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Online Retailers Falling Short with their Product Recommendations

February 8, 2010 by ecommercejunkie

Product recommendations and featured products can be a very effective component of an online shopping portal. Highlighting items for shoppers visiting your site and using their shopping history to pass along other products they may like is an excellent way to boost sales and increase customer retention. But as a new survey indicates, many retailers are not using this feature to its full potential.

ChoiceStream, a product recommendations specialist and display ad provider, just released the results of its 2009 Personalization Survey. The company polled nearly 600 adult web users, nearly all of whom had made an online purchase in the past six months

In this pool of experienced online shoppers, 59 percent of the respondents reported getting poor quality product recommendations last year, up from 45 percent in 2008. Similarly, only 17 percent of those polled rated retailers’ product recommendations as excellent.

The overwhelming unhappiness on the part of the survey participants regarding their experience with retailers’ product recommendations came down to the fact that they were receiving recommendations unrelated to what they were shopping for or for products that did not match their preferences. Others in the survey, almost 45 percent actually, were unhappy because they got recommendations from products they already own.

Lori Trahan, ChoiceStream’s vice president of marketing, summed it up pretty well. “Consumers expect more from recommendations than they did even a year ago,” she said. “They expect them to be accurate and on target, so when they’re not, shoppers are disappointed.”

While product recommendation sections on retail websites are far from a perfect science, it’s pretty telling that this group of shoppers had the issues that they did. What really strikes us as odd is the figure indicating that retailers are recommending products that a consumer already owns. It’s possible that consumer might have actually purchased the product on the same site now giving them the recommendation, which reeks of sloppy data mining and organization on the part of that merchant.

And that’s what it all comes down to. If you’re going to offer shoppers recommendations on products and product categories, you need to have good customer data. The more information you collect on your customers, the easier it is to provide them with ideas for products that they will actually find useful. Shopping history, preferred brands, and average spending per transaction are just some of the things you should take into account when you’re crafting information for product recommendations.

You can also try offering questionnaires or surveys to your regular customers (albeit with some incentive for them, like discount on their next purchase or free shipping) to pull together important data. The bottom line is that product recommendations can be a useful offering for retailers and a big hit with consumers if the merchant goes about them in the right way.

We want to hear from you. As a consumer, what do you think about the product recommendations you find on retail sites? And merchants, what is your process and level of success with offering them? Leave us a comment below!

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January Retail Data Offers Hope

February 5, 2010 by ecommercejunkie

We saw that retailers had a rough December when the Commerce Department released its retail sales figures for the last month of 2009.  While we have to wait a few more weeks for the government to unveil its January retail data, a Thompson Reuters survey on the subject should give the industry something to feel good about moving forward in 2010.

According to the report, which polled 29 major retailers, sales rose by a healthy 3.3 percent rate in January.  That’s more than twice what many industry analysts were anticipating and builds on Thompson Reuters’ December report that showed a 2.9 percent increase in sales.

To put things in even greater perspective, the January 2009 survey reported a sales drop of 5.7 percent, meaning the retail industry has come a long way in 12 short months.

A separate report from the International Council of Shopping Centers for retail sales last month reported increases of 3 percent as well, echoing the Reuters report and giving the retail industry a strong finish to its fiscal year, which generally ends in January.

There were several chains that reported having one of their best months in years, including Macy’s, Gap Inc. and Kohl’s.  Even some higher-end merchants like Neiman Marcus, Nordstrom and Saks exceeded analysts’ expectations, indicating that American consumers have not completely turned away from spending on luxury items.

While the data from both reports is encouraging, the consensus is that there is still a long way to go for the retail industry. The nation’s dismal unemployment rate and overall ho-hum consumer spending figures, both of which are closely tied to the performance of retailers from month to month, figure to slow down the growth just a bit as the first quarter of 2010 gets underway.

