eCommerce and mCommerce: [Key Differences & Importance]
During the pre-internet era, no one would have ever imagined the possibility of purchasing any kind of good outside of their typical brick-and-mortar stores. Up until 42 years ago, Michael Aldrich’s odd teleshopping invention in the UK set the stage for future internet shopping by modifying and attaching a regular TV to hardware over a phone line to handle incoming transactions and messages.
The evolution of eCommerce platforms as a whole, which continues to become more inventive and secure, was spurred on by that very same system. And less than 20 years later, mCommerce entered the picture as an essential division of electronic commerce and its legitimate heir. Since then, the eCommerce vs mCommerce discussions and comparisons have become never-ending.
Simply put, eCommerce refers to the practice of buying and selling where the transaction takes place digitally over the internet. Whereas mobile commerce or mCommerce is a subcategory of e-commerce; however, the transaction takes place using mobile devices such as a smartphone.
Before we get into the difference between E-commerce vs M-commerce, let’s explore both of these concepts in detail:
What is eCommerce?
Also known as electronic commerce or internet commerce, eCommerce is the buying and selling of goods and services over the internet, as well as the transfer of money and information to complete the transactions.
Electronic commerce is classified into several types based on the type of merchandise sold, the type of seller, and the type of buyer.
Business-to-customer (B2C): the most popular and extensive type of e-commerce. It is often the first thing that comes to mind when thinking of online retail. B2C occurs between a business and a consumer. For example, buying furniture from an online retailer.
Business-to-business (B2B): refers to a company marketing a product/service to another company, such as a manufacturer and a wholesaler, or a merchant and a retailer. Business-to-business transactions are not customer-facing and typically include goods such as raw materials.
Consumer-to-consumer (C2C): it is the sale of a commodity or service to another customer. These sales take place in stages, such as eBay, Etsy, Fiver, and so on.
Consumer-to-business (C2B): when a person sells their services or goods to a business group, this is referred to as C2B. It includes influencers giving exposure, artists, consultants, independent writers, etc.
Direct-to-consumer (D2C): the latest eCommerce model. It includes brand marketing directly to the end consumer rather than through a retailer, distributor, or merchant. Agreements are a popular D2C item, as is group selling through apps like Instagram, Facebook, and Snapchat.
eCommerce presents a simpler, faster, less time absorbing, and more convenient way to buy and sell for both businesses and purchasers. In short, the advantages of e-commerce are quite many. Hire a professional eCommerce development company to leverage all of those benefits for your business.
What is mCommerce?
Mobile commerce or mCommerce refers to a purchase completed via a smartphone device including a mobile phone, tablet, portable smartphone watch, or any wireless device capable of making purchases fit into this category.
According to statistics, mCommerce sales in the US exceeded 360 billion dollars in 2021. And by 2025, it is expected to grow almost twofold—approximately 710 billion dollars. As a result of this growing popularity of smartphones and mobile apps, mCommerce has quickly emerged to replace electronic commerce as the most convenient way to purchase products and services.
Moreover, the mCommerce apps have presented countless opportunities for those unable to visit a physical store and for getting hands-on rare products online from anywhere around the world and at any time. It has facilitated the growth of brand-new businesses and services, as well as improved existing ones to expand in new directions. Examples of such modifications include:
- Mobile banking
- Wireless boarding passes and tickets
- Digital purchases
- Money transfers, contactless payments, and in-app repayments
- Location-premised services
- Mobile shopping such as loyalty cards, coupons, and much more
Mobile phones are now everywhere. Businesses that can figure out how to take advantage of this will benefit greatly over the next few years. Not sure how and where to start? Get hands-on all-in-one mCommerce solutions right away.
Examples of eCommerce and mCommerce
We all have shopped online for something at some point. It goes without saying that eCommerce is everywhere. Some popular examples of eCommerce include Amazon (the behemoth in the eCommerce space), Flipkart, Quikr, OLX, Shopify, and many more to name. Global retail e-commerce sales equaled $4.9 trillion in 2021. Besides, this figure is expected to increase by 50% over the next four years, reaching approximately $7.4 trillion by 2025.
Mobile commerce is a huge step up from the previous ability to purchase and sell goods using only computers and laptops. Common examples include mobile banking like Paytm, and in-app purchasing Amazon mobile app.
Key Differences Between eCommerce and mCommerce
eCommerce and mobile commerce both aim to buy and sell things using the internet, but there are numerous obvious differences between the two. Let’s look at them:
In eCommerce, shopping is done via the internet. Usually, such activities are done with the help of laptops and desktop computers. Keeping this in mind, users have to look for a place to do their transactions which is quite time-consuming and uncomfortable while on the move.
On the flip side, mCommerce entails using mobile devices. Therefore, users may do business wherever they are as long as they have access to the internet on their smartphones and can complete transactions with a few clicks on the screen.
2. Push Notification
Push notifications are the easiest way to reach and communicate with your audience effectively. It is a crucial part of mobile app-based businesses. They are not a stand-alone solution, yet help in driving sales instantly by retargeting lost buyers. mCommerce apps allow personalizing push notifications for their customers, reaching thousands of people in an instant.
Alternatively, eCommerce sites enable web push notifications that are small message alerts displayed on a visitor’s desktop when they have their web browser open.
