Commerce on Mobile. Is it the Future?

Posted in Group Discussion (GD) Topics with Answers, Total Reads: 341

6 people are having a discussion on the topic (Albert, Monica, Robin, Suzy, Kevin & David)

Category: Business

Group Discussion Starts

Albert: Good morning friends. Today we are here to discuss on the topic “Commerce on mobile. Is it the future?” Commerce on Mobile popularly known as mobile e-commerce (m-commerce) generally implies the transactions through online sales which merely takes place through the wireless electronic devices like mobiles and tablets etc.., it is a subset or part of e-commerce.

Monica: Coming to the topic. Is m-commerce going to be the future? With the advancement in the smartphones and technology people are turning towards easier options like online shopping in most possible ways. The statistics also reveal that there is 10% growth for every 3 moths which is very rapid when compared to the growth of e-commerce.

Robin: Yes Monica, I agree with what you said. Even the popular e-commerce sites like Flipkart and Myntra have turned to only app to increase their sales. Even the growth rate of these have  increased to a great extent by going app. Almost all the other e-commerce websites are also launching their own apps(applications) to increase the customer base. So, I suppose m-commerce is definitely going to rule in future

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Suzy: I would like to contradict this point. Because there are many disadvantages as well as the advantages m-commerce have. People lack many facilities in the short screen that was provided by smartphones or tablets. It is difficult to compare two or more items at a time in separate windows which is possible in computers. Hence, though there is a growth rate, It may not be the future

Kevin: It’s true Suzy. Only younger generation mostly prefer smartphones. But most of the Adults prefer Computers to do the online shopping. Most people like to compare products in different websites where they are getting the prices at reasonable and lower costs. Also to this, Smartphones storage is limited. Customers cannot download every application whichever they seem to be is possible.

David: Of course, Customers are being attracted and turning towards the offers that the applications are featuring. For example Flipkart and Amazon are reducing the costs and providing many offers to the customers in their applications. Many customers find it convenient way to use these smartphones and tablets.

Albert: At this point, I would like to say that apps (applications) also updates the customers with the notifications and offers. The app also acting as a brand and also  provides a chance of user perSuzyzation.

Monica: Yes Of course, m-commerce was introduced in 1997.From then on we see a tremendous growth in the m-commerce. Before the Introduction of m-commerce, customers prefer to use SMS systems on their mobiles. Later on with the launch of i-phone m-commerce has coarse to applications from SMS systems.

Robin: Yes indeed, with more attractive features these wireless devices are an effective platform for online sales. Easier transactions through net banking and mobile banking are also paving a good path for the growth of m-commerce.

Suzy: But one must also consider the conversion rate. Conversion rate means the no.of sales per no.of users. It simply implies the no.of products per user and no.of products selected and finally it counts the no.of the products purchased. The conversion rate is high for computers when compared to the smartphones

Kevin: I would like agree to this point. Indeed in many segments like fashion, luxury, home furniture and travel customers give priority to shop on computers rather than smartphones. They have the perception that transactions that occur through computer are more accurate.

David: Conversion rates may be low in countries like US. But the conversion rates are high in countries like Japan and South Korea in case of smartphones and Tablets. With the increased penetration of smartphones. The big Giants like Flipkart and Myntra have turned to app only strategy. They are planning to re-launch new mobile websites namely Flipkart Lite.

Albert: Yes, I agree with you David. Also maintaining and running costs of these applications are far less when compared to maintaining a website. The sellers who went to App believe that, even though there might be a decrease in market share but the profits and the loyal customers increase in the future span.

Monica: Yes. Though there like limited hard disk capacity and processing speed in smartphones. The smartphones are coming with enhanced features day by day which much more new facilities, so that it can compete with the computers. So, there is a high probability of m-commerce in the future

Robin: Agreed. The perSuzyzation mobile offers is highly reliable. With the new features and flexibility provides pushes the customers more towards the m-commerce. This is also a main reason for increase in the m-commerce in the future


M-commerce also known as mobile e-commerce is growing a tremendous pace when compared to the e-commerce. With the decrease in the price of the smartphones with the enhanced features, even common man is grabbing a chance to use the m-commerce where he cannot buy a computer . And also the offers and the facilities provided by apps are flexible to the customers. m-commerce is a mutual benefit for customers and sellers. Sellers get more profits through apps. With the low data rates customers prefer apps to website. So, m-commerce will ultimately is the future.

Facts related to the topic

• Mobile is 29% of e-Commerce transactions in the US and 34% globally. For the first time Japan and South Korea had over 50% of their e-Commerce transactions on mobile and more than 40% in the UK.

• I-Phone share of e-Commerce transactions has grown 12% over the last quarter.

• In US, The conversion rate is 4.55% in e-commerce whereas conversion rate is 2.46%.Wher as ,conversion rate of Japan is 9.35%

• Mobile transaction growth from Q4 2014 to Q1 2015 is significant across the globe, ranging from 10% in the US to 16% in Germany.

• Flipkart claims 150% sales growth in 2015

• Eight Percent of Amazon’s Sales Are Coming From Mobile