M-Commerce in E-Commerce: Fundamentals of M-Commerce

Despite its overwhelming undertones in eCommerce, m-commerce often remains in the shadows. In this communiqué, retail and eCommerce consultants - Your Retail Coach (YRC) highlights some of the essential fundamentals of m-commerce with an emphasis on the MENA region.

What is M-Commerce?

M-Commerce (mobile commerce) is nothing but commercial trading taking place between sellers and buyers using mobile devices (mainly smartphones). Online commercial trading (eCommerce) can also take place via other devices like laptops, computers, tablets, or any other smart device with the required capabilities. However, smartphones currently enjoy clout and flex like no other device.

M-Commerce vs ECommerce

ECommerce is a broader term enveloping m-commerce. ECommerce refers to the online channel of distribution of goods and services with its physical counterpart being brick-and-mortar. For example, a fashion brand can have an offline presence in the form of physical showrooms as well as an online storefront. The latter is the eCommerce way of selling. Dark stores and online marketplaces also come under the purview of eCommerce.

Devise-wise, m-commerce is a channel of eCommerce. ECommerce can take place via multiple channels (devices) like smartphones, computers, laptops, tablets, smart TVs, and other smart digital devices. When eCommerce takes place via mobile devices (mainly smartphones), it is more specifically referred to as m-commerce or mobile commerce. Now it is easier to see the strong working relationship between eCommerce and smartphones. Millions of people around the world use their smartphones (via apps) to shop online.

Why/How Smartphones suit M-Commerce

Even going by safe estimations, more than half of the world’s population carries at least one smartphone. That converts to more than 3.5 billion people. In cities like Dubai, Riyadh, Cairo, Abu Dhabi, Muscat, Kuwait City, and Doha, the internet and smartphone penetration rates are already touching the ceiling or are about to. Powered by the internet and software applications, smartphones made possibilities unthinkable before - a reality. At the individual level, it empowered one-to-one and group-based communications. Social media and micro-blogging platforms became an avenue for mass communication. The functionalities of communications and social media apps are at a crossroads today. Smartphones became a medium for brands and businesses to communicate with their customers and vice versa. Storefronts got digital and came to smartphones in the form of software applications. One of the most important requirements for commercial trading to take place – mobile digital payments also came to smartphones. Today, mobile commerce has everything needed for a business to come into existence, operate, and be a successful brand. However, in the coming years, if anymore ‘mobile’ solutions come into the picture that are more effective for m-commerce, smartphones may not remain the favourite device for m-commerce.

Challenges in M-Commerce

Security concerns present one of the biggest hurdles in m-commerce. While news of data breaches and cyber-attacks keeps reappearing in the news, customers in many countries are highly cautious and expect companies to maintain the best cyber security systems. This has led many big companies to invest heavily in building robust systems for fraud prevention in m-commerce in the Middle East and MENA region. For a large number of MSME players, this could prove to be financially burdensome.

Compared to computers or laptops, smartphones have a much smaller display hindering user experience. With a bigger display, more information can be offered enabling a pilot’s eye view. This facility plays a big part in influencing purchase decisions.

Apps are preferred on smartphones than websites. The new generation of customers comprising late millennials and Gen-Z onwards are more accustomed to apps than websites when using their smartphones. Apps are great but they demand higher maintenance than websites.? It is a noticeable feature that apps are updated more frequently than websites. So, despite the advantages of smartphones, mobile apps will always have to compete with websites in the shadow.

As experienced m-commerce consultants, YRC stresses that, for customers, mobility of shopping is one thing, having the desired impact is quite another. No doubt that smartphones are highly mobile but the way smartphones are used also lends it transiency. What is available to see at one go is limited on the display screens of smartphones. If the content is not good enough, users scroll up and the likelihood of a re-look may be gone forever. This is one of the reasons why many people from earlier generations still prefer using bigger screens offered by computers and laptops while completely dropping the idea of shopping from their smartphones.

Also Check Out Q-Commerce

About Your Retail Coach:

Your Retail Coach is a retail & eCommerce consulting house with 10+ years of experience of providing enterprise startup and management solutions.

With a scaling global footmark, including in the Middle East, YRC has served 500+ clients in 25+ verticals with a success ratio of 95%. In m-commerce consulting, YRC offers solutions for enterprise set-up and growth and expansion projects.

For assistance in eCommerce business set-up , management, and growth/expansion or to speak to one of YRC’s eCommerce business consultants for m-commerce solutions for Middle East or MENA region