What is M-Commerce?
Mobile commerce (aka “m-commerce”) refers to consumers shopping via wireless handheld accessories such as cell phones and PDAs. An m-commerce site is a version of a company’s webpage that is designed to fit within the constraints of a cell phone or PDA. (For more information on what makes a site m-commerce friendly please see “Make Your Site iPhone Friendly.”) While some m-commerce sites are set up to drive sales, the majority of retailers utilize m-commerce primarily as an additional branding channel.

Where is M-Commerce Now?
An article* written in 2007 for Internet Retailer Magazine stated, “The presence of e-retailers with mobile sites is growing; but just like Internet adoption in the mid-‘90s, e-retailers today are taking baby steps toward initiating a mobile presence. At the moment the majority of m-commerce transactions are limited to mobile device add-ons like ringtones, games, wallpapers, and screensavers.” Recent studies conducted earlier this year prove that m-commerce is still fairly small today- with approximately 3.4% - 3.9% of American mobile users utilizing m-commerce.

What is interesting, however, is what these consumers are buying. While the number or consumers utilizing m-commerce platforms has not changed too drastically, the purchases have. Of those that have made purchases via their mobile phones 58% purchased digital content for their phones, 51% purchased consumer electronics, 37% purchased computers/laptops/related equipment, 36% purchased books, 31% purchased apparel, and 20% purchased jewelry. This illustrates that consumers who use their mobile phones to make purchases are now purchasing as if they were in a retail store.

This is a dramatic difference in purchasing patterns is likely a result of increased consumer confidence in the security of m-commerce. A recent poll found that approximately 71% of consumers believe it is “very safe” or “fairly safe” to make a purchase via mobile phone.

Where is M-Commerce Going?
M-commerce may not explode in the next few years, but it is likely to continue growing steadily as more advanced wireless handheld accessories become available, more applications are released to facilitate “anywhere shopping,” and retailers get on board with the technology. The biggest challenges we will see with m-commerce over the next few years will be a continuation of the struggles that retailers have faced thus far: user experience barriers, security concerns, and negative perceptions about the value of m-commerce investment.

M-Commerce Advice
Moving forward ecommerce companies should do two things: get educated about m-commerce, and leave room for m-commerce in their marketing plans. First of all, find out as much as you can about m-commerce now and stay briefed on the latest news as advancements are made so that when m-commerce starts to become vital to your business you are ready with strategy and insight. Secondly, begin developing a marketing strategy that will leverage your m-commerce website when it is time to invest in it.

*Siwicki, Bill. “M-commerce: What it is, where it’s at, when things may happen and what stands in the way.” Internet Retailer. May 2007. Pages 14-16.

-Kate Pierce eCommerce Specialist

Bookmark to: