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While many of us are familiar with the concept of ecommerce and its growing presence taking over traditional in-person retail, "mobile commerce" may sound foreign. Mobile commerce, or m-commerce, refers to the buying and selling of goods and services through mobile devices.
In 2022, the mobile e-commerce industry grew by 387 billion USD, with one third of U.S. internet users buying something online via their mobile phones each week. Now, in 2023 and beyond, AI-powered advancements are poised to reshape the mobile commerce landscape.
In this article, we’ll dive into the rise of mobile commerce, its key components that all online retailers must know about, and the role of AI technology in this growing industry.
What Is Mobile Commerce (m-commerce)?
M-commerce refers to the process of buying and selling products and services through mobile devices. M-commerce encompasses a wide range of activities, including:
- Online shopping
- Mobile banking applications
- Mobile payments with apps like Apple Pay
With the ubiquity of smartphones and the convenience they offer, m-commerce has become a significant driver of online retail.
The Rise of Mobile Commerce
The exponential growth of m-commerce can be attributed to several factors. First, the increasing affordability and accessibility of smartphones have led to a surge in the number of mobile users, with 7.33 billion mobile users worldwide in 2023.
Additionally, the improvement of mobile networks and the availability of high-speed internet have made it easier for consumers to shop on their mobile devices.
The convenience and flexibility of mobile shopping have also appealed to a generation that values on-the-go solutions. This, coupled with the increase in mobile e-commerce apps like Amazon and Instagram, has made it easier for users to make their purchases on the devices they already use the most: their smartphones.
The Difference Between M-commerce and E-commerce
Though m-commerce is a subset of e-commerce, it refers to the specific use of mobile devices to make purchases and transactions and sell goods and services. E-commerce, on the other hand, refers to all commerce conducted via the Internet, such as traditional online shopping. However, e-commerce includes online shopping via laptops and desktop computers, while m-commerce does not.
Both m-commerce and e-commerce have their advantages and disadvantages. M-commerce makes buying items and services online more convenient than ever for consumers, helping businesses boost sales and reach new audiences. Despite its ease of use, m-commerce shops had lower conversion rates than e-commerce ones in 2022.
This means that more purchases were still made on desktops and laptops than on mobile phones. Nonetheless, e-commerce companies need to adapt to the rise of mobile users as m-commerce continues to expand.
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Key Components of Mobile Commerce
Mobile commerce can be broken down into a few main components. These key components include mobile apps, mobile-optimized websites, and mobile payment solutions:
- Mobile apps: Mobile apps that allow for the selling and purchasing of goods and services are a key aspect of m-commerce. For example, retail businesses like Amazon or Nordstrom may offer their own mobile applications to create an easy shopping experience for users. Additionally, the rise of mobile shops on social media apps like Instagram and TikTok fall under this category.
- Mobile-optimized websites: Websites for online retailers that are formatted to work seamlessly on mobile devices are also a major part of m-commerce. Having a mobile-friendly website is now considered the standard for websites. And it is especially crucial for online retailers.
- Mobile payment solutions: Mobile payment applications like Apple Pay, Venmo, PayPal, and banking apps also fall under m-commerce, as they are financial transactions conducted via mobile devices.
How AI Enhances Mobile Commerce?
With the rise of mobile users around the world, it’s clear that online retailers need to put much more of their attention toward creating a conversion-boosting mobile website and/or shopping application. Luckily, AI has aided many m-commerce advancements to do just that, creating a better shopping experience for retailers and consumers alike.
Here are some AI-powered trends to watch out for in 2024:
- AI enhances m-commerce through personalization.
- AI enables beauty brands to provide virtual try-on services.
- Chatbots leverage AI to deliver better customer services.
- AI empowers the online checkout process to be more seamless and fast.
1. AI-Driven Personalization
AI technology is changing the m-commerce industry by its ability to provide a highly personalized experience for customers. One way retailers are using AI algorithms is to analyze user data to offer tailored product recommendations. This connects customers with products that they are most likely to buy and enjoy, increasing conversion rates and customer satisfaction.
A personalized shopping experience also helps to better solve customers’ unique issues, building their connection to and loyalty with brands.
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2. Virtual Try-On
Another m-commerce AI trend is the implementation of virtual try-on tools. Virtual try-on refers to digitally trying on products like clothing, jewelry, and even makeup products. With m-commerce, virtual try-on tools pair with one’s mobile camera to give an augmented reality (AR) view of the product(s).
Perfect Corp. offers AI-powered e-commerce solutions like Virtual Try-On to take online retailers’ platforms to the next level. Our Virtual Makeup and Jewelry Try-On tools integrate seamlessly with mobile websites and applications to provide a revolutionary shopping experience for consumers. Our technologies let users try on necklaces, rings, bracelets, makeup, nail polish, and much more.
The ability to view digital 3D-renderings of products on one’s own body helps customers better understand what products will look like. This not only increases online conversion rates for retailers, but it also improves customer satisfaction and decreases return rates. See for yourself how easy it is to set up and use these AI-powered try-on tools at our Demo Store.
3. Chatbots and Customer Support
Another AI trend in mobile commerce is the use of AI-powered chatbots and customer support. AI-driven chatbots provide instant, 24/7 assistance, answering customer queries and facilitating smoother shopping experiences.
These algorithms help retailers handle a large volume of customer inquiries, without having an expensive customer service team. Real customer service representatives are then able to focus on the customers that need more thorough attention.
4. Seamless Checkout & Payment
AI is also powering seamless checkout and payment processes for mobile retailers in 2023. There has been an increase in one-click checkout options and automatically filled-out payment details thanks to the use of AI algorithms to make a more seamless shopping experience across devices.
These AI capabilities also enhance the security of personal details, with continuous learning models making online checkout more secure than ever.
Take on M-Commerce with Perfect Corp.
Mobile commerce is not just a trend — it's a transformative force reshaping the retail landscape. The integration of AI is set to take mobile commerce to new heights, enhancing personalization, security, and user experiences.
Perfect Corp. is a leading provider of AI solutions for online retailers. We offer revolutionary AI-powered tools for both mobile and e-commerce use, taking the retail game to the next level. Our AI-powered virtual try-on tools are the future for boosting conversions in the online retail industry.
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Contact one of our experts today to learn more about how Perfect Corp. can grow your business with the power of AI.
FAQ:
1. What is mobile e-commerce?
Mobile commerce, or m-commerce, refers to all commerce conducted on mobile devices and smartphones, such as the selling and purchasing of goods or services, financial transactions, and mobile payments.
2. Why is mobile commerce important?
Mobile commerce is important as it is quickly catching up to traditional e-commerce. In 2022, the rate of mobile purchases nearly doubled since 2019. With the rise of mobile users worldwide, more retailers need to adapt their e-commerce platforms to mobile use.
3. How does artificial intelligence enhance mobile commerce?
Artificial intelligence (AI) is enhancing mobile commerce by providing more personalized, seamless, and secure online shopping experiences that boost conversion rates, customer satisfaction, and customer loyalty.
4. What are the challenges of mobile commerce?
Mobile commerce has some challenges, such as lower conversion rates than non-mobile commerce. Many retailers have not yet mastered bringing the customer down the purchase funnel on their mobile platforms. Luckily, AI tech is helping m-commerce retailers change that.
Get expert advice from Perfect Corp. and get ahead of the beauty tech trends. Contact us for details on beauty tech solutions trusted by over 600 brands globally.
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