Although the US has the largest base of mobile phone users in the world, less than $4 billion will be spent on shopping and travel via internet-enabled mobile phones in 2006. This is less than 2% of all online shopping, according to new wireless research by Jupiter Media Metrix (JMM).
The survey reports that consumers’ interest in purchasing items using a wireless device is not a priority, as only 7% of users expressed a desire to transact with a mobile phone. Jupiter analysts predict, however, that shopping-related content on mobile devices will influence transactions online via PCs and offline in brick-and-mortar stores’ sales; these will be valued at $39 billion in 2006.
“Limitations of wireless devices and slow networks are being used as unacceptable excuses for the slow growth in US mobile commerce. The actual culprit is consumer apathy,” said Dylan Brooks, Jupiter analyst. “With the number of US consumers conducting wireless transactions not expected to exceed one million until late 2002, carriers and merchants must change strategies to focus on simple text messaging and text-enhanced voice services until Americans are more comfortable using the wireless internet.”
Consumers who already buy goods and services online avoid shopping via wireless devices chiefly because of concerns over the cost of access, with 36% reporting that it discourages them from shopping wirelessly. Wireless carriers must create free, dedicated shopping channels on their web portals and merchants must offer discounts or promotions to consumers making their first purchases over the wireless web, says Jupiter.
