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Posts Tagged ‘mobile commerce’

Even the most die-hard online and mobile shopping enthusiasts would probably concede that the biggest drawback in using such channels to buy clothing and apparel is the inability to actually try the merchandise on.

Sure, advancements in product photo and video displays have helped some but consumers more often than not want to see what a piece of clothing looks like on their body before deciding to buy or not.  In that regard, brick and mortar stores have had a distinct edge over their e- and m-commerce counterparts simply by virtue of being able to offer the low-tech resource of a fitting room.  But that edge may be a fleeting one.

Marketing and technology company Weyrich Enterprises this week launched a new mobile application called Divalicious that allows a person to upload their own full body image onto a virtual mannequin.  Shoppers can then take clothing and accessory images and place them over the mannequin for an accurate preview of what they’ll look like in the wares they’re considering buying.

This form of augmented reality, which relies on a smartphone’s camera to alter imagery, has already been introduced by several companies before, most notably eBay.  What makes Divalicious interesting though, is how expansive a shopping experience it can offer: consumers can browse product images from more than 300 fashion brands, mixing and matching brands and specific products along the way, almost as if they were at the mall.

“With this application, you no longer have to go to the stores to see what you would look like with a dress from BCBG, shoes from DSW and a handbag from Saks.  The clothes are all in one place, not in three different stores,” says Rich Kessler, chief technology officer at Weyrich Enterprises.

Quite a few big names have already signed up to offer their products through Divalicious, including Zappos, Macy’s, Victoria’s Secret, Urban Outfitters, Gap, Calvin Klein, Nike, Prada, Steve Madden, Ralph Lauren, American Eagle Outiftters, Nine West and more.

Weyrich worked with Sugar Inc.’s ShopStyle comparison and social shopping site to bring Divalicious to life.  Products are listed on the application as links thanks to ShopStyle’s product data feeds, and shoppers are taken to a mobile-optimized product page hosted by specific retailers when they click on those links.  Transactions can be quickly and easily completed with the merchant directly and the shopper can return to any area of Divalicious once the purchase is complete.

If any of our readers have already tried out Divalicious, we’d love to hear what you thought of it—leave us a comment!

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We’ve covered the gradual rise of m-commerce as a viable consumer shopping preference many times here.  And while all signs point to continued growth and popularity of mobile shopping in the near future, have you ever stopped and  wondered just how this shopping phenomenon evolved?

A new mobile shopping survey by Experian’s PriceGrabber comparison shopping engine does just that.  PriceGrabber’s report, which polled nearly 8,000 individuals throughout the month of March, paints a picture of widespread smart phone adoption by consumers, coupled with a higher prioritization of finding the best deals available as the driving forces for the m-commerce environment as it stands today.

“Mainstream consumer adoption of smart phones, coupled with a consumer focus on getting the best deal, has helped to create a culture where consumers are becoming more and more reliant on their phones for their shopping needs,” says Graham Jones, general manager at PriceGrabber.  “With a growing number of consumers utilizing their mobile phones to purchase goods and services, retailers must adapt to this technology quickly or be left behind.”

According to PriceGrabber, the first year of widespread consumer adoption of Web-enabled phones was 2007, when 11 percent of consumers purchased their first smart phones.  From there, adoption continued to grow: 16 percent made their first smart phone purchases in 2008, 22 percent in 2009 and 20 percent in 2010.

The survey also revealed that the consumers had downloaded an average of 21 applications for their smart phones.  Of these 21, further analysis showed that at least three are shopping related.

Other highlights from the survey reflect a diverse range of shopping activities being conducted on smart phones:

–72 percent said they use their phones to access and receive coupons, special deals and price alerts;

–55 percent use them to browse the web;

–34 percent use their phones to compare prices online while they shop in a store;

–33 percent find nearby products to buy using their phones;

–21 percent employ bar code scanning apps to find the best price available

What about you? Do these findings match up with your own mobile commerce activities?  Let us know with a comment and have a safe and happy Memorial Day weekend!

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The tablet computer is a relatively new entrant into the consumer electronics marketplace, and in the grand scheme of things, only a fraction of Americans currently own and use one.