The Labor Department reported yesterday that initial claims for unemployment benefits rose again last week, albeit somewhat unexpectedly.   That’s now four of the last five weeks that have seen increases in workers filing for those benefits, meaning layoffs are continuing and new jobs are pretty scarce.

As we always say, it important for retailers and merchants to keep track of these kinds of economic indicators, not only because they can help explain the current economic situation but because they also tend to provide a glimpse of what’s to come in the near future.   But we’d like to hear from some of you today.  If you’re a merchant or retailer, leave us a comment with your thoughts on the current retail climate, where you think it’s going, and how you’re dealing with the current economic state.

Posted in ecommerce, merchant tips | Tagged , , , , , , , , , , | Leave a Comment »

Merchant Certifications: How they can help your eCommerce operation

February 4, 2010 by ecommercejunkie

There is no doubt that online shopping is growing in popularity.  Every year more and more people are logging on to shop and save money.  As the number of users has grown, the e-commerce industry has itself expanded, incorporating new features, tools and social networking sites to reach even more people. While the increase in popularity is good news for retailers, it also means that competition among merchants to attract consumers and develop customer loyalty is only going to get more fierce.

The question you must ask yourself constantly as a retailer these days is simple:  as part of a burgeoning industry with so many players, how do I continue to separate myself from the competition?

Customer service is obviously paramount to this question. We covered the holes many online retailers have in their customer service offerings a few weeks ago when we reported on the E-tailing Group’s study of online customer service.

Part of solid customer service is communicating your commitment to good business practices to potential consumers, and that’s where certifications come in.  Increasingly, more shopping portals and comparison engines are recognizing reputable retailers and merchants with these kinds of certifications.

One such example is the SortPrice SCM program from Sortprice.com.   The company adds a “Sortprice Certified Merchant” (SCM) seal to the product listings of retailers that fulfill Sortprice’s criteria for outstanding service—including accurate and up-to-date pricing information, multiple shipping and payment options, and reliable and convenient customer service options for shoppers. These retailers also can add the SCM seal to their own homepages to promote their recognition as a merchant that is serious about hassle-free shopping and real savings.

TheFind.com also runs a similar program called UpFront.  Participating merchants affix an UpFront button on their homepages that gives consumers quick access to vital information about the retailer, such as contact information, how long the business has been around, and any special information about pricing and shipping options.

The value of these kinds of programs is pretty obvious.  With consumers inundated with online shopping  choices, they can afford to be picky about who they purchase from. Many of them may still also be a bit wary of shopping online and thus will avoid merchants they don’t know too well or that seem to run less-than-legitimate operations.  If they come across a site that has been rewarded for strong performance, not only will it put their minds at ease, it also increases the likelihood that they’ll buy from you now and then again in the future.

As a retailer, you simply cannot afford to not be a part of these kinds of programs when they’re offered by your online partners.  We’ll go a step even further and suggest that you prioritize listing with comparison engines, like Sortprice and TheFind, that have them.  If you need to make upgrades or improvements to your site and technology to qualify for them, you should do so.  The cost is worth it in the long run.

For merchants operating in smaller markets, you can also establish yourself with local partners to even further enhance your reputation.   Join your local and state chambers of commerce and register with the Better Business Bureau near you and make sure you advertise and promote your relationships with bothclearly on your site and marketing materials.

In short, anything you can do to convey to consumers and potential customers that you take their shopping experience seriously—on everything from selection to security to service–will go a long way towards separating your operation from your competitors.

Leave us a comment below with your thoughts!

Posted in ecommerce, merchant tips | Tagged , , , , , | 1 Comment »

Site Problems Resulting in Lost Customers for Many E-tailers

February 3, 2010 by ecommercejunkie

As an online retailer, one of the most important things you can do to ensure the success of your operation is to have a website and shopping portal that is humming along without any glitches. We’ve stressed the importance of optimization in several posts before, most recently in our 5 Merchant Tips for 2010 and Cyber Monday Merchant Tips blogs to reinforce just howcritical this component of running an online store is.

