to Web Posters to SMS Advertising to Mobile Audio and Video MMS Advertising. Let us take a detailed look at M-commerce services to help you understand better.
Types of services provided by m-commerce
Mobile commerce plays an important role by providing services through various applications such as:
Wireless advertising and retailing
95% of mobile internet users look up local information on their phones for the purpose of calling or visiting a business. Wireless technology enables advertisers to target smartphone users at any time or place. By identifying user’s current location businesses can engage and retain the users through proximity marketing, push-notifications, and customized messages.
Banking and financial services
M-commerce has fueled the emergence of a cashless economy by allowing the users to transfer funds between accounts and receive information related to their accounts from financial institutions or banks. More recently, M-commerce has also established itself in stock-trading services and money management. What this means for businesses is that it is much easier for their customers to purchase online.
Games and entertainment
Another way M-commerce applications target people is through push notifications from entertainment apps such as games, video streaming platforms or music platforms. Since users are likely to be playing games, listening to music or watching videos with focused attention, targeting these users at the right time could lead to increased sales for businesses.
M-commerce has made it ridiculously easy to provide location-based services to the customers. Today, hyperlocal targeting can be done through mobile devices that allow users to find the services available at the nearest location. What this means for businesses is that the span of time between a consumer considering the product or services and making a purchase has been significantly shortened!
M-commerce is an emerging platform for businesses to provide services at the intersection of the consumer’s need identification and financial convenience! By making the payment process hassle-free, reaching consumers where they are, and shortening the sales process, M-commerce applications have created a win-win situation for both consumers seeking convenience in the purchasing experience and businesses wanting to cater to these consumers’ needs.
Are you planning to enable m-commerce for your business or startup? Please contact us to get a free quote for your requirements and we can develop the right m-commerce solution for you.