Tag: mobile commerce

eBay sees major promise in m-commerce

| December 13, 2012

 

eBay m-commerceeBay expects m-commerce to become a major tool for the retail industry

Last month’s Thanksgiving shopping weekend has provided mobile commerce with a huge amount of credibility, especially among retailers that have been looking to engage mobile consumers in a dynamic way. Indeed, that single shopping weekend may have provided mobile commerce with enough momentum it needs to become the most preferred tool of the retail industry. eBay, one of the world’s largest online retail entities, believes that mobile commerce is reaching the point where it may replace more traditional forms of commerce and even e-commerce itself.

Mobile business growing exponentially

Steve Yankovich, vice president of mobile for eBay, recently spoke with CNBC concerning the growth of mobile commerce. According to Yankovich, mobile growth has significantly exceeded the company’s expectations. Four years ago, mobile commerce was little more than an idea. Now, eBay expects to see mobile sales on its eBay Mobile platform exceed $10 billion within the next few years.

Convenience may be a major driving factor behind m-commerce

The key to the success of mobile commerce may lie in the convenience of the concept. Consumers are becoming increasingly reliant on their mobile devices to function in daily life. As this trend picks up momentum, consumers are beginning to look for ways to turn their smart phones and tablets into payment platforms for the sake of convenience. A mobile device can, with the proper software, serve as a type of digital wallet, storing a consumer’s financial information, coupons, tickets, and other such virtual items in a singular space. This allows consumers to access all this information quickly and efficiently.

Competition on the horizon

The success of mobile commerce does not mean clear sailing ahead for eBay or the other companies that are investing heavily therein. Companies are expected to begin heavily competing with each other for a significant share of consumers that are interested in mobile commerce. eBay has a decent head start thanks to its PayPal unit, but Google and Isis are expected to begin appealing to more consumers as time goes on.

Mobile commerce hits a wall in India

| December 13, 2012

 

India Mobile CommerceMobile commerce may be facing serious challenges in India

Mobile commerce may be a rapidly growing phenomenon, but it if facing hard times in India, which could be a sign of things to come in the future for the rest of the global market. Mobile commerce is a relatively simple concept: Consumers using their mobile devices to purchase products and shop both online and in-store. This concept has won the adoration of consumers around the world, but its simplicity belies the complications that are associated with running a mobile commerce business.

Problems in India may foreshadow future challenges

In India, mobile commerce has hit a sheer drop-off, in terms of adoption and support. While consumers are still showing a great deal of interest in mobile commerce, this interest largely revolves around well established e-commerce gateways that most consumers already have extensive experience with. Most major retailers offer some form of mobile commerce service to consumers, and this is not necessarily good news for smaller ventures.

Data shows mobile commerce start-ups have high mortality rate

According to data from Microsoft’s India Accelerator Program, which provide services to technology start-ups throughout India, some 379 new technology product start-ups launched in the country before October of this year. Of these, 193 were e-commerce firms that specialized in some aspect of mobile commerce. Approximately 87 of these firms no longer exist, either because they have been absorbed by larger companies or they simply could not find traction with consumers. Investors becoming leery of the prospects of mobile commerce is cited as a major reason why these firms have faced failure.

Investors leery of supporting new start-ups

Investors are beginning to show hesitance when it comes to mobile commerce. Start-ups entering the mobile commerce field often make promises that are difficult to keep and investors backing companies that end  up failing face significant financial losses. If start-ups cannot compete with major companies like Google, which has established a strong presence in mobile commerce, they are not likely to find the traction they need to be successful, thus leading investors to question the prospects of supporting mobile commerce ventures.