Why are we bringing this up now?  Because we came across a report that substantiates what we’ve said all along—a shopping portal with technology problems more often than not results in lost customers, lost sales and a boost for your competition.  In short, it says that online shoppers have very little patience or tolerance for sites that take too long to load or malfunction during the transaction process, especially during the busy holiday shopping season.

The survey, conducted by Equation Research for Gomez, the web-performance division of Compuware Corp., polled 1,500 consumers between Dec. 16-22 of last year, all of whom had used the web to buy products or services over a nine-month period of 2009.  The standout statistic from the findings: the revelationthat one out of every five shoppers who experience problems or wait times when using a retailer’s site are likely to go to a competitor’s site instead.

This is a very important study for online retailers.  More than half of those polled indicated that they spend a “significant” portion of their web purchasing dollars during peak holiday shopping times, meaning that this data is collected from some of the most consistent and experienced online shoppers out there.  These are people who rely on the web for most of their shopping needs, whose online spending likely exceeds the national average of about $1,050 annually.   In short, they’re people you want as customers.

What else did the report reveal?  One third of the respondents said they had a bad experience on retail and travel sites during the 2009 holiday shopping period.  Additionally, 41 percent said they’ll tolerate no more than two glitches with a retailer’s site before they’ll abandon it for a competitor.

But here’s where it gets really critical.  More than one-third of those polled said they moved on to competing web sites because of poor performance.  47 percent of those people left a poorly-operated site with a negative perception of that retailer (and one that probably won’t result in a return visit), while another 42 percent admitted that they shared the negative experiences they had with others via blogs, on social networking sites, and via emails and word-of-mouth. Obviously, that’s the kind of advertising no business wants.

“The first lesson for online retailers is that performance matters on peak time,” said Jeff Loeb, Gomez vice president of product marketing.  “Secondly, in terms of what they can do, [online retailers] need to be much more proactive in determining if their web application infrastructure can support [peak time] shopping.”

We couldn’t have said it better ourselves. Check out our previous postings on the subject to learn more about how you can optimize your web site for maximum performance and total customer satisfaction.  We’ll continue to track studies like this in the future so we can gauge what’s happening out there in the industry but as always, feel free to leave us your comments and suggestions below!

Posted in Online Shopping, ecommerce, merchant tips | Tagged , , , , , , | Leave a Comment »

Great Companies & People to Follow on Twitter if You Love Ecommerce

February 3, 2010 by ecommercejunkie

We did some digging around to see if we could find ecommerce-related companies on Twitter and have started to compile a list of users to follow.

If you love ecommerce we recommend adding the following people and companies to your daily tweets.

Datafeed companies:

Godatafeed
Singlefeed
Mercent
Feedperfect
iProspect
CPCstrategy

Comparison Engines:

Become.com
SortPrice.com
PriceGrabber.com
The Find

Ecommerce experts:

Linda Bustos
Shawna Fennell
Ina Steiner
Scott Wingo
Bill Mirabito
Brian Walker

Feel free to recommend other users for ecommerce related Tweets below.

Posted in ecommerce | Tagged , , , , , , , , , , , , , , , , , , , | 2 Comments »

Bing & Google Closing in on CSEs

February 2, 2010 by ecommercejunkie

You may think the growing battle between Microsoft’s Bing.com and Google for web superiority is merely a matter of search dominance; that as an online retailer, you don’t need to pay much mind to these two giants battling it out.  However, such an assumption would be foolhardy, as both are beginning to cut into the success of comparison shopping engines across the web by offering their own comprehensive shopping portals.

And this is just the start.

Bing is on the verge of overtaking Yahoo as the no. 2 search engine behind Google, which is only a formality once Microsoft is done finalizing the particulars of its deal with Yahoo to run Bing as that site’s search engine.  The company then figures to invest serious money to challenge Google for the top spot, and e-commerce will likely be a very big part of Microsoft’s planning and strategy. Given that Google and Bing have been one-upping each other back and forth for the past year or so, and that both seem committed to continuing that trend as they expand their e-commerce platforms, their battle has consequences for both shoppers and retailers alike.