Yet, despite their smaller user base, tablets are being used to research products and make purchase online with such frequency that they have already overtaken smart phones as the preferred device for such shopping activities.  So says newly-unveiled research by The E-tailing Group, as reported by eMarketer.

According to research, one out of every ten tablet computer owners has reported using their device for product browsing or purchasing online every single day.  By comparison, only 6 percent of smart phone users could say the same.

Tablet owners aren’t just surpassing their smart phone counterparts when it comes to how often they rely on their device to shop;  they’re also using tablets to buy more stuff.  Almost one in four tablet users have made at least six purchases with them in the past six months, compared to roughly 15 percent of smart phone users.  Smart phone users seem much more likely to NEVER use their devices to shop online at all than tablet customers as well, according to the research.

What’s more, tablet-based purchases outnumber smart phone transactions consistently over almost all major product categories.  Only a small portion of more ‘mobile-friendly’ categories such as event tickets, food and music/videos favored smart phone buying.

Finally, tablet owners seem to be more satisfied with the shopping experiences they have with their devices than smart phone users.

All of this comes as a bit of a surprise to us, particularly given how large a gap there is right now between the number of tablet and smart phone users.

According to eMarketer, the U.S. tablet ‘installed base’ of users represented a mere 3.1 percent of the population in 2010. That figure is expected to more than double to 7.6 percent by the end of this year.  But even then, smart phones will still outnumber tablets substantially:  eMarketer estimates that smart phone ownership will swell to more than 23 percent of the population in 2011, up 4 points from last year.

Now, granted, tablet computers have one major thing going for them that would seem to nudge them ahead of smart phones when it comes to effective shopping:  larger, more detailed screens.  In fact, one of the biggest hang-ups about mobile commerce is that smart phone screens don’t allow a shopper to get the greatest look at what they’re shopping for.  Nevertheless, while the iPad’s introduction last year came with a widely-held belief that the device would substantially change (or improve, depending on your opinion) e-commerce, even the biggest tablet fan probably didn’t see this kind of data emerging so soon.

But what do you think?  Smart phone or tablet, which is best?  Leave us your comment below!

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Not to be outdone by eBay’s acquisition of a mobile advertising services provider last week , online marketer ValueClick has picked up one of its own.

ValueClick announced today that it will pay about $70 million in cash for the brand-focused mobile ad network Greystripe, Inc.  With its own online ad network (ValueClick Media) and the affiliate network Commission Junction already in the mix, the new move should provide ValueClick with immediate results a fast-growing U.S. mobile  advertising market that’s worth more than $1 billion already.

“Greystripe accelerates ValueClick’s move ‘up the marketing funnel’ with brand advertisers and gives ValueClick Media immediate scale and expertise in the large and fast-growing mobile ad market,” said Jim Zarley, ValueClick CEO.  “We see great traffic and revenue synergies between ValueClick and Greystripe, and we’re looking forward to working closely with the Greystripe team to take full advantage of the opportunities that this combination offers.”

So what exactly is ValueClick getting for that $70 million?

Greystripe, which is headquartered in San Francisco and supported by office in New York, Los Angeles, Chicago, Seattle and Detroit as well, has a proprietary advertising platform that serves up billions of rich media impressions to more than 30 million touch-screen devices users nationwide through 3,500 different application titles and mobile sites.  The company has also established solid relationships with a host of Fortune 500 advertisers across a host of verticals, including retail, entertainment, technology, consumer products and automotive.

All of that bodes well for ValueClick, which expects Greystripe to account for between $24-26 million in revenue for the year.

As a result of the transaction, Greystripe’s management team and pool of employees will be retained and the group will now be run as a wholly-owned subsidiary of ValueClick Media.

“All of us at Greystripe are proud of our accomplishments, and joining ValueClick positions us to accelerate our rapid growth in mobile brand advertising,” said Michael Chang, CEO of Greystripe.  “We are thrilled to continue to serve our major brand clients as a mobile rich media leader while leveraging ValueClick’s breadth and depth in online marketing.”

As always, leave us your thoughts and comments!