3. Location Tracking
Due to the immobility of devices, eCommerce’s capacity to track locations is constrained. However, mCommerce apps may track and identify user whereabouts with the aid of GPS, Wi-Fi, and other technologies. Consequently, mCommerce apps also offer location-specific content and customized recommendations. For instance, notifications can enable neighborhood companies to offer tailored discounts that are targeted at certain clients in a specific area.
Security is the most important part of online transactions. In eCommerce, paying via credit cards is the most common method. However, consumers are doubtful about providing their personal information and credit card number over the internet. As a result, it’s a challenge for eCommerce.
In the case of mCommerce, there is an ample range of security capabilities. Along with regular security measures such as two-factor and multi-level authentication present in eCommerce, mCommerce can offer biometric authentication via face ID, fingerprints, etc.
Due to the portability of mobile devices, mobile commerce’s reach is far wider than that of electronic commerce. As a result, retailers can reach their targeted customers regardless of their whereabouts. This allows getting the most out of mobile commerce because of its wider audience reach. On the contrary, eCommerce has a limited audience reach because of the non-portability of devices.
6. Variety of Payment Options
mCommerce offers a variety of mobile payment solutions for users’ ease. This doesn’t imply that we’ve moved past the traditional cash or card, but today, mobile commerce has given us a mobile wallet feature with which users can make transactions with just one click. For instance, one-click checkouts are possible in more than one store. Some common mobile payment solutions include Amazon Pay, PayPal One-Touch, Apple Pay, etc.
Importance of eCommerce and mCommerce
To compete in today’s digital world, having an online buy and sell platform is a necessity. Thus, more and more businesses are looking forward to offering a simplified experience for ensuring more sales and more loyalty. And, the best way to do this is by creating an eCommerce platform. Besides, building a viable eCommerce site that is also optimized for mobile commerce is the key to business success.
eCommerce and mCommerce have both proven to be valuable and come under the umbrella term digital commerce. Both offer speed, versatility, and convenience that is not possible with face-to-face transactions.
Customers genuinely appreciate being able to choose products, place orders, or keep track of their delivery status from any location. The explosion of digital commerce doesn’t come as a surprise given the growing need of consumers for ease and speed.
Additionally, while mCommerce keeps expanding, eCommerce is staying put. It has been around for two decades and is demanded to produce tens of billions of web-based sales globally.
How eCommerce and mCommerce Can Improve a Business?
eCommerce vs. mCommerce is typically the topic of discussion when it comes to ways to facilitate trade. Both potentially simplify your business processes. Such as:
- In comparison to a brick-and-mortar store, it is easier to manage websites and a variety of available mobile apps
- Better customer insights through marketing data on the role of customers, buying models, abandonment pricing, conversion prices, etc.
- A business that employs mobile commerce recognizes that user preferences are always evolving and can therefore provide outcomes that are specifically tailored
- Fewer inventory issues since available products may be viewed in-line through real-time synchronization
- Utilizing various social media platforms to spread information, make announcements, promote sales, and increase the number of customers
The Future of eCommerce and mCommerce
Keeping the growing influence of technology in mind, let’s look at the big picture of what the future with eCommerce and mCommerce could turn out like:
- Faster delivery via drone assistance
- Reach far-stretched geographic locations
- Same-day shipment with digitalization in logistics
- VR and AR features for providing users with better purchasing choices
- Effective data analytics devices for enhanced customer experience
- AI chatbots support
It’s pretty obvious that eCommerce and mCommerce are not going anywhere anytime soon. Besides, the future of businesses with both technologies is unquestionably bright. If you haven’t already, now is the time to contact an eCommerce website development company and get started with it!
The Final Word
On a final note, it’s safe to say that the eCommerce industry is still evolving. Besides, the increasing usage of mobile devices has led to a rapid increase in mCommerce as well. From the ease of access to fast transactions, insightful data analytics, and higher productivity—the benefits are unlimited!
What is m-commerce and e-commerce explain with an example.
A: eCommerce (electronic commerce) is the buying and selling of goods and services, as well as the transmission of funds or data, via an electronic network, most particularly the internet. For example, Amazon, Flipkart, etc. Besides, mCommerce is a type of eCommerce that allows users to access online shopping platforms using a mobile device, without the need for a desktop computer. In-app purchases, mobile banking, virtual marketplace apps like the Amazon mobile app, or a digital wallet like Apple Pay, Android Pay, or Samsung Pay are examples of mCommerce.
How m-commerce is more useful in e-commerce?
A: mCommerce is an advancement of eCommerce, allowing users to buy/sell regardless of their locations by simply using a mobile device. mCommerce lets businesses reach out to their target audience directly through a mobile app. This way, they can cut their marketing campaign cost. Also, easily spread the word about their brand by integrating the app with social media platforms.
What is the scope of m-commerce?
A: mCommerce allows online shopping on the go using handheld mobile devices. In an age when customers expect more from the businesses with which they interact, providing a seamless customer experience is critical. Besides, mobile optimization is quickly becoming the new industry standard. To keep up with the growing demand, mCommerce is presenting plenty of opportunities for businesses including AI chatbots, machine learning, etc.
What is the advantage of e-commerce and m-commerce in our daily life?
A: There are several reasons why online shopping is the new norm. From convenience, price comparisons, no crowd, no need for physical travel, less time purchasing, to faster consumption—the benefits of both eCommerce and mCommerce in our day-to-day lives are many.