With the advent of technologies like E-commerce and M-commerce, the business world is changing with a rapid rate. E-commerce and M-commerce concept started long back, that is, around 5-6 years back, but since then, these industries have reported a tremendous growth in the market.
Electronic commerce (E-commerce) is related to buying and selling of products and services through electronic mode, such as Internet. Mobile Commerce (M-commerce) is related to transferring or accepting the goods and services by using the mobile devices to computer networks or vice versa.
Various industries are affected by E-commerce such as automation in supply chain and logistics, payment system in the domestic and international market, Enterprise content management, software development companies, Group buying, Automated online assistants, Instant messaging, Newsgroups, Online banking, shopping , and office suites, Shopping cart and order tracking, Teleconferencing, and Electronic tickets. Whereas on the other hand, M-commerce includes industry domains like banking, ticketing, purchase, browsing, storefront and brokerage, marketing and advertising, and auction.
Using M-commerce, users can book movie tickets on their phones by accessing the Internet on their phones and also can receive tickets send by the cinema people using different e-commerce technologies to their phones. This helps the users to escape from the rush at the movie ticket window and can show these tickets at the entrance of cinema. In the same manner, people can receive coupons, discount offers, and loyalty cards on their mobile phones and can get these offers at retail outlets by showing their phones. A very good example of M-commerce is mobile banking and shopping online where a client can access his account via mobile phone and can conduct the shopping transactions.
Despite being similar in nature, as both involve buying and selling, there are differences between the two. E-commerce is possible only when we have the internet connectivity, but talking about M-commerce, we do not require any internet connectivity. Through M-commerce it is now possible to do Video conferencing even in places where there is no internet. E-commerce not only requires internet connectivity but also the consumption and usage of electricity whereas there is no such requirement with M-commerce. Even a layman can do M-commerce in comparison to E-commerce but still, using M-commerce costs more than using E-commerce.
On technical grounds, we can consider M-commerce as a part of E-commerce marketplace as it gives authority to the user to do transactions using his mobile phone. The best example is companies involved in outsourcing businesses make use of custom software development and contact the client through B2B e-commerce. The more common B2B examples and best practice models are IBM, Hewlett Packard (HP), Cisco and Dell. Cisco, for instance, receives over 90% of its product orders over the Internet.
With the increase in the use of internet, E-commerce has captured the market and people over the last few years. Apart from online transactions, E-commerce has also affected people's lives when shopping at the outlets because of the use of swap machines where customers pay using their credit and debit cards. E-commerce can take place between two companies, ie B2B, or between companies and customers, ie B2C.