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The steady stream of e-commerce acquisitions keeps rolling along as eBay has announced a plan to buy Where, which provides advertising services, mobile apps and search capabilities that enhance local shopping.

Full terms of the deal were not disclosed by either party.  It’s expected to close officially by the end of the second quarter of the year.

“By delivering personalized, hyper-local advertising, offers and deals to shoppers on their mobile phones, we see a huge opportunity for retailers and brands to reach more buyers, and for consumers to get more choice and value when they shop,” eBay said about the deal.

Where’s popular mobile application enables shoppers to search for products or services from local merchants and provides recommendations to consumers based on their shopping history and preferences.  It also serves up advertisements to individuals from local retailers as well.

The company boasts about 4 million registered users and partnerships with more than 120,000 retailers.  Where claims to handle more than 2 billion ad impressions each month, which reach a network of 50 million mobile users.  The Where app is available for iPhone, BlackBerry, Android, Windows Phone 7 and Palm WebOS phones.

The first priority once the deal is finalized?  Making PayPal available through Where’s mobile application.

“As a first step, we plan to integrate PayPal into the Where mobile app to make it even easier for PayPal customers to take advantage of the local deals,” said Amanda Pires, senior director of global communications, brand and experimental marketing at PayPal,in an eBay blog post.

Bringing Where on board continues a string of pickups by eBay aimed at broadening its mobile offerings, a reflection  of the growing demand for fun and useful m-commerce resources. Last year eBay bought local retail search engine Milo  and Red Laser, which develops mobile bar code scanning application for comparison shopping in brick and mortar stores.

All of eBay’s moves in the past 12-18 month also seem to point towards the company trying to compete directly with the likes of Groupon, Living Social and even Facebook for a larger slice of local shopping and advertising revenues.

Leave us your thoughts and comments!

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Retailers who have yet to jump into the m-commerce game are about to have a new option from a well-known entity to consider.

AT&T Wireless announced that it has teamed up with Austin, TX-based mobile web developer Digby Inc. to roll out a service that will empower merchants to create full-scale mobile commerce sites and applications.

The partnership will build on AT&T’s existing offering to retailers, a program that allows them to send out mobile bar codes and text messages on special promotions and discounts to registered users.  This integration of Digby Mobile Commerce and AT&T’s Mobile Barcode Services will result in one of the most diverse m-commerce packages available to the retail community.

“Digby is pleased to provide AT&T’s business customers with a comprehensive platform to create rich and personal mobile experiences, so retailers can interact with mobile consumers—virtually anytime and anywhere,” says David Sikora, Digby’s president and CEO.  “By joining forces with AT&T, we can help retailers take a strategic approach in enabling mobile commerce and mobile in-store customer engagement.”

At its core, the service enables merchants to build m-commerce sites that include full product catalogs and rich media product images and information, as well as create specialized mobile applications that, for example, target loyal customers with special promotions and discounts.

But merchants who use the new Digby Mobile Commerce from AT&T package will be able to take advantage of a number of cool m-commerce features too.  One such feature: retailers can provide detailed product information, pictures and even rich media via the Digby platform whenever a customer scans a bar code via an application or mobile site while in stores.

Smartphone GPS capabilities can also be employed to send promotions and product data to shoppers the moment they walk into a store as well.

Adding extra peace of mind, the new platform is already Payment Card Industry (PCI) Level 1 certified, which means it meets the strictest requirements possible under PCI’s data security standards.  The PCI council, formed by the major credit card companies, oversees the protection of electronic payment card account data.

Leave us your thoughts and comments!

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We’ve predicted time and again that mobile commerce would continue the coming out party it enjoyed last year here in 2011.  And even though we’re not even out of January yet, it seems as though big things are already in motion that could have m-commerce exceeding even the largest of expectations.

Case in point: two of the industry’s heavy-hitters are joining forces to grab a bigger slice of the mobile shopping pie.

eBay’s PayPal has brought in mobile commerce technology provider Usablenet Inc. to integrate its Mobile Express Checkout offering with the latter’s full range of services, including its mobile shopping sites and apps, Facebook and tablet computer applications and kiosk systems.

