What Is M-Commerce? Its Potential for Businesses

Many businesses today apply M Commerce to their business models. However, not every business understands it and puts it to work effectively. So what is M Commerce? Mona Media we invite you to read on to learn about this term and related information in the article below!

What is the concept of M-Commerce?

First, MONA will clarify the term M-Commerce. M Commerce, or Mobile Commerce, refers to doing business on mobile platforms. It is a business model that lets companies or sellers distribute products directly to customers anywhere through wireless devices. The model covers all buying, selling, payment, advertising and delivery of goods between buyer and seller.

With the spread of mobile devices, especially smartphones, M Commerce has become a notable way to do business. It helps sellers interact and connect more closely with customers and improves their shopping experience.

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What are the benefits of M-Commerce?

Now that you know what M Commerce is, MONA will introduce its benefits. Here are the 3 most typical benefits when a business starts using M-Commerce in its online commercial activity:

Collect information about your users

M Commerce plays an important role in giving user data to sellers and brands in general. Through a mobile app, sellers can collect information on users who visit the app and their purchase history. This lets the store analyze and better understand its audience and customer profile in the market.

Based on this data, the store can build product strategies and targeted sales programs more effectively. It can tailor and personalize the shopping experience for each customer, and create attractive promotions and offers based on customers' interests and past buying behavior. In this way, M Commerce makes the brand more appealing, increases engagement with users, and strengthens customer loyalty to the brand.

Improve the shopping experience

Customer experience plays an important role in business success and directly affects a company's revenue. M-Commerce offers a new approach that improves it. Instead of going to a store to buy a product, customers can make every transaction from home on their phone. They can search for and choose the products they like without leaving the house.

Another great advantage of M-Commerce is that customers can browse and buy at any time, anywhere, regardless of when a store opens or closes.

Optimize operating costs

In the past, to reach customers in many areas, businesses had to expand and open stores in many locations. That meant higher staff costs and branch management costs. With M Commerce, a business can serve customers anywhere with just one or two branches or central warehouses in big cities.

Thanks to M Commerce, businesses can shrink their operating footprint and save on branch costs. Instead of expanding physically, they can focus on building an effective online shopping system that customers anywhere can reach and buy from easily. This saves a business considerable operating cost and makes it more competitive in the market.

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M-Commerce vs. E-Commerce

Now that you know the benefits of M-Commerce, MONA will help you tell E-Commerce and M-Commerce apart. Many businesses today are unsure which of the two models to choose for their strategy.

In the past, E-Commerce, or Electronic Commerce, was seen as the top choice for retailers, offering a model for buying, selling and trading products or services over the Internet and computer networks. But now people are shifting to M-Commerce. What is the reason?

E – commerce

• Devices used: Traditional computers (PC), laptops
• Operating system: Specialized in Windows, Linux and Unix
• Used on: Websites
• Ability to locate users precisely: No location capability
• Security level: Relies only on website security
• Payment gateway: Mostly credit cards
• Flexibility: Low, because the machines are heavy and take up a lot of space

M – commerce

• Devices used: Any mobile device such as smartphones, pagers, iPads
• Operating system: Varied, including iOS, Symbian or Android
• Used on: Through apps and mobile websites
• Ability to locate users precisely: Can use location and sharing features
• Security level: Combines website security and smartphone security
• Payment gateway: With 2 platforms: Mobile Banking and credit cards
• Flexibility: High, because devices are small, compact, easy to carry and quick to use

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Industries with M-Commerce potential in Vietnam

According to commerce index reports since 2015, Vietnam has consistently led in growth of mobile phone users and in retail on smart mobile apps. In particular, as of June 2021, nearly 80% of Vietnamese consumers had used online shopping services, and the figure keeps rising.

This growth was pushed further by the Covid-19 pandemic, when prolonged social distancing forced people to change how they spend. More and more people shop and transact online, and the online market offers a wider range of goods and services. It shows a strong shift from traditional shopping to online shopping, and in particular the growth of the M Commerce market in Vietnam.

These are the fields and industries with strong potential for M-Commerce

Online shopping services

The Vietnamese market has many online shopping apps developed by the e-commerce marketplaces such as Tiki, Shopee, Sendo and Lazada. In addition, some F&B brands and retail supermarket chains have also started selling and serving customers through online apps.

Here are some examples of brands and online business systems in Vietnam:

Supermarket chains: Co.op Mart, Big C, 7-Eleven, Winmart, AEON…

Cosmetics: Olay, MAC, Body Shop,…

F&B: Cheese Coffee, Grab Food, Shoppe Food,…

SMS (text messaging) services

The need to communicate and build relationships through online social networks has produced a range of messaging apps worldwide. Each country may have one or more distinctive messaging apps. Here are some examples of popular messaging apps in several countries:

• In the US: Snapchat, Facebook Messenger, WhatsApp
• In China: WeChat, QQ, Weibo
• In South Korea: KakaoTalk, Naver, Line
• In Vietnam: Zalo, Viber, Messenger, Telegram

In Vietnam, users have several choices for messaging apps. Zalo, Viber, Messenger and Telegram are popular apps Vietnamese users use to communicate and build relationships online.

Payment services on digital platforms

Using mobile payment apps, also known as App Mobile online, has become common in Vietnam. There are now more than 20 e-wallets operating and attracting a large number of users, including Momo, ZaloPay, VNPay, Moca and more.

Mobile apps do more than link payments. They also give users many utilities for daily life and entertainment. With these apps, users can book travel, play games, collect vouchers and do many other things. This adds convenience and variety for users of mobile apps.

Ways to implement M-Commerce well

In the age of digitalization and information technology, customer behavior keeps changing and M Commerce is becoming a recommended priority model. However, to run M-Commerce effectively, business owners need to watch some important details. Here are some approaches you can apply when implementing M Commerce for your business:

• Build an online app with a clear, recognizable and easy-to-use interface. Standardizing and building a clear brand identity helps customers navigate and find products quickly.
• Optimize the payment process by offering several payment methods. These include cash on delivery (COD), online payment by credit card or internet banking, and e-wallet integration, so customers have convenient choices when paying.
• Combine multichannel sales: combine M Commerce with other sales channels such as stores or shopping malls. Although M Commerce is encouraged, having a physical store is still important for building customer trust.

That is the information on the topic M Commerce explained. We hope you have learned something new about a digital platform that is widely used today. Don't forget to keep up with new, impressive articles from Mona Media today.

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