Tag: us mcommerce

Forecasters had previously predicted that shopping over smartphones would cut back on in-person purchases.

As mobile commerce continues to become increasingly popular among retailers and consumers, alike many forecasters had expected that this would start to negatively impact the amount of shopping that would be occurring in brick and mortar store locations, but recent data is showing that this is not the case.

Many store owners were becoming afraid that mcommerce might have represented their demise.

That said, despite the fact that mobile commerce is growing ever stronger, it is online shopping as a whole that poses the real threat to in-person shopping. A new Gallup poll has indicated that purchasing over smartphones and tablets hasn’t had any real impact on the buying habits at brick and mortar locations, when it comes to the majority of consumers in the United States. In fact, most people who took part in the poll stated that there has been no change in the shopping that they do within actual retail store locations.

This indicates that the growth of mobile commerce is occurring specifically within the online space.

Among the respondents, 59 percent said that they have not altered their retail store shopping. An additional 22 percent said that they shop in-person more often now, because of their smartphones and tablets. That said, 19 percent said that they are shopping less frequently at retail store locations.

As e-commerce becomes stronger, retailers with brick and mortar locations have found that they are experiencing an increasing level of challenges. This is partially due to the fact that their online competition – particularly giants such as Amazon – have notably lower overhead costs, simply due to the very nature of what they are. This can, according to officials from Gallup, allow those online stores to offer the exact same products at meaningfully lower prices.

Another poll that was conducted by Gallup during the holiday shopping season identified “showrooming” as a potential threat, as consumers have a look at a product in a retail store and then compare prices on their smartphones and purchase it over mobile commerce for the lowest cost. That said, as of yet, retailers seem to be embracing the power of mobile marketing and mcommerce and don’t seem to be experiencing any harm from its existence and popularity.

Mobile commerce could lose traction as byproduct of new legislation

It is not unusual to see businesses get involved in U.S. politics for one reason or another, but eBay is one of the companies that has avoided this involvement in the past. This is due to the fact that there are relatively few laws in the U.S. that govern the world of e-commerce, as well as that of mobile commerce. The laws that do exist have helped create an atmosphere where companies and consumers can conduct business in a balance manner. A new legislation in the U.S. is causing eBay some concern, however, and may even put a damper on the company’s interests in mobile commerce to some degree.

eBay moves to fight Marketplace Fairness Act

eBay CEO John Donahoe has taken issue with legislation known as the Marketplace Fairness Act. Donahoe claims that this legislation will put unfair burdens on all small online merchants. The legislation is designed to provide states the authority to compel online retailers to collect sales tax, even if that retailer is not based within the boundaries of a particular state. Currently, states only impose this authority on physical merchants doing business within state borders. Donahoe claims that the legislation will make it very difficult for online merchants to do business and could severely limit their ability to cater to a large, national market.

Retailer taps users to combat legislation

Donahoe has sent out emails to eBay’s 40 million users, asking for support in opposing this legislation. The legislation could potentially have a significant impact on the mobile commerce space, as it is designed specifically to address issues that exist in e-commerce. Mobile commerce is becoming increasingly popular among consumers, with many favoring to shop online and purchase products using their mobile devices rather than their computers.

Sales tax may make mobile commerce less popular

Imposing a tax on online sales without recognizing any jurisdictional boundaries may make it extremely difficult for mobile commerce to find a significant level of growth in the coming years. One of the reasons mobile commerce is so popular in the U.S. is tied directly to the popularity of e-commerce. That is that state-based sales tax is not collected through purchases made online from digital retailers.