The Future of MCommerce: Insights for Business Startups
More businesses across various industries are investing in the future of mcommerce. This article will dive into the top mcommerce trends, benefits, and practices.
If you recently spent money on an in-app purchase, you’re contributing to one of the biggest e-commerce and mobile trends within the retail industry.
Mobile commerce, or more widely known as mcommerce, is the use of handheld devices like phones or tablets to conduct commercial transactions online.
For startups unsure of where to begin when it comes to their journey into the world of mccommerce, this guide will showcase the major components of the industry.
Types of MCommerce
The mcommerce industry is growing, but there are three major staples of the industry:
- Mobile shopping
- Mobile banking
- Mobile payments
Mobile shopping is now readily available through dedicated apps, social media platforms, and mobile-optimized websites.
Nearly 80% of smartphone users have made a purchase using their mobile device in the past year.
With this trend on the rise, businesses are thinking strategically about how to market their services through apps to drive sales and brand familiarity.
Stitch Fix, a clothing brand, is an online platform that helps buyers pick outfits they love without entering a store.
Users take a simple style quiz before selecting curated pieces within their fit and price range.
As mobile shopping sets out to give a personalized experience to consumers, expect growth in mobile shopping over time.
If you are using a banking app to check your balance nonstop, you’re well ingrained in the world of mcommerce.
Most mobile banking apps allow users to make transactions, deposits, and transfers. Over the years, mobile banking apps have gotten more innovative and personalized.
Users can schedule meetings virtually with representatives or use chatbots to get their money questions answered.
Mobile payments are an industry within an industry. Types of mobile payments include:
- Mobile or digital wallets
- Carrier payments
- Contactless mobile payments
- Money transfers
Digital wallets, in particular, make it easier for online shoppers to store their important information. With one click on a button, users can buy plane tickets, a subscription service, or a new pair of shoes without having to log in all of their credit card information.
Contactless mobile payments still involve going into the store, but users can use Apple Pay or Google Pay to make purchases without searching in their physical wallet.
Benefits of MCommerce
With each mcommerce type, there is a benefit to the service:
- Customer experience
- Business growth potential
- Variety of payment options
The future of mcommerce is leading to even more convenience for customers. All without having to step away from their phone, customers can see a wide variety of products and compare prices across various outlets.
Retailers like Sephora are using specialized features including augmented reality and chatbots within their mobile apps.
Fans of makeup can upload a picture and try on different shades and styles from their mobile device. This gives them a feel for what they like before purchasing.
Faster checkouts are also a benefit of shopping mcommerce, which benefits customers who don’t have to wait in line and vendors who may see immediate conversion.
Business Growth Potential
It is expected that by the end of 2021 that nearly 54% of e-commerce retail sales will be through mobile commerce purchases.
With more than half of American consumers shopping online through mobile devices, it is key for businesses in those industries to get ahead by crafting a seamless mcommerce experience through their apps.
Variety of Payment Options
We have yet to move beyond cash and credit cards as a society, but the future of mcommerce has opened the door to more payment options.
This benefits businesses and consumers through providing more opportunities for spending. Companies are able to find more outlets to make money while customers have the flexibility to choose which payment method to use. That particular side of customer service will encourage customers to keep coming back.
Factors to Consider for MCommerce
There are some hurdles businesses still have when it comes to mcommerce.
Businesses should consider some of the following factors before deciding to focus on mcommerce.
- Need for optimization and adaptability: when it comes to managing a mobile shop, businesses need to be aware of new technical advancements within the industry like mobile retargeting efforts and other best practices. It is important to be informed in order to stay ahead of competitors. If a company isn’t aware, it will lead to them getting left behind.
- Wider regulations: when it comes to managing a mobile shop, companies should be aware of tax laws and other regulations that could prevent your store from taking off. Research your industry and different global markets if you want your business to expand.
If your company wants to venture into the world of mcommerce, it is key that your team researches and prepares for the journey.
Understand How MCommerce Can Help Your Business
As the future of mcommerce continues to expand into various industries, all startups with a mobile app should be able to follow along the way. Businesses should take advantage of the growth of internet use and mcommerce by implementing a system that meets customer expectations.
The pros of embracing a mobile culture outweigh the risks and disadvantages. Startups with the right bandwidth should invest in the future of mcommerce to compete with other companies in similar markets.