Bing made shopping results one of its cornerstones when it was launched in June and its product results mirror the layout of many shopping sites and comparison search engines already.  Bing also added a Cashback feature that has only added to its popularity as a shopping resource. Google, of course, countered in the fall with a number of retail innovations on its search results pages, most notably presenting product images from retailers feeding into its product search service. Google also expanded its product listings advertising program and introduced Sitelinks: an advertising system that lets retailers show multiple links for one CPC advertisement.

The result?  Traffic at both the Bing and Google shopping pages is starting to climb and more retailers are looking into how to incorporate both into their e-commerce efforts.  Even the smaller search engines are taking the cue from Bing and Google;  Ask.com, which trails both by large percentages in the search industry, offers up a Deals & Coupons section featuring product listings.

All of this begs the question, will search leaders like Bing and Google expand their shopping offerings to the point that they’ll put comparison search engines and shopping portals out of business?   And will merchants very quickly begin cutting back their feeds to CSEs in favor of the big boys?

For consumers, having more choices when it comes to online shopping is naturally a good thing, but for now, it seems that CSEs are still the best option for retailers.  As self-contained entities focusing squarely on product listings, CSE’s are able to provide to shoppers a broader selection of merchants and products and more resources than the general search engines.

For example, we did a search for “video cameras” on Sortprice.com, Google Products and Bing Shopping.  The results pages all look reasonably the same, with Sortprice offering the most, followed by Google and Bing.  The latter two offer some options for modifying your search.  But Sortprice gives you the most choices for whittling this list down even further, whether it be by retailer or price range, while also giving you the option to shop by color (a feature visibly absent from the other two).   It’s also a lot easier to find product reviews on a CSE, which many consumers cherish more than any other online shopping tool.

The CSEs are also more fluid.  Your search results page isn’t cluttered with ads like they are on Bing and Google, and in most cases, the product listings indicate clearly which merchant is advertising which product at each particular price so you know exactly who you may be buying from.  Finding the merchants for specific product listings on Google and Bing can be time consuming.

However, that could all change.  One clear advantage the search engines have as they enhance their shopping offerings is that they can shorten/tighten the link between web searching and shopping.  For example, they could create tools that let users make a direct purchase without leaving the page where the search results are listed, or similar applications that streamline the process.

Regardless, Bing and Google are giving both shoppers and merchants something to think about moving forward.  While they both have a long way to go to catch up to the services and tools offered by comparison search engines, their status as technological trendsetters coupled with their fierce rivalry will undoubtedly change the face of e-commerce in the near future.

Leave us a comment with your thoughts about shopping with Google, Bing and traditional comparison search engines below!

Posted in Online Shopping, ecommerce, merchant tips | Tagged , , , , , , , , , | 1 Comment »

Tackling Third Party Fraud

January 29, 2010 by ecommercejunkie

The New York state government, which we put under the microscope last year regarding their proposed internet tax policies, is now back in the e-commerce news.  This time, however, they’re in the news for something positive—putting an end to fraudulent practices involving loyalty discount shopping programs on the web.

At issue is how certain retailers are sharing consumer information with third parties, without the knowledge of those consumers.

New York’s attorney general office has handed out subpoenas to 22 retailers requesting information on their relationships with Webloyalty, Vertrue and Affinion/Trilegiant, all of which provide post-transaction sales services used by e-commerce outlets for certain marketing programs.  Barnes & Noble, Staples, Budget Car Rental, Orbitz, Expedia and Ticketmaster are just some of the outlets being questioned in the matter.

The investigation, according to the attorney general’s office, centers on practices “that deceptively link unsuspecting consumers to fee-based membership programs that charge unauthorized fees under the guise of discount offers”.   It comes on the heels of growing scrutiny of these kinds of post-transaction moves, which invite customers to join discount clubs without disclosing the monthly fee that gets charged to the user’s credit card.

