E-Commerce & M-Commerce Explained

Summary

This video explains the concepts of E-commerce and M-commerce, exploring their advantages and disadvantages for businesses. E-commerce, which involves buying and selling goods electronically, has revolutionized retail by offering global reach, lower costs, and 24/7 accessibility. However, it also faces challenges like competition and technical issues. M-commerce, a subset of E-commerce focusing on mobile devices, offers even greater convenience, with seamless shopping experiences and direct communication with customers through apps. Despite some barriers, both models are set to grow significantly in the future, reshaping how businesses operate and engage with consumers.

Takeaways

• 😀 E-commerce is the buying and selling of goods online, conducted over devices like computers, smartphones, and tablets, with the potential for future integration with other smart devices.
• 😀 In 2020, global e-commerce sales reached $4.2 trillion and are estimated to grow to $6.3 trillion by 2024, although e-commerce still accounts for only 19% of retail sales in the UK.
• 😀 Some major brands like Amazon, Gymshark, and Boohoo operate solely on an e-commerce basis, while many other companies use e-commerce alongside physical stores.
• 😀 Advantages of e-commerce include lower overhead costs, global reach, 24/7 availability, and multiple payment options, making it easier for businesses to operate and for customers to purchase.
• 😀 E-commerce allows businesses to access a much larger customer base, compared to physical stores which are limited to local regions.
• 😀 Disadvantages of e-commerce include increased competition, the need for specialized employees, technical issues like site maintenance or security breaches, and delivery wait times for physical products.
• 😀 M-commerce is a subset of e-commerce that specifically involves mobile devices such as smartphones and tablets, benefiting from the rise of mobile technology and apps.
• 😀 M-commerce's advantages include convenience for busy customers, easy integration with marketing campaigns, and the ability to quickly make purchases through mobile apps with features like fingerprint or Face ID.
• 😀 M-commerce also integrates well with physical retail outlets by offering features like loyalty cards, QR code scanning, and mobile checkout options.
• 😀 Disadvantages of M-commerce include technological literacy barriers for some users, security concerns when purchasing outside secure Wi-Fi networks, and intense competition from other mobile businesses.
• 😀 As e-commerce and M-commerce continue to grow, they are expected to overtake traditional retail sales, highlighting the importance of adapting to digital business models in the near future.

Q & A

What is E-Commerce?

E-Commerce stands for Electronic Commerce, which is a business model where goods and services are bought and sold through electronic means over the internet. It can be done on various devices like computers, tablets, and smartphones.

How does E-Commerce benefit small businesses?

E-Commerce can reduce overhead costs for small businesses, allowing them to operate with lower upfront investments. This includes the use of platforms like Shopify, which lowers costs for setting up an online store, and drop shipping, which removes the need for product storage.

How has E-Commerce changed consumer shopping behavior?

E-Commerce has shifted shopping habits by allowing consumers to shop online at any time and from anywhere, making shopping more convenient and expanding a business's potential customer base globally.

What are some advantages of E-Commerce for businesses?

Advantages of E-Commerce include reduced overhead costs, access to a global market, 24/7 availability for sales, multiple payment options, and a smoother purchasing process that increases conversion rates.

What are some disadvantages of E-Commerce?

E-Commerce has its drawbacks, including increased competition, the need for employees skilled in operating online platforms, potential website downtime or hacks, and delays in product delivery, which may inconvenience customers.

What is M-Commerce and how is it different from E-Commerce?

M-Commerce, or mobile commerce, is a subset of E-Commerce, specifically conducted on mobile devices like smartphones or tablets. It is designed for convenience, allowing consumers to make purchases through mobile apps and social media platforms.

What factors have contributed to the rise of M-Commerce?

The rise of M-Commerce is attributed to the widespread use of smartphones, the development of mobile applications, improved security features, and the integration of shopping functionalities on platforms like Facebook, Instagram, and TikTok.

What are some advantages of M-Commerce?

M-Commerce offers several advantages, including the ability for customers to shop anytime and anywhere, seamless integration of marketing and sales through social media, and personalized communication with customers through notifications and apps.

What are the disadvantages of M-Commerce?

M-Commerce has disadvantages, such as requiring technological literacy, security concerns, high competition, and the need for mobile apps or responsive websites. These factors can potentially limit accessibility for some customers and increase the risk of losing sales if the user experience is poor.

How is M-Commerce integrated with traditional retail stores?

M-Commerce complements traditional retail by offering features such as loyalty cards, QR code scanning for access to online content or rewards, and the ability to checkout via mobile apps, bridging the gap between physical and digital shopping.