mCommerce and eCommerce: Which One Should You Choose?
Which one should you choose when starting an online business?
Retailers, large and small, are constantly figuring out which business model will bring them more success. Today, this game has evolved into the battle between Electronic Commerce (eCommerce) and Mobile Commerce (mCommerce) — two distinct business models constantly vying for the same customers’ attention and dollars.
But how exactly do these two terms differ from one another? What are the pros and cons of each? Which one should you choose when starting an online business? Let’s find out by taking a closer look at the basics of each business model and then comparing them against each other to see which one comes out on top in terms of benefits, costs, and customer experience.
What is eCommerce?
eCommerce is buying and selling goods and services or transmitting funds or data over an electronic network, primarily the internet. These business transactions occur either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C) or consumer-to-business (C2B).
The most common form of eCommerce is online shopping, defined as buying and selling products via the internet. Other forms of eCommerce include online banking, ticketing, auctions, and peer-to-peer file sharing.
Pros of eCommerce
- eCommerce offers a wide variety of products.
- Customers can easily compare prices between different vendors.
- eCommerce provides customers with more information about products than they would receive in a brick-and-mortar store.
- eCommerce transactions are typically more secure than those conducted in person.
- eCommerce businesses can reach a global market.
- eCommerce businesses can operate 24/7.
- Shipping costs are often lower for eCommerce businesses than for brick-and-mortar businesses because they have less overhead and don’t need to maintain physical stores.
- Shoppers can purchase their desired items and get them delivered right to their doorsteps, which is perfect for people who hate going out shopping or if they don’t live near any retail outlets.
- eCommerce sites may offer free or expedited shipping options, which is especially appealing to people who want to get their items as soon as possible without having to pay extra fees or wait too long.
- Some eCommerce sites will also offer coupon codes and discounts on certain items, making it easier for shoppers to save money while still getting what they want — which is always a plus!
What is mCommerce ?
mCommerce is a type of eCommerce that takes place on mobile devices. Businesses with mCommerce capabilities make it easy for customers to purchase their products and services. This is done through mobile-optimized websites and apps. mCommerce is growing rapidly due to the increasing number of people who own smartphones and other mobile devices.
Pros of mCommerce
- It’s convenient for customers who are always on the go.
- It provides a personalized shopping experience since customers can access their account and purchase history on their mobile devices.
- It can increase sales since customers can make impulse purchases while out and about.
- It offers customers discounts and promotions that are not available in brick-and-mortar stores.
- It gives businesses the ability to track customer behavior and preferences.
- The cost of starting an online store is lower than opening a physical store, so it’s easier to start with mCommerce.
- Customers can research products on mCommerce platforms and compare prices across different retailers, which makes it easier for them to find the best deals.
mCommerce and eCommerce: What is the difference
There are a few main differences between mCommerce and eCommerce that you need to be aware of if you’re considering starting either type of business.
Here are the key points:
- It is typically used for small businesses that sell products and services online, while eCommerce is more commonly used for larger businesses that sell products and services through a website.
- It is typically focused on buying and selling products, while eCommerce is focused on selling products and services.
- It often uses simple checkout processes, while eCommerce can use more complex processes.
- It is usually cheaper to start than eCommerce, but both can require a significant financial investment.
- It typically requires less upfront capital than eCommerce, but both require ongoing costs.
- It can be used before a website is built, while eCommerce is usually used after a website is built.
- It has low start-up costs and lower annual costs. It only requires you to have an online store that collects orders through an online payment service such as PayPal or Stripe, find a web designer to design your site, and select the right domain name.
eCommerce typically involves higher start-up costs and higher annual costs. These businesses require more upfront investment and more time to build because they often require customers to create accounts on sales pages to register for sales on their sites. You also need to choose a payment option that can accept credit cards, debit cards, ACH (Automated Clearing House) payments, or eChecks.
Both mCommerce and eCommerce require you to build a website before they can be successful. You can select the appropriate method for your business after knowing its size and scope; however, these two types of businesses require different types of customer service and are targeted to different types of customers.
You need to determine which type of business you want your customer base to be, then look for a way to design the site that will cater to this audience and make the most of the content in their backyard.
Seek out an informed understanding
If you’re considering starting an online store, it’s important to consider the following distinctions:
eCommerce sells products directly to customers or through an affiliate program. mCommerce, on the other hand, is all about building a customer base and bringing in revenue through digital advertising.
While both strategies have benefits and drawbacks, choosing one depends on your unique business goals. So before you decide, seek out others for expert opinions and an informed understanding of the capabilities available.
Special thanks to Tremis Skeete, Executive Editor at Product Coalition for the valuable input which contributed to the editing of this article.
