M-Commerce and Social Commerce

•Mobile Commerce refers to conducting e-commerce by using mobile

devices and wireless networks.
•Social network (media) has opened new channels for consumers to not only
contact businesses and brands, but also to share the products that they like
with friends. Social Commerce refers to e-commerce transactions delivered
via social network (media), which includes:
Peer-to-peer sales
Social network-driven sales
Group buying
Peer recommendations
User-curated shopping
Participatory commerce: involves the buyer or public in design or production
of various products.
Why does M-Commerce matter?
•M-Commerce sales account for 34.5% of total E-Commerce sales in 2017.
By 2021, M-Commerce sales are expected to account for 54% of total E-
Commerce sales.
•One-third of our decision to purchase is influenced by looking up
additional information on a product via our mobile device.
•It has also served as a trigger for new industries and services, or helped
existing ones grow.
The combination of M-Commerce and Social Commerce will shape the
future of E-Commerce.
Attributes of M-Commerce
•Ubiquity: Being everywhere, especially at the same time. Given that Wi-Fi access is available in more and
more places, and that about half of all mobile phones are smartphones, we have easier ubiquity.
•Convenience and capabilities: Having a mobile device increases the convenience of communication. The func-
tionality and usability of mobile devices are increasing, while their physical size remains small and the cost is
affordable. Unlike traditional computers, mobile devices connect to the Internet almost instantly.
•Interactivity: Mobile systems allow for fast and easy interactions, Being everywhere, especially at the same
time.
•Personalization: Mobile devices are personal devices. While several people may share the same PC, a specific
mobile device is usually used by one person.
•Localization: Knowing where a user is physically located in real time provides an opportunity to offer him or
her relevant mobile advertisements, coupons, or other services. Such services are known as location-based m-
commerce.
Drivers

Widespread availability of mobile devices

Freedom from PC - Mobility and Personality

Mobile phone culture

Declining prices increasing functionality

Improved bandwidth – esp. 5G technology

Features of Mobile Devices

Time Dependent

Location Sensitive

Personalized
Major Application of M-Commerce
• Mobile shopping
Mostly similar to E-Commerce, but accessible via a mobile device. Mobile shopping is now
possible through mobile optimized websites, dedicated apps, and even social media
platforms.
• Mobile Financials: Mobile banking, Mobile payments, Mobile-brokerage
Not too different to online banking. Mobile banking usually involves a dedicated app,
though some banks have started experimenting with the use of chatbots and messaging
apps. Various payment options ( Apple Pay, Pay Pal, Samsung Pay, Venmo, Google Pay, …)
• Mobile Services
Location-based services (on-demand services), Mobile coupons, and loyalty cards, Target
Advertising personalized to location, Find the place nearby
Mobile Payments
• Mobile wallets, also referred to as digital wallets
At checkout they simply select the mobile wallet they are registered with, and
authenticate using Face, Touch ID or a PIN: Pay Pal One Touch, Apple Pay, Samsung
Pay, Google Pay, …

• Contactless mobile payments: Apple Pay, Samsung Pay, Google Pay

• Closed loop mobile payments: Walmart Pay, Starbucks, Taco Bell
• Money transfers: Venmo, …

Back
Limitations

• Insufficient Bandwidth (5G, 6G?)

• Security
• Power Consumption
• Handset, Monitor
• Possible Health hazards
• Complexity
Social Commerce
•Social Commerce refers to e-commerce transactions delivered via social
network (media)

• Internet was intended, in part, as a community-building technology that

would allow scientists to share data, knowledge, and opinions in a real-
time online environment —> In the early stage, Internet was the ‘Virtual
Communities (usenet)’.
• Social Network : an online space where people share common ties and
interact with one another (exchange words, photos, videos and ideas,…)
Social Network Users (2020)
About 95% of Facebook’s U.S. users
access Facebook from a mobile device
at least some of the time, and over two-
thirds are mobile-only users. In 2019,
Facebook app had the highest number
of U.S. unique visitors (about 177
million) of all social network mobile
apps and was the second-most popular
smartphone app (behind YouTube)
among U.S. smartphone users. Some
social networks, such as Instagram and
Snapchat, are almost entirely mobile.
Other US-Based Social Networks
Types of Social Networks
Social Networks to Businesses
• While the early social networks had a difficult time raising capital and
revenues, today’s top social networks are now monetizing their huge
audiences
• Early Social Networks replied on subscriptions
• Advertising : accept Advertising
as supporting web experiences
rather than paying for it