Time to think: Mobile.....again

If the US and Japanese markets are anything to go by then mCommerce is coming. Leading the way, the i-mode service was launched in Japan as far back as 1999 and is cheap, fast and offers access to about 600 official and thousands of unofficial sites. Users can send emails, transfer funds between bank accounts, book plane tickets, find the nearest hotel or a restaurant, play interactive games, download music and shop! In the US, the market has grown significantly this year with players such as mShopper and mRocket reporting growing interest from both retailers and consumers.

At its simplest level, mCommerce allows customers to shop online at any time, in any location. Through visiting the mobile version of an eCommerce site or receiving a list of products direct to their handset, customers can browse and order products from their phone. However like eCommerce, mCommerce has the potential to go far beyond the transactional and offer not just another sales channel to integrate into the mix but open up a personal, direct line of communication with consumers - anytime, anywhere.

So, considering the potential, over 87% of people in the UK have a mobile, why are we still debating whether mCommerce will ever take off? More and more people are paying for ringtones, voting in premium priced competitions and even parking meters in Westminster now take SMS payments, but there still seems to be a feeling of uncertainty.

Since 2000 the mobile has overcome a number of key issues including: consumer penetration - well now nearly everyone has one; look and feel - mobile screens are vastly improved with more colour and built in browsers; the speed to connect - some mobiles can now match a home broadband connection. However despite these advancements there are still a number of sticking points.

One of the key factors is networks: some of them are driving us towards mCommerce, the majority are not. Restricted downloads, unlimited contract offers with unlimited caveats and strict enforcement rules on which sites can be accessed are all contributing to a restriction on consumers getting on board. Fraud is another key issue with a strong fear that a fraudster could literally pluck sensitive information out of the air, getting personal data from your bank or retailer. Finally, let's not forget cost. The mobile operators are not the only ones hoping to profit from mCommerce. Lots of other companies are joining the fray and who knows, it could be more difficult to make money selling via a mobile that via the desktop. Lots of “ifs and buts” still stand in the way of making a profit from mCommerce.

So, are any of us ready to take the traditional aspects of online shopping into the palm of our hands? Those companies that recognised the potential of eCommerce early have reaped the rewards - will the same apply for those embracing the mobile platform? We can see the potential and with our partner PayPal offering mobile payment services on eBay, bidding via your mobile is now a reality. But we can also see the pitfalls: cost, accessibility, design, fraud and the complexities of integrating into the larger marketing mix.

The jury is still out at our end and whilst we hope that mCommerce will finally become an integral part of a brands’ internet retailing strategy, we have a slight feeling that maybe 2009 will be the year of the mobile.