As a result of the partnership, PayPal customers will enjoy a more streamlined checkout.  After logging in with their account information, they will be able to complete transactions with a single touch, as the system will store their default shipping and billing information automatically.

“Usablenet empowers top e-commerce merchants throughout the world,” said Bill Zielke, PayPal’s senior director of merchant services.  “By integrating PayPal’s Mobile Express Checkout with Usablenet’s offerings, businesses can enable consumers to speed through checkout securely using their mobile phones.”

The partnership brings together two entities that have enjoyed tremendous success in their respective fields.

Usablenet, founded in 2000, boasts almost 200 Fortune 1000 companies as clients from a wide range of industries, including airlines like American, Delta and Jet Blue, as well as Amtrak, FedEx, Crutchfield, Hilton Hotels, Estee Lauder, Victoria’s Secret, and more.

And of course, PayPal is the unquestioned leader in online payment systems, with more than 90 million active users around the globe.  The eBay arm saw substantial growth in mobile payments in the second half of 2010 as well.   Online payment volume during the year’s third quarter was up by more than 25 percent from 2009, largely due to more mobile transactions.

The 2010 holiday shopping season saw PayPal enjoy even stronger mobile growth, reporting a 300 percent increase in overall mobile payment volume and the company finished out the year with nearly $750 million in total mobile payments.

Got feedback? Leave us your comments!

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Even though the calendar reads 2011, we’re of the mindset that there’s a lot to still be learned by looking back at the year that we just closed out.

There are trends and there are fads and nowhere is that more evident than in the tech world.  But when we look back at 2010, there are two major developments that took place that had a profound impact on the industry and also laid the groundwork for a new era in retail.

One, which we have chronicled many times here on Junkie, was the rise of social shopping (aka social media integration) that saw dozens of retailer-geared applications and tools emerge for Facebook and Twitter become a viable and effective marketing tool for merchants of every type.

The other was mobile shopping, or m-commerce.  While shopping on a mobile phone certainly wasn’t invented in 2010, you could definitely say that m-commerce had it’s coming out party last year. If previous press reports haven’t been enough to convince you of that fact, here’s some more proof.

According to new research from comScore, nearly 7.3 million Americans accessed mobile commerce sites or apps one to three times a month during a three-month time period ending November of 2010.  That’s roughly 3 percent of the 234 million users that comprise the entire U.S. mobile phone population.

During that same time, 3,853,000 people accessed mobile sites or apps at least once a week (1.6 percent of the mobile population), while just about 2.1 million went shopping on their mobile phones every single day.

Overall, 8.6 million mobile users have accessed an m-commerce site and nearly 4 million have shopped on a mobile application.  So which resources are they using the most?   comScore says the top ten most-visited sites and applications are as follows:

1. Amazon
2. Walmart.com
3. Best Buy Co.
4. Target Corp.
5. eBay Inc.
6. Barnes and Noble.com Inc.
7. Overstock.com Inc.
8. Buy.com Inc.
9. Apple Inc. (excluding the App Store)
10. Newegg Inc.

Clearly, these are the companies on the leading edge of the m-commerce movement but there are plenty of others out there.  With mobile phones continuing to evolve and even more individuals becoming smart phone users, 2011 is looking like an even bigger year for m-commerce.

The question is, retailers, are you going to part of it?

We welcome your feedback as always!

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If you’re a retailer or merchant, you’re probably using this week between Christmas and New Year’s to catch your breath.  And hey, we can’t blame you!   It was a banner holiday shopping season for both the retail and e-commerce industries, so chances are you were quite busy up until December 25th and deserve a little bit of down time.

Keep in mind though, this isn’t a time to rest on your laurels.  The show, as they say, must go on! Before you know it, the calendar will read 2011 and it will be back to business as usual.  Since this week tends to be a bit more quiet than most, why not use it to catch up and get yourself ready for the year ahead?  We’ve compiled some helpful tips on things you can work on this week to do just that so you’re ready to go full-force next week.

