Mobile Commerce

Category: Mobile Commerce

Amazon makes a move on mobile commerce with its own virtual currency

BWild | May 15, 2013

Amazon aims to set itself apart in the mobile commerce field

Amazon is beginning to feel the weight of mounting competition in the field of online retail. Competition is beginning to heat up as more companies begin embracing mobile commerce for the sake of consumers that rely heavily on smartphones and tablets. Amazon is among the earliest adopters of mobile commerce as its position as an online retailer made the company well suited to meet the needs of mobile consumers. With competition from other retailers, however, Amazon has moved to set itself apart from other companies and has introduced its own virtual currency.

Amazon Coins could be an effective mobile commerce and loyalty tool

Virtual currency is not particularly popular with consumers. This type of currency is most often seen in the world of gaming, where consumers can purchase and use this currency to unlock additional content in the games they enjoy. In retail, virtual currency is somewhat rare as most retailers are content with handling actual money. Virtual currencies are not typically associated with mobile commerce as these currencies are not often associated with mobile platforms of any kind. Amazon believes that its virtual currency, called Amazon Coins, could be quite effective at capturing the loyalty of consumers, especially those interested in mobile commerce, as these Coins can only be used to purchase products through Amazon.

Coins can be used to purchase products from the Appstore

Those interested in using Amazon’s new currency must first purchase the Coins from the company. For 500 Coins, consumers will have to pay $5. The Coins can be used to purchase anything from the Amazon Appstore and are exclusive to Kindle Fire tablets. As such, the Coins are somewhat exclusive, catering to a niche market comprised of those with Kindle Fire devices. While the Kindle Fire has proven to be very popular, Amazon does not expect that the device is so popular that it would encourage consumers to purchase Coins. So, Amazon has decided to give away its Coins for free.

Amazon gives Coins away for free

This week, Amazon has deposited 500 Coins into the accounts of every Kindle Fire user. Amazon expects that the Coins will be well received among consumers as they can be used to purchase a multitude of applications, mobile games, music, and e-books from the Appstore. Moreover, items purchased using Coins typically receive a 10% discount, making the virtual currency more alluring for Kindle Fire users. Whether the Coins will succeed in helping Amazon establish a stronger presence in mobile commerce has yet to be seen.

Alibaba may be showing more interest in mobile commerce

Denny | May 15, 2013

Mobile commerce may be part of Alibaba’s future

Last Friday marked a marked a major milestone for Alibaba, one of the world’s largest e-commerce companies. Alibaba is often considered to be the Chinese version of both Amazon and eBay. While both these companies have a presence in China, Alibaba represents the vast majority of online sales that occur in the country. In 2012 alone, the company reported more than $170 billion in online sales, more than that reported from eBay and Amazon combined. Now, Alibaba is looking to expand beyond China and mobile commerce may be able to help in this endeavor.

Jack Ma announces retirement via concert

Alibaba’s interests in expansion come as the company’s founder and chairman, Jack Ma, announced his retirement. This announcement was made in front of more than 40,000 people that had packed into the Yellow Dragon Stadium in Hangzhou, China, where Ma broke the news of his retirement in a semi-concert setting. Ma is succeeded by Jonathan Lu, who has served as Ma’s right hand for the past 13 years. Lu has some ambitious views for the company’s future.

Alibaba showing strong interest in the mobile sector

Alibaba operates the largest online marketplace, and this marketplace is not restricted to consumers as it caters to businesses as well. With the world becoming increasingly reliant on mobile technology, the prospects of mobile commerce have been gaining more attention. Alibaba has been somewhat aloof of mobile commerce for some time, but the company has been seeing strong competition coming from companies like 360buy due to their ambitious use of mobile commerce services. Consumers are beginning to favor this form of commerce and this interest has begun pressuring companies like Amazon to begin offering mobile commerce services. Alibaba is not likely to continue ignoring this growing trend, especially if its plans for expansion are meant to succeed.

Company may be moving to enter into new markets soon

While Alibaba’s endeavors in the mobile commerce field have yet to be fully revealed, business analysts suggest that the company is beginning to position itself to enter into the European and American markets. Over the past several months, the company has been purchasing stakes in prominent mobile-centric companies, such as Autonavi, creators of China’s most successful map application. The company has recently launched its own mobile operating system as well in order to better connect with mobile consumers.