Communications in general have come such a long way over the past 50 years that it may have been difficult for even the most radical futurist to envision what is done on mobile devices today. Some of you may remember around 50 years ago when the Dick Tracy two-way radio was the pinnacle of mobile communication…

…and now smart phone users take for granted being able to look up directions, have a video conference, and play their favorite video game all from the same device. But the best part is you don’t even need to have a box attached to your hip with an antenna coming out of it to get everything to work!

There have been a couple very interesting studies lately relating to mobile commerce which has really sparked the discussion and brought the topic to the forefront. A recent study conducted by our end-to-end eCommerce partner Demandware states that 96.2% of U.S. consumers own a mobile device, with slightly under half of those users owning a smart phone. Additionally, a study by Coda Research indicates that mobile commerce in the United States is forecasted to grow from a $1.2 billion dollar marketplace in 2009 to a $24 billion dollar marketplace in 2015, or 7.7% of all eCommerce revenue.

That’s a pretty substantial increase… if most eCommerce professionals told their boss that almost 10% of all their eCommerce transactions would be from mobile devices in the next 5 years, there might be more initiative to get the ball rolling on or enhance their current mobile plan.

We’ve still got a few years left before mobile commerce reaches this level, but here are a couple tips to help retailers prepare for the continued development of mobile commerce…

• Comparative Shopping – As the percentage of mobile users with smart phones increases, more and more people are clogging up the aisles at retail stores to figure out if the item they have in their hand is priced accordingly in the store or if they can get it online for a better price. According to the Demanware study referenced earlier, this number has grown to a quarter of all mobile phone users. Some items have significantly higher mark-ups than others in a retail setting (technology cables come to mind) and comparative shopping is often the final factor to push the customer into purchasing or leaving the item on the shelf, especially with sale and clearance items

• How to prepare – Customers are using apps for their phone, such as RedLaser for the iPhone, to scan the barcode of the item in question and gets a list of prices on the fly from a variety of sources. However even if the consumer finds the product cheaper online, odds are they won’t be able to purchase the product right there on the spot. This is where the evolution of the shopping cart in mobile commerce will come into play, allowing easy checkouts from anywhere and at any time. Imagine a potential customer purchasing a product from your website or app while standing in a rival store… pretty cool, isn’t it?

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A Store Map of a Best Buy located in Framingham, MA

• The Mobile Companion – It’s no surprise that as mobile devices have evolved, people have demanded more from them. The same can be said about mobile apps and websites. One feature which could really catch on is the ability for customers to integrate their shopping trips with their mobile device by creating lists, viewing store maps, and searching for products within the store. Turning a smart phone into a mobile companion within the store can also lead to a decrease in the probability of the customer engaging in price comparison and can alleviate losing customers who do not want to seek out assistance within the store.

• How to prepare – We all know how important customer retention is for any industry. With a mobile companion, customers are more likely to have a positive experience in your store and look forward to coming back. Allow customers to easily order a product directly from their phone or at a checkout within the store if it is out of stock. Make it easy for customers to find floor employees via GPS tracking. Create an in-store experience like no other.

In short, the days of the Dick Tracy two-way radio are now a distant memory and mobile commerce is evolving faster than ever. What kind of services do you think your customers would want on their mobile devices?

An article was recently published in the New York Times about how luxury brands are finally beginning to embrace eCommerce. Luxury brands were among the hardest hit by the economic downturn and although the luxury industry has been predicted to have a slow recovery, the luxury eCommerce industry is beginning to boom.

Even though eCommerce is well developed in many facets, luxury brands have been among the slowest adopters when it comes to selling direct to consumer online. Why? Because for luxury brands it is, or at least it was, about the luxury “experience”; being seen in the high-end store or showroom, browsing an array of high-priced items while the staff caters to your every need, and then making a purchase to show off to all of your friends on an evening out. It can be difficult to re-create this experience through a computer screen.

But as large retail chains struggled, many luxury brands were infuriated to see their products sitting on clearance racks as over-purchased inventory was being liquidated. Large retail chains were just looking to stay afloat and if it meant depreciating luxury brands then so be it.

