The Influence of Mobile Commerce in Retail Industry

Nandakumar | August 14 - 2014

Study reveals that mobile commerce will account for 30% of global retail e-commerce spending by 2018, up from 15% in 2013. People’s attitude for purchasing has changed with newer facilities like mobile shopping. It creates an environment of convenience where user can simply buy using their mobile and shop from anywhere. Even the prices are also very competitive. Sites like Amazon provides products with prices 30% less than the store. Some of the other interesting features of mobile commerce that makes it unique among the buyers are discussed below.

1. Mobile Payment

Mobile shopping allows the user to pay via mobile using bar code scanner. This avoids the necessity to carry the credit cards to the shop. Infact shops are on the mobile front. Users can browse the site through mobile and pay for it through e-wallet or cards or Paypal. Direct money transfer from the smartphones are possible with the advancement in mobile commerce. It is estimated that alternative payments (Paypal, Alipay, Skrill etc) accounts for 43% in 2012 which is expected to rise by 59% in 2017.

2. Access personal data

The mobile commerce collects the information about the customers and stores them. It collects information like where the customer buys the products often, what kind of products they like, etc. These information can be useful to send customized messages about availability of products, offers, discounts etc.

3. Targeted offers

The shops can send targeted offers to the mobile which may influence the buying pattern of the customer. An offer sale on suiting at near by place can be flashed on the mobile. Location based offers can be promoted which provides special discount for its regular customer in particular area. Tempting the customers to visit the shop to avail offers can be easily motivated by mobile commerce.

4. Compare pricing

One of the best advantage for the mobile commerce customers is that information is open and they can compare the best prices online before making a purchase. This is the best option that is loved by the customers since buying is transparent. People get best value for the money. They can search for the products in different stores using the mobile front before making a purchase. The information gathering is also quick since the stores are online.

5. Emails on mobile

Mobile responsive emails have become very common which helps to promote the products to the customers quite easily. Majority or more than 50% of customers have clicked the website link in the emails to visit the site through mobiles. Mobile optimized landing pages can be the best way for promoting the mobile commerce.

6. Elevating mobile transaction

Currently, the trend of buying through mobile is greatly increasing. People tend to enjoy the comfort level of shopping via mobile. Not only for shopping , mobiles are used for booking train/bus tickets, tickets for cinema, pay bills, money transfer, etc. More and more mobile transaction has led to development of mobile commerce.

7. Entertainment

Downloading games apps, music, and movie are commonly done these days through the mobile. Some of the paid services are also enjoyed by the customer by making mobile online payment. People are using the services like games download by making payment online with least technical knowledge as all the process is taken care easily by the application.

8. Building customer relationship

The customer loyalty can be easily utilized by the customers since the customer information are available in real-time. People can enjoy the loyalty through the mobile without any need to carry loyalty cards or other plastic cards to the stores. The near field communication (NFC) is very much useful for implementing the loyalty. The user simply waves the phone near the scanner and the transaction is completed to update loyalty points or invoke other services.

There are multiple advantages for using the mobile commerce. The products are available at most competitive pricing with lots of variety to choose. One can surf the site at one’s leisure time and buy the products by paying via mobile. Retailers provide multiple offers on the mobile site. The smartphones have become the next alternative for the retailers to sell products effectively to the customer at extra no cost.