Thanks to
ecommerce, pet owners can now order dog shampoo for their furry companion
without visiting stores and realizing that their preferred brand is out of
stock; a buyer can conveniently browse online stores and move on to another if
they don't find what they're looking for without leaving their home.
This scenario is
just one example of the many advantages of ecommerce, and many product-based businesses have
adapted to meet customer demands.
But when we talk
about ecommerce, the term '"mcommerce" sometimes pops up. Are these
two terms the same? Read this article for an in-depth look at e-commerce and
m-commerce.
What is Ecommerce?
Ecommerce or electronic commerce is almost
synonymous with online shopping, which refers to how companies and individuals
buy and sell products online.
Nearly every
product imaginable can be bought online because many industries have migrated
to these e-commerce channels. Whether it be fashion, beauty, cooking supplies,
car parts, medicines—you name it, there is undoubtedly a store for it.
Another reason
ecommerce is so popular is due mainly to the many variations of transactions
available. There are business-to-business (B2B), business-to-customer (B2C),
customer-to-customer (C2C), customer-to-business (C2B), and the lesser-known customer-to-government
(C2G) transactions.
Although its seen a
recent popularity boost in the past years, the history of ecommerce goes all
the way back to 1994 when the first recorded transaction occurred on a platform
called Netmarket. While that was almost
two decades ago, ecommerce won't be going away anytime soon. According to Statista's figures, ecommerce sales
averaged 4.9 Trillion USD in 2021 and are projected to increase to 7.4 Trillion
in 2025.
Ecommerce businesses are often standalone or additional channels to complement an existing brick-and-mortar store. Using ecommerce as a complement helps reach markets beyond the physical shop's spatial limitations and to lower operational costs.
While an ecommerce
business sounds helpful and great, buyers and sellers are still not fully
protected from cyberattacks and frauds. In some cases, hackers may obtain
customers' credit card information and use it for ill-intentioned reasons.
It's a reason why
customers flock to new channels to buy and sell products.
What is Mcommerce?
Mobile commerce, or
mcommerce, differentiates itself through the mere use of mobile devices, and it
is a considerable subset of ecommerce since transactions are typically
performed via a smartphone. Hence, ecommerce and mcommerce usually cover the
same industries, from retail clothing to insurance.
In the U.S. alone,
mcommerce sales hit $359.32 billion in 2021 and are expected to reach a
whopping $728.28 billion by 2025. These numbers are only increasing as the
dependency on mobile devices ensues.
What are the
Differences between Ecommerce and Mcommerce?
By now, you know
that all mcommerce transactions are ecommerce, but not all ecommerce
transactions are mcommerce. Entrepreneurs must adequately differentiate the two
to understand what will work best for business.
1. Mobility
Ecommerce activities are typically accomplished through desktop computers or laptops, and it may take some time to set up and may not be the best option for on-the-go individuals.
On the other hand,
mcommerce uses mobile devices for people to carry out their transactions
anytime and anywhere they wish as long as they can connect through a local
network or use mobile data.
2. Security
Credit card payment is one of the most common methods in ecommerce. However, there is still mistrust among consumers in providing credit card details on shopping platforms; the prevalence of phishing scams and other cyberattacks makes credit cards somewhat an unreliable option to many.
Mcommerce security
tends to be more thorough. Mcommerce platforms employ e-wallets where users can
easily connect a preferred bank account or "top up" their wallets.
Mobile commerce also uses two-factor and multi-level authentication, biometric
authentication, and increasingly creative security measures.
3. Location Tracking
Since ecommerce thrives on desktops and laptops, security can only go as far as these devices can offer. An IP address is the only way to track a user's location, but it alone can only provide a vague idea of the shopper's whereabouts.
Mcommerce is more precise
in identifying a user's location because of GPS, Wi-Fi, phone number tracking,
and more. Location tracking can be as specific as possible in mcommerce.
4. Way to Omnichannel
Online retail is transitioning from multichannel to omnichannel. Instead of deploying mixed messages to various groups, brands must offer a cohesive purchasing experience, and ecommerce constrains its mobility because it relies heavily on computers.
Mcommerce makes
personalization possible and offers users a tailored buying experience.
Additionally, retailers may quickly respond to customers' wants and make
suggestions, increasing conversion rates.
5. Push Notifications
Push notifications
are less applicable to ecommerce because it only happens when platform owners
ask permission from the visitors.
Mcommerce platforms, on the other hand, immediately send them to a user's mobile device, effectively using push notifications. This way, a user's email can receive fewer spam emails from advertisers.
Merging Ecommerce
and Mcommerce to Maximize Benefits.
Ecommerce and
mcommerce are closely related but not synonymous with each other. Both provide
alternatives to traditional transactions, but each has distinct features and
highlights. As an entrepreneur, it is vital to understand their differences.
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