M-commerce is commercial transactions conducted electronically by mobile phone. There are a variety of transactions that may include; mobile shopping, mobile banking, and mobile payments.
The applications are normally fast, they include analytics, social media login and social product sharing, seamless experiences, featured product display and advanced search and filter options.
Pros of M-Commerce
- It is found everywhere
M-commerce is not only found in urban centers but it is also found in rural areas hence it can serve people everywhere.
- It offers platforms that encourage impulse buying
Those people using the services of M-commerce can do impulse buying and this promotes the business of a commodity hence most businessmen prefer using m-commerce.
- Easy to convince customers
When using M-commerce, it is easy to convince customers to buy the product once the seller knows that the customer was interested in buying the product.
- Offers a platform for large order processing
The customers may place a large order for the goods on the platform and this makes the seller process more goods hence making a lot of sales.
- It allows scaling of business quickly
When you have an e-commerce platform it is easy for the seller to advertise the products hence making the people aware of the products in the market which will, in turn, improve the sales.
- Easier inventory management
The business person can easily work with the order of the goods not producing more than it is needed hence not running at a loss.
- It creates more access to user data
The mobile data contact future customers easily as compared to face-to-face selling of the goods hence the business people can make a lot of sales through using these applications.
- Creation of global customer base
There are always potential customers for m-commerce so long as the person owns a cell phone and has internet.
It is a convenient way of interacting with a customer as the intended customer will get the required information about the product without having to make journeys hence it is convenient for both customers and the business person.
Cons of M-Commerce
- It requires an application or website for it to run
M-commerce needs an application or website for it to run and this may be costly and complicated to install and use hence rendering it not an effective means of doing business.
- It has a lot of high competition
With the growing technology, it has become a highly competitive means of doing business hence the business person has to be creative for him or her to make sales on this platform.
- The services must be fast all the time
This may be hindered when the business person is in an area where there is no network or internet hence the business may be delayed.
- It requires technology
The m-commerce needs technology for it to be effective hence the business person must be equipped with knowledge for him or her to use the service.
- No face-to-face contact
The business person while making negotiations cannot be face-to-face with the buyer hence there is no immediate feedback from the customer.
- Needs faith in the product
The business person must have faith in the product for him or her to win the faith of the customers.
- The business person has to ship products to the consumers
The business person has to meet the cost of shipping the product for the consumers once the order has been placed.
- Limited to smartphones
The customer has to have a smartphone for him or her to install the application hence it limits only those who have smartphones to use the service.
- Risk of fraud
There is a risk of fraud in using the service as the customer may not receive the goods that he or she ordered.
- Connectivity problems
There may be a problem of network connections hence not making it possible to reach other intended customers limiting the number of people using the service.
Before using m-commerce the person using the service has to consider the availability of the internet as mobile phones work where there is the internet. Though with modern technology most people are opting for the service as it is convenient for them.