Though this may have been possible for the first generation of mobile efforts, times have changed.
When retailers first started to discover that mobile commerce was going to be vital to their survival, many of them responded by using their standard websites and optimizing the same content and layout so that it would be compatible with the smaller screens and navigation requirements of mobile devices.
This was a strategy that was somewhat effective for a while, but the channel has evolved since then.
The world of mcommerce is traveling at a breakneck speed, and it is continually in flux. The more brands, companies, and marketers discover about what consumers are expecting from this channel and what is effective, the faster it grows. Now, the websites that were originally optimized so that their standard formats would fit on smaller screens are being found to be inadequate within the sector.
Simply repurposing regular sites for mcommerce just isn’t enough for the mobile consumer.
An mcommerce website should not simply be a cookie cutter copy of the site designed for e-commerce. Before the mobile version is released, it is vital for companies to determine what features are truly central for driving engagement, and to make those elements the heart of the smartphone and tablet experience. For example, store locators – which are often considered to be rather secondary on standard sites – are among the most important features of a mobile commerce enabled website, and should be placed front and center in many instances.
A site meant for a smartphone needs to be stripped down to its bare minimum while still providing a rich and engaging experience. Functionality, compatibility, load time, ease of navigation, and driving consumers to act are all critical to mobile. Unlike the PC experience, it is isn’t simply a matter of placing information in front of the consumer. It needs to appeal to the individual on the go, with quick and simple mcommerce options that will be highly relevant and appeal on a personal level. Companies must never lose sight of this perspective if they wish to get the most out of what the channel has to offer.
E-commerce business losing traction with investors
Black Friday has passed and that has left many retailers preparing for the remainder of the holiday season. While Christmas still looms, Black Friday was the most important day for the retail industry. Now that that day has passed, retailers can enjoy some mild relief before gearing up to engage consumers again in December. Mobile commerce helped make this year’s Black Friday a major success, and the growing popularity surrounding the concept has lead to many start-up e-commerce businesses being formed. Investors have seen the potential of these start-ups and some are suggesting that they are overvalued.
Mobile commerce continues to spark new businesses
Over the past 18 months, mobile commerce has sparked the founding of several e-commerce platforms that had promised to provide innovative service to consumers and niche markets. Many of these platforms received a proverbial tidal wave of investments that helped them reach their target audience. Unfortunately, most of these platforms failed to meet the expectations of investors, thus yielding modest returns at best. The lackluster performance of some platforms has not stopped the formation of new e-commerce businesses, however. Finding investments may soon become difficult for these start-ups.
Failed e-commerce ventures create unease among investors
Though the e-commerce sector shows promising growth, investors have seen a string of failed online retail ventures from groups like Facebook, Zynga, and Groupon. Smaller companies that promised major returns were unable to deliver, thus making many investors leery of e-commerce ventures and those that revolve around mobile commerce. Former eBay executive Dana Stalder, who is now a partner at Matrix Partners, an investment firm focused on software and communications companies, suggests that there is “inflated valuations” concerning e-commerce ventures.
Capital-intensive business may find lack of support
Stalder notes that most e-commerce businesses are complex and require significant capital to operate. Inventory and shipping costs make it difficult for new businesses to reach a large audience. Even with financial backing, these businesses can easily spend more than they make, thus making them less lucrative for investors. Many of these companies have created an uneasy investment climate for the online retail industry, which could make it exceedingly difficult for new e-commerce start-ups to find the backing that they need.
