L4 - Ecommerce

Early eCommerce (1970s - 1990s)

The 1990s witnessed the birth of eCommerce, with businesses establishing online storefronts accessible via desktop computers. This era was characterized by the adoption of Electronic Data Interchange (EDI) and the introduction of online payment systems.

Transition to Mobile-Optimized Platforms (1990s - Early 2010s)

● Mobile-Friendly Websites

● SMS-Based Transactions

Rise of Smartphones and App-Based mCommerce (2010s - Mid-2010s)

● Proliferation of Smartphones

● Mobile Payment Solutions

Integration of Social Media and Commerce (Mid-2010s - Late 2010s)

● Social Commerce Emergence

● Influencer and Community-Driven Sales

Advanced mCommerce and Personalization (2020s - Present)

● AI and Chatbot Integration

● Augmented Reality (AR) Experiences

● Voice-Activated Shopping

● Seamless Payment Innovations

3 Types of mCommerce

• Mobile Shopping

• Mobile Banking

• Mobile Payment

Mobile Shopping

The most direct “translation” of ecommerce, mobile shopping is eCommerce on a mobile device. Brands have enhanced mobile shopping through mobile optimized websites, dedicated apps, and even social media platforms.

Mobile Banking

Another very common mCommerce activity is financial management. Unlike online banking, mobile banking typically has some limits on transaction types in order to make activities “thumb scrollable.” Mobile banking usually involves a dedicated app, though some financial institutions are now expanding mobile banking activities via chatbots and messaging apps.

Mobile Payments

The most exciting area of mCommerce utilizes technologies like NFC and custom apps to facilitate person-to-person, online and retail transactions. A user’s mobile device connects the parties of the transaction, facilitates the transfer of funds and documents the interaction.

Strengths

• Convenience

• Mobility

• Wider Reach

• Multiple Payment Options

• Ease of Use

Weaknesses

• Trust Concerns

• Unstable Connections

• High Costs

• Lack of Standards

Opportunities

• Augmented Reality (AR)

• Voice Search & Control

• Chatbots

• Mobile In-Store Checkouts

• Social Media Integration

Threats

• Security Risks

• Payment Fraud

• User Error

Key Factors Driving mCommerce Growth

1. Increased Adoption of Mobile Devices

2. Improvement in Mobile Payment Systems

3. Integration with Social Media Platforms

4. Growth of Shopping and Loyalty Apps

5. Advancements in Mobile Technology

6. Utilization of Augmented Reality (AR)

7. Personalization Through Data Analytics

8. Geolocation Services

9. Enhanced Security Features

10. Changes in Consumer Behavior

11. Development and Popularity of Banking Apps

12. Consumer Education

CPU

A minimum of a 1.6 GHz processor is recommended for web servers. For combined web and database hosting, a configuration with four 1.6 GHz CPUs is advisable to manage increased loads effectively.

RAM

At least 4 GB of RAM is necessary to ensure smooth operation and quick response times.

Storage

A minimum of 10 GB of database space is required to accommodate product information, customer data, and transaction records.

Network Bandwidth

Adequate bandwidth is crucial to handle user requests and data transfer without latency, ensuring a seamless user experience.

Operating System

Devices should run on modern operating systems, such as Android OS version 5.1 or higher.

Memory (RAM)

A minimum of 2 GB of RAM is recommended to support the smooth operation of the application.

Processor

A CPU with a frequency of at least 1 GHz is necessary to handle application processes efficiently.

Storage Space

Sufficient internal storage is required to accommodate the application and any associated data or updates.

Internet Connectivity

A stable internet connection, whether through mobile data (4G/5G) or Wi-Fi, is essential for real-time interactions and transactions within the application.

Backend/Server Sofware Requirements

• Inventory Management

• Order Processing

• Shipping and Fulfillment

• User Authentication

• Payment Gateway Integration

• Content Management System (CMS)

Hosting & Server Performance

• Security & Reliability

• Speed & Performance

Security

• SSL Encryption

• PCI Compliance

• Firewalls

Database Management

• MySQL

• PostgreSQL

• NoSQL

Client-Side (Mobile Device) Hardware Requirements

• Operating System

• Memory (RAM)

• Processor

• Storage Space

• Internet Connectivity

Server-Side Hardware Requirements

• CPU

• RAM

• Storage

• Network Bandwidth