How Is Mobile Commerce Different From eCommerce?

In the age of technological advancement, many are opting for the benefits of online transactions. eCommerce allows you to order, sell and exchange services and goods over the Internet. Mobile commerce allows you to do the same using mobile devices, smartphones and tablets.

What is mCommerce?

Mobile commerce is a mobile-friendly ecommerce business. You can use applications for mobile devices or sites optimized for them. There is also a broader definition of mobile commerce. It includes mobile payments, money transfers, mobile banking, financial services, as well as mobile internet purchases and apps.

Most online stores do not differentiate between ecommerce and mobile commerce. It’s the same for them. However, it is important to understand that these are two different paths. Each of them requires a specific strategy and particular software development services. Online sales conversions can grow dramatically if you tailor mobile payment solutions to serve all types of mobile devices. eCommerce typically uses the web for at least one stage of a transaction. 

In mobile commerce, purchases are made through mobile devices. These days, mobile commerce for transactions is used in software, electronic books, pharmacy and banking, to pay for food and drinks, travel, and more.

Key differences between ecommerce and mobile commerce include:

1. eCommerce is a business activity on the Internet. If any commercial transactions are made via mobile devices, this is already mobile commerce;
2. Initially, mobile commerce developed along the lines of ecommerce. We can say that mobile commerce is part of ecommerce;
3. eCommerce is an older concept than mobile commerce;
4. The interconnectedness within mobile commerce is much higher than in ecommerce;
5. Activities in ecommerce are carried out using laptops and computers. Mobile commerce uses smartphones, tablets, iPads, and other hand-held devices;
6. Devices using mobile commerce are lightweight and convenient to carry. This is not possible for ecommerce;
7. In the case of ecommerce, the use of the Internet is mandatory. In the case of mobile commerce, it is not always necessary.

Mobile commerce usage statistics

More and more people are using ecommerce platforms through mobile devices. The importance of mobile commerce is increasing accordingly. For example, in 2015, over $ 11 million was spent through mobile commerce. It now accounts for nearly 30% of all US ecommerce sales. With the rise of mobile commerce, ecommerce has reached its peak as it has increased its mobility, accessibility, and interconnectivity.

Now there is no need to look for a place to connect your wired device: the success of mobile commerce lies in the use of wireless networks, SMS, Bluetooth and others. They are used for mobile ticketing, money transfers, mobile banking and other things. It also made it possible to use mobile sales applications.

Moving your business to a mobile platform makes sense if you want to reach more customers and increase value.

Pros and cons of mcommerce

For an entrepreneur hoping for business development and a steady increase in profits, it is a must to understand what mobile commerce is and how it works. Moreover, it is essential to learn how to use its advantages and what disadvantages to keep in mind.

Advantages of mcommerce

• Extended access. A smartphone or tablet is always with you, and you can shop online anytime, anywhere, if you have access to the network. More than 60% of online purchases are made from mobile devices, and this percentage is increasing every year.
• No restrictions. You don’t need to be connected to the mains, you don’t need to be at home, in the office, you don’t need terminals, cash desks. Everything is on the smartphone, and shopping becomes much easier. What is more, the development of mobile devices made impulse purchases more luckily to happen. The explanation is simple: in a brick-and-mortar store while a person is waiting for the checkout to open or going to the terminal to pay for an order, there is time to think about the purchase. And the opportunity to refuse it. In the case of mobile commerce, the checkout process is quick and there is no time to change the decision.
• Localization. With the help of GPS, the buyer receives information about shops, salons, services located in a particular region. This increases the likelihood of buying goods or ordering services.
• Personalization. Using a smartphone, you can identify its owner. From a business point of view, this is useful for forming a target audience, optimizing the costs of advertising mailings.

Disadvantages of mcommerce

However, considering the question of what is mobile commerce, you need to study the disadvantages of mobile commerce. These include:

• The bandwidth of mobile networks. It is not high enough in all regions. Therefore, in some localities, mobile commerce will not be effective since its components do not work as they should.
• Limited screen size. The technical features of smartphones and tablets do not allow the normal display of sites, resources designed for viewing from a PC, and so far there are most of them. The situation is corrected by mobile app development and mobile-friendly websites building. However, both options require an additional investment of time and money.

Summing Up

Mobile commerce is gradually taking over the global market, from a small ecommerce branch to its large segment. Therefore, entrepreneurs and businessmen focused on the stable development of their companies, need to know what it is.

In an article prepared by NEKLO experts, you can learn more about mcommerce development and its prospects in 2022.