For Mobile Commerce: The Year Of Convergence And ContextPosted by admin on January 19, 2012
Guest post in Forbes written by John Caron, Senior Vice President of Marketing at Modiv Media.
If no one else will say it, I will. Contrary to popular opinion, and what we may want to believe as mobile and retail enthusiasts, consumers have not been buying billions of dollars of products via mobile commerce. The majority of purchases, easily 90% or more, have actually been mobile-enabled e-commerce. Not mobile commerce. There is a difference. While subtle, it’s extremely important for retailers to recognize the difference because it’s going to change quickly.
Here’s a quick perspective. If you buy a TV via your iPad, is that mobile commerce? In my opinion, no. Yes, a tablet is a “mobile” device, but the experience the purchaser had was with a tablet-optimized website. Ditto for the person who bought a Mercedes SLR via eBay mobile on their smartphone (for $240,001). This is mobile-enabled ecommerce. Not mobile commerce. For the retail and mobile industries to better understand (and report on the growth of) this crazy thing called mobile commerce, or m=commerce, we need to break it out into three categories
- Mobile e-commerce: Transacting with an e=commerce site via a mobile device. Examples include: eBay mobile, Amazon mobile, the Tesco app in Korea, and the majority of mobile commerce “apps.”
- Mobile payment: Payment using the smartphone as the conduit. Examples include: Google Wallet, PayPal, and LevelUp.
- Mobile commerce (in-store): The ability to purchase physical goods in the store via an app that interacts with the store’s point-of-sale system (and bypass the checkout process). Examples include SCAN IT! Mobile from Stop & Shop, Starbucks Card Mobile app, and Chipotle Mobile Ordering App.