In the present world, Mobile commerce plays a vital role and had a major improvement in the year 2015. It is nothing but buying and selling of products or services using a Smartphone. The m-commerce sales in the US have been doubled recently.
Smartphones have become highly essential for the in store purchase which accounts for more than eighty percent of sales during the holiday period. Some of the m-commerce applications are Information Services, Personalization Services, Imaging and also Entertainment (like games and gambling etc.)
The m-commerce has achieved its peak for integrated mobile devices, ultra modern mobile applications and geographic-oriented applications etc. The people use apps or website to access various services such as store maps, shopping lists, mobile payments and to research products and prices.
Smartphones will succeed desktop in online traffic to retail the websites and applications. While using devices such as Smartphones can be disappointing when filling in forms, checking a product or service. Mobile interactions are cracking the merchants.
The mobile exposure is improving a lot but the consumer’s expectations are outpacing the merchant’s ability to deliver it. The large retailers have made bigger profits for their mobile sites and applications but the smaller online retailers have not achieved it.
The transition is doomed as consumers spend most of their time on mobile phones. There is a drastic shortfall in the number of consumers visiting the physical store (E.g. Brick and Mortar stores) and malls because of the increase in online shopping.
Several Stages of M-Commerce:
The three distinct stages of M-Commerce are given below.
- Mobile banking and Accounts: It is the minimum requirement moving forward and likely the first to see the implementation. We can also say that this is the delivery of basic account information.
- Mobile Payments: This distinct area refers to the ability to use information stored on the handset to conduct valid, secure and real-time transactions.
- Mobile marketing: This one refers to leveraging the knowledge of customers and it assures for the immediate delivery in marketing.
The enabling and overlapping technologies affect all three of these areas. In many cases, technology developments and consumer practices that start in one area are the necessary foundations for spreading adoption and growth in other areas. The deployment of truly secure mobile commerce solutions that deliver real time account information, secure payment options and the ability to deliver dynamic and targeted marketing requires cooperation and partnering on a higher scale. The present generation consumers are not going to be satisfied with the limited options, conflicting systems, and opportunistic financial models and unlikely to embrace the proprietary systems.
Stimulation of Smartphones:
The users of the mobile phones can seek data; can compare multiple shops and purchase goods and services. A recent survey says that mobile online traffic to the retail websites has reached around fifty percent in March 2015, from around thirty percent in March 2013. In addition to that, mobile sales have approached nearly twenty five percent as of the March 2015, almost double the rate in March 2013.
About one third of the folks uses mobile exclusively and more than half consider mobile the most important criteria in the purchase decision process. About half of the buyers want to receive real-time advancements while they are in store, but only five percent of the dealers have this capacity.
Elaboration of Technological Assets:
At the beginning of the era, the merchants were very slow but now their speed has been increased at a higher rate. Their objective is to expand their application utility by using the latest technologies of the mobile and to improvise their functionality.
Because of the integrated store maps, loyalty programs, wish lists and guaranteed lowest price match policies are the major reasons for the customer’s involvement and usage of the retail application usage.
Their major target is to influence mobile technology by creating a smarter, more convenient and inspiring in store by adding more beacons of its location in a nationwide manner.
If the user’s feedback is positive then the functionality will be sorted dynamically; based on the user’s location, in door re-routing maps and the ability to request service directly from their smartphones. Beacons are small devices placed throughout the store that transmit signals via the Bluetooth. These signals can be detected by the Smartphone apps.
In addition, beacons are expected to directly influence over four billion dollars worth of U.S retail sales by the year 2016. In future, eighty four percent of banks and retailers have planned to invest in mobile technology and the in-store mobile payments are expected to triple in the U.S.
By the year 2020, mobile payments are projected to hit about four hundred and eighty seven billion dollar. According to the foster research, investments in mobile marketing are expected to grow at a compound annual growth rate of thirty eight percent, reaching nearly eight billion in the future.
Mobile Commerce- At the level of Breath-Taking Speed:
Many industries and organizations (like financial Service Organization) are excited about mobile commerce in the abrupt size of the opportunity. There are currently over three billion mobiles in use worldwide. This is obviously greater than the number of active credit/debit cards. As the consumers adopt multiple connected devices, the number of mobiles will actually exceed the population. The m-commerce initiates that they can accommodate and streamline the existing credit/ debit card systems, but also reach entirely new markets in entirely new ways.
Amazon- a Depth Charge:
Amazon recruited more shoppers and it as achieved a sales record during the festival seasons especially during Christmas. A recent survey says that more than three million people signed up during the Christmas week alone. In total, Amazon said it shipped more than one billion items for the holiday season, hence it is the largest-ever season for sales. The company says that nearly three fourth of the customers shopped on a mobile device for the holiday season.
According to the Survey:
E-Marketer expects that the US retail m-commerce sales will reach around one hundred and twenty four billion dollars within 2016, a forty percent increase over 2015 and more than double the amount in the year 2014. As a result of this rapid growth, m-commerce will account for just under one third of retail e-commerce sales and about three percent of total retail within this year.
By 2020, Smartphones will capture nearly one hundred and thirty billion dollars of all retail m-commerce outlays in the US, a growth rate of nearly nineteen percent. The consumers are willing to purchase on mobile increase a lot, where the share of transactions taking place on the mobile phone has doubled since the year 2014.
Tablets maintain the majority of m-commerce sales nearly fifty one percent within the year 2016. But these tablet devices will not be fast enough to keep up with Smartphone growth. By the end of 2017, the Smartphones will account for half of the retail m-commerce sales, exceeding that of tablets for the first time.
By the year 2020, the tablet commerce sales will hit the ratio and exceed hundred billion dollar in 2020. Mobile phones play an important role both online and in-store hitting a ratio of about four percent sales growth.
Author Bio :
Smith Felix is a senior copywriter in Dectar, a best PHP script developer in India which provides mobile app services for the past 3 years. He is also an expert in digital marketing & Dectar Apps who writes articles on the latest topics covering valuable information on cloning scripts.