E-commerce News

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!