Get your House in Order:  it’s easy to let the little things slide some when you’re in the midst of holiday madness.  Use this time to catch up on things like payroll and bills or vendor/partner agreements and contracts for next year.  Remember that tax season isn’t far off either so everything you can do now to be prepared for April 15 is a step in the right direction.

Take Inventory, and Liquidate if Necessary: look around and see what merchandise you might have remaining in high quantities after the holidays.  Are there specific seasonal or holiday items that you think you can unload quickly?  If so, put them on sale this week and add some serious motivation for your shoppers to snatch them up (think a “2 for 1″ deal or free shipping, etc.)

Update those Customer Lists: if you were a savvy retailer in 2010, chances are you compiled quite a few customer email addresses for your mailing list.  What good is having all those emails though if you’re not going to use them?  Make sure your contact lists are updated and correct before you begin sending out messages next year.  Take some time to upload any emails you haven’t yet added to your list and also make sure that anyone who has opted out of your messages has been removed from your database.  You don’t want to start the New Year off by violating any SPAM laws!

Plot your 2011:  in that same vein, start drafting your strategy for next year as well.   Two very big trends emerged in e-commerce in particular in 2010–mobile shopping and social media integration.  Of the two, getting a social media presence is probably the quicker option of the two. Retailers can (and have!) easily set up Twitter accounts to broadcast specials and deals, and we’ve chronicled all of the options out there for taking your retail operation to Facebook before.  If you’re not using social media, you’re losing ground to the competition so look into those options this week.   Mobile commerce options will definitely cost you more but could be worthwhile next year and in the future as more and more smart phone users begin feeling comfortable about shopping with their mobile devices.  Do some research on mobile commerce solutions providers and/or check out your competitors to see what, if anything, they’re doing with this very important business component.

Start Planning for the 2011 Holiday Season Now:  the best ideas are the freshest ideas.  Spend about an hour this week on an honest evaluation of your holiday operations this year.  What worked?   What didn’t work?  What would you do differently?  Take that evaluation and put together a little note to yourself to be reviewed again in advance of next year’s holiday shopping period, say in late October.  Add some ideas you have now for what you can do next year as well. By relying on recent memory to shape your strategy next year, you can avoid repeating any mistakes that were made and also ensure that you’re prepared when the madness begins again!

Got some more merchant tips? Leave us a comment!

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In another sign of the changing times within retail and e-commerce, one of the industry’s most prominent bar code technology providers is reporting that there was enormous year-over-year growth in the usage of its mobile scanning application during the first week of the holiday shopping season.

Scanbuy Inc.’s mobile application ScanLife reportedly generated 30 times more consumer scans this year than during the first week of the holiday season in 2009.

Furthermore, referrals to retail sites from the application resulted in almost three times as many sales between Nov. 26-27of this year than during the same time frame a year ago.

“We’re pleased so far by the data we see in terms of mobile bar code scans this holiday season,” says Mike Wehrs, CEO and president of Scanbuy. “We look forward to these strong numbers persisting as consumers continue to see the benefits in mobile bar code scanning and continue to shop using them and spreading the message to their friends about the benefits of mobile bar code scanning while shopping.”

Scanbuy did not give specifics on how many purchases were actually completed as a result of the scans or how many items total were scanned.  The company did say, however, that books, electronics and housewares were the three most purchased categories.  Toys, not surprisingly, were the category scanned the most frequently.

The company also said that most of the purchased as a result of the scans were between $10 and $30.

Mobile bar code scanning applications have risen quickly in popularity as more and more consumers are becoming smart phone users.  The apps give shoppers a more active role in price checking and product research and from what we hear, they’re pretty fun to play with too!

Scanbuy offers both 1-D and 2-D mobile bar code scanning applications.  Free to consumers, the company says ScanLife has already been downloaded more than four million times, which would certainly put it near the top of the list for most popular apps in that particular area.  Both the 1-D and 2-D versions are available for leading smartphones such as the Droid, Blackberry and iPhone devices.

Scanbuy also counts 2-D bar code marketing campaigns as part of its core business, running such campaigns for clients like UPS and Target.

Did YOU use a scanning app this holiday season? If so, let us know how it went!

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