As luxury brands looked to re-gain control of their brand, image, and “experience”, more and more brands began moving away from brick-and-mortar expansion and pursuing eCommerce ventures as a cost-saving tactic. All major luxury brands have websites, but for a long time only a select few sold direct-to-consumer through online channels. Most websites were flashy brand extensions which offered little in educational value and received minimal web traffic.

Here at PFSweb, we have always advocated being the brand behind the brand for retailers, allowing luxury brands to fully operate the way they need to. We have several luxury brand clients including Sunglass Hut and Sephora who leverage our unique eCommerce offerings to recreate the luxury “experience” their customers’ desire. These offerings include “no-fingerprint” fulfillment, brand advocate customer care representatives who are masters of their brand, and immaculate product care which includes no dust product storage. All of this is done to make sure customers receive the same products they do in the store looking the exact same way as if they received it from behind the counter.

We also assist luxury brands in creating an immaculate, engaging storefront to re-produce the “experience” customers’ have grown to expect from the physical brick-and-mortar stores of their favorite luxury brands. Through our End2End relationship with Demandware, we can not only mimic the selection available in stores, but also expand on the selection by offering additional merchandise as well as allow the luxury brand total control over price and supply.  A big difference from retail showrooms, isn’t it?

Our European office, located in Liège, Belgium offers some unique solutions which enhance the service offerings of PFSweb. Founded in 1999 and named PFSweb Europe, our European headquarters was developed to support European clients as well as global clients that wanted to extend their solution into Europe. As PFSweb expanded globally and extended its service offerings into Europe, PFSweb Europe became an independent operating segment running the same technology and services as in the U.S.  Today, our European solution is run by a highly experienced European leadership team who understands eCommerce in Europe and can help you grow your business in this growing market.

Here are some of the solutions unique to the European operations of PFSweb…

E-COMMERCE

European solutions are known for their complex nature. Unlike North American solutions, there are multiple countries, currencies, languages, payment methods and tariffs which need to be accounted for. Our PFSweb European solution offers a platform for both business-to-business and business-to-consumer clients along with dedicated interactive marketing services unique to each country. These solutions can also be configured to mirror current U.S. solutions and integrate with whatever eCommerce platform you are currently using. Each client, including our U.S. clients, is also awarded a dedicated European account manager and extensive consultancy services to help them succeed in their European objectives.

INTERNATIONAL LOGISTICS & DISTRIBUTION

Our European distribution network allows clients to distribute their products throughout most of Europe in one day and Northern Europe, the Middle East, and North Africa within two days…

Also included in our international logistics and distribution solution is the ability to provide reverse logistics in compliance with all European and local regulations, along with customs clearance and exports. Finally, our partnerships with several key European shipping companies allow us to over very competitive rates for our clients. We use our expertise of international eCommerce to maximize the ROI of the international initiatives of our clients.

MULTILINGUAL CUSTOMER CONTACT CENTER

The customer contact center features customer care in six languages (English, French, German, Italian, Spanish, and Dutch) along with a customized training program designed for each customer care agent. Unique to the European solution, agents are either solely dedicated to your brand or shared with another brand depending on the day-to-day demand your brand requires for each language of customer care.

Did a famous Italian pop star wear your brand in a highly publicized interview? We can increase the number of Italian speaking agents to support your brand in no time.

FINANCIAL SERVICES

Through a variety of financial models, PFSweb can manage VAT tax collection and reporting with every European country on an individual or collective basis. Additional services include cross-currency payment management and fraud protection, updated in real-time to deal with the fluctuations in currency values, and custom invoicing specific for each country.

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As I’m sure you’ve noticed our European headquarters certainly enhances the array of services offered here at PFSweb. The largest benefit according to clients who leverage our European services along with our North American services is the seamless integration between the two services offerings. Even though North America and Europe are two very different landscapes, our clients can have a truly global eCommerce solution through a single provider.

Looking to learn more? Feel free to leave a comment or contact us.