It is believed that some online retailers have received portions of the revenue from those fees in the past, while still others have shared consumers’ credit card information with the discount club during the enrollment process, also without the knowledge of the shopper. Consumers are later left confused when they find charges they didn’t explicitly authorize showing up on their credit card statements.

How bad is the problem?  Some reports estimate that between the three companies, $1.4 billion was collected from loyalty and membership program participants, with $792 million being channeled back to the sites that hosted the offers in the first place.

Webloyalty already had to settle a class action lawsuit over the issue last summer, the result of which was a $10 million payout to consumers who had been enrolled in its online clubs.   As part of the agreement, the company also was required to clarify the marketing language on its site and change the enrollment process.  Affinion settled similar suits in 2005 and 2006 to the tune of almost $25 million refunds but obviously the leadership in Albany thinks more could be done to protect consumers and is now pushing to pressure retailers to adopt even stricter policies regarding their relationships with third party marketers.

These kinds of shady practices are exactly the kind of thing that scares a lot of people off from shopping online.  But they also serve as a reminder that you need to be diligent in your online shopping practices on the whole, and especially careful when it comes to where you’re entering credit card information.  Pay strict attention to which retailers you shop with and make sure to read all of the terms and conditions pertaining to customer loyalty programs so you know exactly what you’re signing up for.

We’ll keep tabs on this issue and update you as new information becomes available.  But as always, we welcome your feedback in the comment section below.

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Introducing the iPad…Now What?

January 28, 2010 by ecommercejunkie

Apples new ipad

Apples new ipad

With much hype and fanfare, Steve Jobs unveiled the newest addition the Apple line yesterday – the highly anticipated iPad tablet.  Though the iPad won’t be widely available until March, many in the media and blogosphere are buzzing about it already, but not all the early returns are positive. Many are questioning where it fits in the realm of personal computers and smartphones, with still others wondering if the iPad really will become as useful as Apple’s other latest innovations or just a gratuitous toy for those that can afford it.

The angle that we want to cover today with regards to the iPad is how it will stack up with your existing laptop and whether it’s a worthwhile investment for the casual user.  So let’s do a rundown of the device itself first.

On aesthetics alone, you can’t help but marvel at the iPad.  It’s half an inch thick and weighs less than two pounds, making it extremely portable.  The 9.7 inch glass touch screen will offer an unparalleled viewing experience for videos, books, and general web browsing.

Apple says that the device will be able to run the 140,000-plus applications already developed for the iPhone and Touch, and expects an influx of iPad-specific programs as well in the near future. One of the most noteworthy apps is Apple’s own iBooks e-reading program which will connect to the company’s new online e-book store and compete directly with the popular Kindle from Amazon. Jobs announced during the event that Apple has already struck e-reading deals with five major publishers and expects to add a few more.

Finally, with a price range between $499 and $829, it’s not all that bad in comparison to industry averages for non-Mac laptops, notebooks and netbooks.

However, there are some notably absent features that regular laptop users are accustomed to which also make calling the iPad a larger version of the iPod Touch misleading.  For one, there is no camera capability.   Additionally, Flash, which handles the bulk of video and animation on the Web, does not work on the iPad.  And like its iPhone predecessor, the iPad will only work on the AT&T data network (for now).  Users can add 3G capability for an additional monthly fee, but again, only through AT&T.

It would be unfair to declare the iPad a hit or a failure now or even attempt to give it a comprehensive review considering no one but Apple’s own people have touched and used the device yet.  Those determinations will come later.  But based on what we’ve read and seen in just a day, we can make a few honest and broad assessments of this item.

