Mobile Commerce: Economic, Technological and Social Consideration

Mobile commerce is founded upon the increasing adoption of electronic commerce. The rapid growth of mobile commerce is being driven by a number of positive factors, including the demand for applications from an increasingly mobile consumer base; the rapid adoption of online commerce, thanks to the resolution of security issues; and technological advances that have given wireless handheld devices advanced capabilities and substantial computing power.

M-Commerce benefits for business

Surely, running a mobile app for ecommerce can’t be the sole guarantee of profit. This is a great additional value tool to engage customers and offer experiences. Any amount of investment to make an app, if done wisely, will be justified by loyal customers. Also, check your competition – if they have app, you should probably too.

Now we are going to name main advantages of m-commerce, with few practical examples.

(1) Faster purchases

Yes, many sites have mobile versions, though apps are generally 1.5 times faster when loading data and search results on mobile devices. Moreover, there is no need to pull data from a server and so customers can browse and purchase products faster. As mobile ecommerce apps offer same functionality as desktop apps, people may purchase items directly within an app.

M-commerce revenue has been rising at 30-40% rate annually since 2014, and by the end of 2017 is expected to reach $150b total. The biggest retail app Amazon increased number of customers from 43 million in 2015 to 67 million in 2016. The reason for such achievements is intuitive mobile browsing, which in turn drives sales up.

(2) Better customer experience

Because it matters. People are well familiar with how smartphones and tablets work, so they already know how to navigate to desired products in few clicks. In addition to purchases, customers can share their joy of bought goods with friends, or ask for advice from community of shopaholics. Smooth customer experience equals better conversion rates and revenue.

To reach these goals, your online shopping app should be:

  • Fast
  • Convenient
  • Interactive
  • Exclusive

(3) Direct connection to customers (push notifications)

Shoppers get such alerts when they open a mobile app, and may get them even without activating an app. 50% of users like notifications, and 80% of users say offers and rewards make them more loyal to a brand. This is personal communication, if you look at it from another angle, store to customer directly. Most of people perceive informing about news or discounts as care, and they want exclusive stuff.

(4) Deeper analytics

Knowing your customers equals prosperity in business these days. Knowing customers demands data, at least very basic information like age, sex, location, shopping history. Within your mobile app you may build and set user analytics of various levels of sophistication. It depends on your business strategy and a budget available to make an app.

With such data you will understand your target audience much better, and will be able to increase sales. Names, phone numbers, emails, buying patterns and lots of other things in store. For instance, Walmart app that 22 million customers use every month, uses mobile data, online data and sales data combined to deliver better customer experience. It is a whole and enormous infrastructure.

(5) Cost reduction and productivity

By reaching your audience faster with a mobile app you obviously cut down marketing campaign costs. If an app has social media integration, users will do their part too in spreading the word. You can even earn from placing ads within your app later on.

(6) Store navigation/geolocation

Mobile apps have a much better competitive (technical) in regard to marketing opportunities. Front and back camera, scanning codes, positioning system for location, compass, accelerometer, gyroscope and other build-in features can be used for commercial purposes. One of the top benefits of m-commerce solutions is navigating users to nearest stores in their vicinity via GPS.


  • Convenience: With just a few clicks on mobile devices, customers can already do shopping, banking, download media files…and more than that. M-commerce also benefits retailers by many of their outstanding features compared with responsive website and mobile site.
  • Flexible Accessibility: User can be accessible via mobile devices and at the same time be accessible online too through logging on to various mobile messengers and other networking platforms. On the other hand, the user may also choose not to be accessible by shutting down his mobile device, which at times can be a good thing.
  • Easy Connectivity: As long as the network signal is available, mobile devices can connect and do commerce transactions not only mobile to mobile but also mobile to other devices. No need for modem or WI-FI connectivity set up.
  • Personalization: Each mobile device is usually dedicated to a specific user so that it is personal. Users can do whatever they want with their handheld devices: modify the wallpaper, change view settings or modify contact information as you send emails or e-payments.
  • Time Efficient: Doing M-Commerce transactions do not require the users to plug anything like personal computer or wait for the laptop to load.

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