Increased M‑commerce to Drive More Online Marketing

Consumers have more ways than ever to purchase goods and service online. The rapid adoption of both smart phones and tablets is translating into higher mobile commerce sales. As a result, vendors are quickly launching mobile commerce channels to make sure they’re not losing sales to the competition.

The growing consumer interest in m‑commerce has retailers scrambling.  Nearly half (49%) of recently surveyed online retailers say that they need to put successful mobile commerce channels in place to achieve goals this year. Last year at this time, only 23% of surveyed merchants felt the same way about m‑commerce. Lauren Freedman, president of The E‑tailing Group, which published the 10th Annual Merchant Survey 1st Quarter 2011, says “Consumer interest in mobile is strong and showing good adoption. Also, traffic and revenue seem to be promising, and the expectations among the retail community are that they will only grow.”

Of course, operating  a mobile commerce site is not without costs and therefore risks. Surveyed businesses say they’ll be investing in m‑commerce initiatives as follows:

  • $25,000 or less: 39%
  • $26,000-$50,000: 10%
  • $51,000-$75,000: 7%
  • $76,000-$100,000: 6%
  • $101,000-$150,000: 4%
  • $151,000-$200,000: 4%
  • $201,000-$350,000: 2%
  • $350,000+: 6%

The merchant survey also found that online operators (13%) see branding as another important initiative in 2011. As these vendors move into the world of mobile commerce, they’ll be increasing their online marketing activity ranging from display and search to social media to improve branding and drive sales.

[Source: Siwicki, Bill. Half of retailers say m‑commerce is important. Internet Retailer​.com. 25 Apr. 2011. Web. 6 May 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.