For one, it’s hard to see Kindle readers giving up their current devices for this one.   The Kindle is lighter and already has a better base of material from which users can draw from.  Secondly, it’s equally hard to envision consumers who are in the market for a new laptop computer choosing the iPad unless they’re in it strictly for entertainment purposes.  Those who use their notebooks for work will be hard pressed to justify using an iPad that doesn’t appear to meet their needs for traditional  business and office software.  Finally, if you already have an iPhone (and thus, are paying extra to AT&T for their 3G coverage), you’re not going to get any breaks by upgrading to the iPad.  You’ll still pay the additional surcharge to run 3G.

Apple claims that the iPad, like all of its other devices, is not geared only for tech enthusiasts, but is designed for everyone.  While that may be true in theory, we just outlined three groups that will probably avoid the device altogether.

So where does that leave the iPad? Quite simply, the jury is still out.  We won’t know how big a dent it will make on the market until it is actually on the market in a few weeks.  There is no denying that the iPad will be a great tool for web browsing and videos,  but is that enough to carry it to the same levels of success enjoyed by the iPhone and iPod Touch?

Time will tell.

Leave us a comment with your thoughts!

Posted in Online Shopping, ecommerce | Tagged , , , , , | 5 Comments »

Q & A Session on the Facebook Store Application

January 27, 2010 by ecommercejunkie

Facebook Store

As we’ve covered more than a few times here at Junkie recently, there is an emerging trend combining e-commerce with the world of social networking.  Retailers are recognizing the potential that the enormous audiences of Facebook, Twitter, etc. hold and they’re looking for ways to incorporate them into their business models.

One of the first such tools offered to retailers to tap into one of those large audiences was the Facebook Merchant Store application from comparison shopping site Sortprice.com.  We’ve linked to the Merchant Store app a few times in other blogs here because it’s really a great tool and one that we think every online retailer should explore.   Recently, we interviewed Doron Simovitch, Sortprice’s CEO and co-founder, to learn a little more about the application, how it came about, and where it fits in the future of e-commerce and social networking integration.

ECJ: What prompted you to build the application and who can take advantage of it?

Simovitch:  We’re always brainstorming and testing new technology as part of our commitment to both merchants and shoppers, and this idea came about as Facebook began growing in popularity. No one else was offering retailers a chance to open a storefront right on their Facebook fan pages and we felt it would be an extremely valuable addition to any merchant’s e-commerce efforts.  Sortprice was already running an app for shoppers so this was the logical progression.

We offer the application as a free benefit to any paying Sortprice merchant.

ECJ: How does it work?  And what differentiates the app from others like it?

Simovitch:  The product listings in the merchant’s Facebook store correspond to their product listings on our actual site, which makes for a pretty easy set-up.  The merchant decides which of their products they want included in their Facebook store; they can add them all or target just a few.  We build the store initially for them with a template design and give them guidance on how to maintain it.  Facebook users will find the store under a special tab on the merchant’s fan page and they can literally shop right there in the store, with all the product listings linking back to the merchant’s own checkout pages.

There aren’t many other applications like this one out there but what really makes ours stand out from the handful of competitors is how flexible it is for the merchant.  As I said, they control the quantity of products in the store itself but we also give them full control over customizing it as they see fit, including the color scheme, logos and slogan placements, and adding their own product category images. Overall it’s a very interactive tool as well because it lets the shoppers build lists of items they like and communicate with others about their wish lists.

ECJ: What has the response been from retailers?

Simovitch:  It’s been overwhelming to say the least.  We’ve had many retailers rave not only about how easy it was to get started with the application, but also how quickly they started seeing tangible results in terms of traffic and conversion rates.  We give them all resource materials and suggestions on promoting and marketing their Facebook stores once we get them up and running and from all indications, the tips are useful because most of our merchants are building successful and interactive shopping communities on their Facebook pages.

ECJ: In your opinion, what are the benefits of retailers expanding to social networking?

Simovitch:  Quite simply, expanding now isn’t an option. It’s a necessity.  So many retailers are branching out and finding new ways to use social networking that if you’re not keeping up, you’re putting your business in peril. Not to mention that if you look at Facebook alone, that’s 350 million users that you’re ignoring if you’re not involved with the site in some way or another.

