Definition of E Commerce
E-commerce, or electronic commerce, refers to the buying and selling of goods or services over the internet or other electronic networks, such as through mobile devices, social media, or email. E-commerce can be conducted between businesses, between businesses and consumers, or between consumers. It allows for easy and convenient transactions between parties, often with lower costs and greater selection than traditional brick-and-mortar stores.
Role of smartphone in E Commerce
The widespread adoption of mobile devices has revolutionized the way people shop, and e-commerce has emerged as a significant driver of economic growth. Mobile devices, in particular, have transformed the way people make purchases, and businesses are scrambling to adapt to these changes. Here, we explore the role of mobile devices in e-commerce and how it is changing the way people shop.
- Convenience One of the main reasons people shop on mobile devices is convenience. With a mobile device, consumers can browse products and make purchases from anywhere at any time. This means that businesses can reach customers who may not have the time or ability to shop in-person or on a desktop computer.
- Personalization Mobile devices have also enabled businesses to create a more personalized shopping experience. By using data on consumer behavior, businesses can offer customized recommendations, deals, and promotions to shoppers. This personalization can increase customer loyalty and drive sales.
- Faster transactions Mobile devices have made transactions faster and more efficient. With the ability to pay through mobile wallets, consumers no longer have to spend time entering their payment information manually. Additionally, mobile devices have enabled businesses to offer one-click purchasing, which can streamline the buying process and reduce cart abandonment.
- Increased sales Mobile devices have opened up new sales channels for businesses. E-commerce platforms like Amazon and eBay have experienced significant growth in mobile sales, and businesses that invest in mobile e-commerce can reach a wider audience and increase sales.
However, there are also some challenges associated with mobile e-commerce. One major challenge is providing a seamless user experience across different devices and platforms. Businesses need to ensure that their websites and apps are optimized for mobile devices, and that they provide a consistent experience across different operating systems and devices.
Another challenge is security. Mobile devices are more vulnerable to security threats than desktop computers, and businesses need to ensure that their mobile e-commerce platforms are secure and protected from fraud.
Despite these challenges, the role of mobile devices in e-commerce is only set to grow in the coming years. As more people use mobile devices to shop, businesses will need to continue to invest in mobile e-commerce to remain competitive.
In conclusion, the role of mobile devices in e-commerce has been transformative. With increased convenience, personalization, and faster transactions, mobile e-commerce has opened up new sales channels and driven economic growth. However, businesses must continue to adapt to changes in the mobile landscape and address challenges related to security and user experience to succeed in the mobile e-commerce market.
The role of smartphones in e-commerce has grown rapidly in recent years, and there are a number of statistics that illustrate this trend:
- In Pakistan, according to a report by the Pakistan Telecommunication Authority, the e-commerce industry in Pakistan was worth approximately $2.1 billion in 2020, which is a significant increase from the previous year. Another report by the State Bank of Pakistan revealed that the number of e-commerce transactions increased by 45% in 2020 compared to the previous year, and the total value of these transactions was around $2.3 billion.
- It is safe to assume that smartphones have played a significant role in the growth of e-commerce in Pakistan, as mobile devices are the primary means of accessing the internet for a large segment of the population. A report by Hootsuite and We Are Social found that as of January 2021, there were over 76 million internet users in Pakistan, and around 39 million of them were using mobile devices to access the internet.
- Overall, the use of smartphones in e-commerce is growing rapidly, not just in Pakistan but around the world. As more people gain access to smartphones and the internet, e-commerce is expected to become an even more significant part of the global economy.
- Mobile e-commerce sales are expected to reach $3.5 trillion by 2021, up from $1.5 trillion in 2016.
- In the United States, mobile commerce sales are expected to surpass $432 billion by 2022.
- More than 50% of all e-commerce traffic now comes from mobile devices.
- Consumers are more likely to complete a purchase on a mobile device than on a desktop computer, with a 65% higher conversion rate on mobile.
- Mobile commerce apps have higher retention rates than desktop websites, with users spending an average of 201.8 minutes per month on mobile apps versus just 10.9 minutes on mobile websites.
- Mobile devices are increasingly being used for online shopping during major events such as Black Friday and Cyber Monday, with 37% of all online sales during Black Friday 2019 coming from mobile devices.
These statistics demonstrate the growing importance of mobile devices in the world of e-commerce, and the need for businesses to optimize their online stores for mobile devices to take advantage of this trend.