Gradually, M-Commerce is gaining a strong foothold in the retail industry. It is posing a serious threat to the E-Commerce business. According to Statistics, with more than 50% of total online orders coming from mobile, there is no scope of doubt that by the end of 2015 E-Commerce will meet its tragic end.
The various factors responsible are:
- Architecture: India is basically a mobile dependent country in primary level. It does not have the infrastructure to serve billion laptops, but it is trying its level best to serve data to billions of mobile phones. Not many people can afford a laptop or even a desktop. But now a days, almost everyone from all income group has mobile. It is the only connected device for consumers living in small cities and towns and even in rural areas.
- Economical: With the Android wave hitting India, even people with low income can now afford a smartphone, which is used as an internet modem. According to a survey 65% of internet users are e-commerce clients.
- Approach: Big brands and names in retail business have not made their presence felt in small cities and towns of India. So for the youngsters living in these cities, the only option remains is to access either the internet through computers or mobile phones. But computers there are few in number. So, mobile is one step ahead here.
- Imbursement method: The system of “ cash–on delivery” has worked well for E- Commerce market, and now M- Commerce market in India. Credit cards is not very popular in every household in India, especially in rural areas and small cities. But with this mechanism of “ cash-on delivery”, the E-Commerce and M-Commerce market has gained popularity and momentum among the masses.
It is for these reasons, that India has become a very large M-Commerce market second only to China.
Flexibility in M-Commerce, or why is M- Commerce becoming so popular?
Mobile shoppers are very demanding and impulsive. They normally do not want to give much time for a page to load. Every delay costs a loss of about 7% customer. To put it simple, mobile shoppers are very hard to please. The methods adopted by a company to lure its customers is called “Adopting Mobile.” Listed below are the ways in which merchants can adopt mobile.
- Quick page downloads: Web visitors are very particular about the page load time. A small delay in loading a page can have a bad impression on a customer.
- Customer friendly Device: The main driving force behind growth of mobile shopping/transaction is the customer. A customer expects everything to be ready with one tab. It reflects badly on the band if they haven’t yet developed this mechanism.
- Exclusive mobile sites and apps: Online retailers can tap this mechanism/device to boost their sales. A well designed and thought out device and app can work wonders for them.
The main agenda of the online retailers is to develop advanced mobile software to attract customers and earn profit.