Mobile Ecommerce Investments to Pay Off in 2011

In 2010, mobile shopping activity began to have a noticeable influence on ecommerce sales. The momentum culminated in a coming out party during the holiday season. Consumers discovered that mobile phones helped them to stay within their budget and be more efficient in checking-off the items on their holiday shopping list.

According to a survey by SapientNitro, a marketing and technology services company, smartphone owners integrated their devices into their shopping routine by using them to find deals, research products, solicit opinions from friends and family on products of interest, share information about a shopping experience with friends on a social network and, of course, buy products.

“Portability is a game-changer in transforming the way that people shop,” said Chris Davey, worldwide head of commerce at SapientNitro. “Technology is causing some of the biggest shifts in human behavior that we’ve seen in years, and consumers are more informed and empowered than ever. This has a major impact not only on the way that consumers shop but also on the way that retailers need to market to consumers….”

More mobile shopping activity was reflected in the numbers reported by eBay, Google and ShopSavvy, among others.

While these statistics bode well for the future of mobile commerce, consumers still have concerns about using their device for shopping. The mobile shopping experience is somewhat awkward, and some consumers have concerns about credit card security when they order by smartphone.

Such worries are a reminder of similar objections people raised during the early days of ecommerce. However better engineered mobile devices and designed apps will improve the shopping experience. Also, as the uninitiated hear stories from friends and family about their accomplishments while mobile shopping, they will gain the courage to try it too.

Further, strong growth in new ownership of smartphones also bodes well. eMarketer expects the number of smartphone users to grow 22% in 2011, bringing the percentage of the population owning a smartphone to 23% this year compared with 19% in 2010.

The bottom line: Retailers who have invested money in building a mobile program but have not received a commensurate return will begin to see their efforts bear fruit in 2011. Retailers who have not invested are losing valuable time on the learning curve.