You never know what the ‘next big thing’ is going to be either so we always recommend that retailers stay on top of the tech and social networking news and keep track of new sites/tools that are coming out. If they’re free or cost-effective, you should explore using them.

Posted in Facebook, Online Shopping, ecommerce, merchant tips | Tagged , , , , , , | 1 Comment »

M-Commerce: An Introduction

January 26, 2010 by ecommercejunkie

Remember when your cell phone was literally just a phone?  Those days are long gone! Manufacturers have stretched their technological innovation to the point where cell phones have become a hub for many daily activities, including shopping.

In that vein, mobile commerce, or m-commerce, is starting to become a very relevant and important component of retailing.  You’ve no doubt noticed news stories popping about merchants launching mobile shopping applications to capitalize on the enormous potential that new smart phones and mobile devices are capable of delivering to consumers.

Mobile shopping is much more than a fad.  Motorola recently did a study that revealed more than one-half of worldwide internet users shopped with their mobile phones during the 2009 holiday season.  And while Generation Y constituted the largest batch of mobile shoppers in the study, Generation X (50 percent of respondents) and Baby Boomers (33 percent) are also catching on, meaning that m-commerce has evolved into a trusted and useful tool for people of all ages. Separate research showed that m-commerce grew by over 388 percent across the retail industry in 2009. As a retailer, that’s a number that’s hard to ignore.

If you’re new to m-commerce, you probably have some questions about it. We’re here to help, as always,with guidance on a few of the leading questions regarding this latest tech phenomenon.

How Does it Work?

In simple terms, just imagine your normal e-commerce site, only slimmed down to work on your cell phone. Generally, these applications only work on smart phones, not your traditional cellular phones that offer some type of web browsing.  If you’ve got an iPhone, Blackberry, or the new Google smart phone, you’re all set.

Now, depending on which ‘store’ you visit, you may not always have the same resources, tools and services available to you on your phone that you do with a traditional website.  It really varies from retailer to retailer.  But in most cases, you’ll be able to browse items, read reviews and make purchases if you so choose.

Some people argue that the checkout process for many mobile shopping applications isn’t user-friendlyand that true in some cases.  But even if you never buy anything, it’s nice to know that you can passtime on that long train ride by window-shopping right on your phone.

Is it Safe?

In a word, yes.  Granted, m-commerce safety and security is an evolving art form, so to speak, as the concept of m-commerce in general is still technically in its infancy.   But using a phone to buy something is no more dangerous than logging on to the web and buying it there.   As we always recommend, you should read up on a retailer’s mobile commerce process before buying anything. Visit the retailer’s site and educate yourself on their m-commerce policies and rules. Look for online reviews from other users to get a gauge for how comfortable they were with their shopping experience.

Phone and application manufacturers will continue to hone m-commerce, meaning it will only become more reliable and safe in the near future.  But there’s no reason to avoid it now because of securityconcerns.

Will I have the same selection I normally would online?

Again, that depends on which merchant you use.  Some have evolved enough that their m-commerce portal mirrors their e-commerce one.  Others don’t have quite the same selection. Still others only provide specific purchase options, like a cup of coffee or a pizza for delivery. As we said, this is a relatively new movement and retailers, just like consumers, continue to feel their way out to discover what works and what doesn’t.

As a retailer, where can I go if I’m interested in launching an m-commerce portal?

That’s pretty simple.  We Googled ‘mobile commerce providers’ and got plenty of result.  We’d suggest visiting the sites of several of these companies and learning how their services differ, as well as determining if launching such a venture is financially feasible for you in the near future.

While m-commerce is definitely growing (as evidenced by the Motorola study), North Americans are well behind their counterparts in Asia, Latin America and Europe in terms of usage.   Simply put, m-commerce is bigger in other parts of the world than it is here right now. But that is almost guaranteed to change, which is a great reason to get a head start on the competition now.

Leave us your comments and ideas about m-commerce below!

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