Mobile: The Next Frontier in Online Shopping

eMarketer: Retailers in all product categories have a place in mobile commerce

NEW YORK (Feb. 19, 2010) -- For mobile commerce to gain critical mass, consumers must be able to at least access the Internet from their mobile phones.

More than 80 million US mobile phone users will access the Internet from their device in 2010, eMarketer forecasts. That’s nearly 35% of all mobile phone users and almost 27% of the US population. By 2013, almost 50% of mobile phone subscribers will have Internet access.

However, Web-enabled mobile phone users are much more likely to use their devices to get weather forecasts, read news, find movie times and bank online than to buy products.

Bargain hunters in a store can check the mobile Web to see whether an item can be bought more cheaply from another retailer. Sociable consumers can share something of interest in a store with friends via a text message. Research-minded shoppers can enrich the in-store experience by using the mobile Internet to get more product information.

Mobile phone users say they would make more purchases if the process were not so cumbersome, products were easier to find and their devices supported secure credit card transactions.

In response, a number of retailers and third-party developers have introduced mobile apps that give consumers powerful new shopping tools and added convenience. But most retailers are either standing on the sidelines or are in the midst of planning their mobile commerce strategy.

“Apps offer a richer, faster customer shopping experience than mobile commerce sites because the software resides on the smartphone, and apps can be integrated with a phone’s GPS navigation and address book features,” said Jeffrey Grau, eMarketer senior analyst and author of the report, “Mobile Commerce: Ahead of Its Time.”

“This is why apps are at the leading edge of mobile commerce innovation,” Mr. Grau added.

Retailers expect the primary benefits from mobile commerce will be improved customer loyalty and greater customer spending. But retailers walk a fine line here. What some consider personalized service, others consider an invasion of privacy.

Source: eMarketer