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Last Updated : Feb 21, 2014 10:21 PM IST | Source: CNBC-TV18

M-commerce gathers steam; it is 30% of e-commerce revenues

Smartphones have not just changed the rules of the e-commerce game - they've turned it on its head.

Twelve months ago mobile-commerce or m-commerce was a minor revenue-generating side of the business but today it makes up nearly 30 percent of the revenues enjoyed by e-commerce companies and one that's seeing more and more investment pouring in.

Smartphones have not just changed the rules of the e-commerce game - they've turned it on its head.

In 2013, m-commerce - that's business from a customer on a mobile-phone platform accounted for 10 percent of the revenues earned by fashion e-commerce sites Myntra and 5 percent for online deal place Snapdeal. A year later, this platform has doubled for myntra and grown 6 times for Snapdeal and that's only going higher by the day.


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Both players now expect that in the next 12-24 months, half their revenues will come from m-commerce.

Similarly, 15 percent of the bookings received by online travel company yatra.com come from mobile phones, and the company is keen on increasing this share to 40-50 percent as soon as possible.

Others, like local search website Justdial, enjoy a much higher rate of success and says mobile internet is leapfrogging at 150 percent.

Rachna Nath, Executive Director, PWC said there were actually 17 million people browsing the net & only 3 million were buying. over a period of time, with the adoption of smartphones and availability and people getting real conscious, the conversion ration of people browsing to buying has increased.

A bulk of this m-commerce growth stems from tier 2 and tier 3 markets, which are growing 3 times faster than tier-1 markets. That’s mainly thanks to affordability, higher aspirations and fewer brand options. And naturally players want more, which explains not just the tweaking of business models, but also the heavy investment they're making in m-commerce.

Ganesh Subramanian, chief merchandising officer, myntra.com said: “We are looking at this as a separate business unit.  We are investing in a dedicated team of people who will look at m-commerce. We are making the mobile process more convenient and investing heavily in technology for the m-platform. We’ll be launching several mobile apps going ahead.”

Ankit Khanna,VP-product management, Snapdeal: “We are going to launch our windows app in 2 months. We are personsalising the mobile experience. So we have talked a lot and doing a lot of things around curation, recommendation on our website & now we want to take it to next level and do it for mobile.

Of course, there are some challenges - from low penetration of 2G and 3G services, to slow internet speeds, to secure payment gateways for mobile transactions. But there's still no escaping the fact that customers are overjoyed that all it takes is a click on their mobile phone to make that shopping cart overflow.

First Published on Feb 21, 2014 10:21 pm