2011 so far has seen a significant leap forward in the development of mobile commerce. Most large retailers are now exploiting the opportunities in the mobile channel and those who haven’t are being left behind. Although a comparatively new technology, consumers now expect to be able to access and interact with their preferred retailers via their mobile phone. A report from MEF, an industry trade body claims that a huge 72% of people are now using mobile internet on a daily basis globally. The early adopters have seen the biggest return after realising the potential of mCommerce and swiftly establishing themselves in the channel. 

Web giants Amazon and eBay created mobile presences in 2010, but have implemented significant developments throughout 2011. Amazon were the first to offer cross platform customer experience, with users of their optimised mobile website able to add products to their basket via their mobile, then access the site later on their PC in order to complete the transaction. They also developed custom built apps for Android and iPhone operating systems to deliver a better user experience for a few territories to start with, now rolled out globally. eBay similarly produced an app which enabled users to carry out transactions, either purchasing or selling products. Through these advancements, mobile commerce has transcended its previous function of allowing users to purchase digital content and moved into the physical goods channel.

The incentive for retailers to move into the mobile channel is now beyond doubt. Mobile internet usage is expected to overtake desktop browsing by 2014, with 50% of all local searches now being done via mobile. 17.99% of men and 10% of women between the ages of 13 and 44 currently attempt to access an online retailer on their mobile and 25% of them say that if they cannot access their preferred retailer’s website on their mobile they would go to a competitor and not attempt to access that site again. 

Of course the first step towards a mobile presence for any retailer is ensuring that their website is properly optimised for a smaller resolution and will responsively resize for a mobile browser. However, the development of a custom application should not be sacrificed, despite a potentially high initial cost. This is where most retailers appear to falter, as effectively integrating their existing eCommerce system with a front end mobile app or site can be tricky. More brands are now choosing a complete platform which delivers the best customer experience via exposed APIs for products, transactional systems and management of accounts. 

A customer downloading a retailer’s app can be taken as a sign of positive intent. The user wants to interact with the company and is considering purchasing products by utilising this application. The app then becomes a feature on the customer’s phone, meaning they will be much more likely to check back for new products, rather than simply bookmarking the brand page on their mobile browser. Effective user experience design is crucial to this aspect, as a unique and fun interface will engage the user much more intently. 

With new HTML5, CSS3 and Javascript web standards, a whole new world has been opened up to app developers. Creative options such as product drag and drop, inline video and 360o product view are now achievable. eBay have recently announced a new mobile image feature, where users can take pictures of products they like the look of and the app will then suggest similar products available through the site. 

Another breakthrough threatening to transform the way mCommerce is viewed is Google Wallet. This application for Google’s Android OS allows users to pay using either Citi MasterCard or a Google prepaid card and then make payments by simply touching their phone to a pad after putting in a pin number. Only available in the US currently, the company plan to roll the technology out to the UK too. There is a lot of discussion surrounding the announcement as to how much actual demand there is for this application. However, thinking outside simply making payments, customers could download vouchers to their “Wallet” and then use it directly by swiping in store. Users could even acquire deals from posters that they touch their phone to, opening up a number of multichannel opportunities. There is still a long development path for this technology so it will be interesting to see where it goes. 

This is a guest post by James Bentham on behalf of Mobile Interactive Group, who specialise in mobile technology and service provision. He has been creating web content for over 5 years and enjoys writing and reading about technology, business and music.