Expanding Into The Mobile Channel
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by: Jamie Simpson
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Word Count: 436
Date: Thu, 26 Jan 2012 Time: 8:55 PM
mCommerce is the next up and coming economy booster in the world. Experts are forecasting the mobile commerce market will expand to $8 billion in 2012. This figure increased 60 per cent from $5 billion in 2011. Other companies are contributing to the increase in mobile commerce, such as PayPal. Paypal's total mobile payment volume is predicted reach $7 billion in 2012. This is a $3 billion increase from 2011. With these significant increases, mCommerce has a great potential for growth.
eBay Mobile's mobile applications are growing in popularity. More than 65 million downloads have been recorded over the past year. In 2011, 890,000 new eBay shoppers purchased items through mobile apps. This indicates a 113 per cent increase over the year. In 2011, PayPal predicted that they would hit $1.5 billion in total payment volume. Surprisingly, the company managed to achieve $4 billion in total mobile volume. mCommerce solutions performed above expectations, according to experts. The previous year the total mobile volume reached $750 million.
How Is the UK Involved into the Mobile Channel?
eBay UK predicts that the mobile network infrastructure will deliver $19.8 billion to the economy by 2021. Long term, the effects of the mobile channels look promising. Short term, experts expect mobile purchasing through eBay to boost the economy by $6.8 billion. The only true inhibitor of consumer shopping through mobile applications is the reliability of mobile broadband network. As the mobile broadband network becomes more reliable, the mobile purchasing will become more profitable.
According to research conducted by White Horse, smartphone use with retail shopping has increased. This will eventually affect the number of sales. Eighty three per cent of consumers use phones to check prices of products in the store and compare them to prices online. Seventy six per cent read customer reviews or get coupons on their phones before making a purchase. Others may use the phone to check the availability of a product at the store.
How Can Discounts Affect Mobile Channel Purchasing?
Stores are hoping that an introduction of social purchasing and coupons will help to stimulate the economy and increase purchasing. When consumers can use online coupons for purchases, they are more likely to buy when they have discounts. Stores are adapting the new needs of mCommerce to increase sales. Stores will earn more sales by developing their online program. According to Delloite, 42 per cent of consumers own cell phones. The cell phones will significantly increase the potential for an increase in sales.
Conclusion
Expanding into the mobile channel is becoming easier with the introduction of new technology on cell phones. Many countries are expecting an increase in total volume in the coming years. Experts are excited about the new developments in the mCommerce sphere.
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MIG offer a range of mobile marketing and mCommerce services to maximise your business potential
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