This article is about mobile commerce; its history, its uses, and recent news involving it. But first, what is mobile commerce? Mobile commerce is defined as the sale of goods and services via digital means through mobile devices such as mobile phones, tablets, and smart watches over a wireless internet connection.
Mobile commerce fist took form back in 1997, but it was limited only to paying services through text messages. However, in 1999, Japan introduced the first browsing-like mobile applications, such as the iMode. In 2003, the first sales campaign via text messaging was launched by De Bijenkorf, a Dutch department store chain, in which customers could register online and provide their bank account details and delivery address. Mobile commerce offers many advantages to people, from individuals like a buyer and a seller, to businesses both small and large. The number of people owning phones are growing larger and larger which makes mobile commerce more relevant each passing day. One advantage of mobile commerce is its wide reach.
“Mobile commerce allows consumers to do transactions whenever and wherever as long they are connected to the internet.”
This also means that people can do businesses without the need for office spaces as they can do business wherever they are. Another advantage are the applications.
Applications, especially applications that can be personalized, can capture the attention of consumers more easily, as products and services are tailored to the consumers’ personal liking. Mobile commerce also has disadvantages, especially on the retailers’ perspective. One disadvantage would be the smaller screens of mobile devices. Smaller screens would result in a loss of opportunity for a retailer who want to sell products with eye-catching images, which would then fail to capture consumers’ attentions. Another disadvantage would be the fast-paced growing market for mobile commerce. It is too risky to invest in a fast-paced market as it would be volatile, which would make it unpredictable and can hurt your business. Another disadvantage would be the speed of delivery. Mobile devices are less powerful than a PC or a laptop which means that mobile websites need to be optimized to yield the best results. Optimizing mobile websites is a necessity for the retailers because for a consumer, mobile websites are generally cheaper than applications, and optimizing websites cost time and the appropriate manpower.
Security is also a disadvantage as mobile commerce relies on wireless internet connection, and wireless networks are more vulnerable to hacking than the standard ‘internet’.
In recent news, research shows that consumers are less likely to purchase something online if they are using a mobile device. The findings came from a study conducted by the University of East Angelia and published in the Journal of Business Research. According to the data, 46% of global ecommerce traffic came from mobile devices during the second quarter of 2016. However, only 27% of the purchases initiated were completed. The first concern was the smaller screens of mobile devices. Consumers are worried that the smaller screens would hinder them from seeing the full picture. The consumers also thought that the smaller screens would limit them from seeing the special offers or the hidden costs.
“The consumers are also worried about the privacy and security of mobile transactions.”
In a new report, “Digital Payments in the U.S.: Consumer Usage, Wallets andP2P,” the market research firm Packaged Facts showed that there is a rise in the percentage of mobile Internet activity among American adult consumers. It showed that the percentage back in 2017 reached 52%, up about 50% in just four years. Purchase related activity also grew at an average of 28% annually. Packaged Facts also showed that mobile shopping is closing the gap against the overall online shopping. In 2017, 39% of consumers reported making a mobile purchase, up from less than 20% back in 2013.
