Innovation in mobile technologies is re-crafting the global business today. The mCommerce ecosystem is at the centre of a disruption that is changing how retailers and consumers engage with one another while online, in-store and via social media. Unfortunately, very few truly understand this emerging model. The massive volume of information and the rapid pace of change are making it difficult for even the most astute companies to stay on top of it all.
2014 was the year that mobile commerce came of age, marked by the launch of Apple Pay in October. While the variety and complexity of mobile devices continues to grow, mCommerce is quiet clearly one of the macro trends for 2015 and beyond. This makes it inevitable for marketers to focus on mobile as a primary channel for business success. Refer our earlier blog on 7 tips for successful m-commerce strategy
In fact, Goldman Sachs predicts that consumer spending via mobile commerce will grow to $626 billion by 2018.
There are many areas into which mobile commerce can be categorized. For now, these are the big six:
- Commerce website accessed via mobile device
- Mobile-optimized/responsive website purchase via device
- Mobile device payment at retail POS
- Mobile app-only purchases (e.g. Uber, Square)
- In-app social media purchases (e.g. Facebook, Twitter)
- Mobile-specific rewards, couponing to drive physical store traffic/transactions
How is mCommerce revolutionizing this space?
The portability of handheld devices helps the user to buy or purchase anywhere.
- Reliability of high speed internet connections with 3G, 4G, and Wi-Fi.
- Time efficient: Mobile phones are mostly switched on and easily accessible.
- Mobile web and native apps provide more touch points for sellers to connect with the consumer, increasing the chance of a transaction.
- With Square, NFC, Google Wallet and Apple Pay, users and consumers have the liberty to transform their mobile into a substitute for wallet.
What are the challenges faced by mCommerce?
Device compatibility is widely stated to be a challenge. The m-web and native apps have to be supported by devices running on different platforms and device specifications.
- Bad internet connectivity and bandwidth limitations might result in failed transactions, known to be higher for mCommerce.
- Size of device screen size might limit design and UX capabilities which makes product discovery difficult.
- Mobile devices cause distraction and reduces conversion rate from product search to purchase.
Where is mCommerce heading in 2015?
Online shopping portals witnessed over 50% of traffic from mobile users in 2014. The traffic from mobile users is expected to reach 70% in 2015. With compatibility, ease of use and accessibility, mCommerce is set to create high impact in 2015.
While eCommerce has simply revolutionized the concept of shopping and has fully disrupted the retail industry, mCommerce has taken this to a whole new level, where buying and transacting via mobile is being driven through gamification elements, playing on buyers psychology.
Srishti Innovative is a pioneer in enabling businesses go mobile. With our state of art mobile and web development services, we help businesses create new revenue channels by rolling out multiple experiences on mobile web, native apps, responsive shopping experiences, building and monetizing ape’s and leveraging hyper local shopping services at the actual point of sale.