Setting Up a Mobile Storefront is as Easy as Pie

Selling physical goods on a mobile site may seem like pie in the sky, but if you look to the Japanese it is more like money in the bank. While at Mobile Web Americas, I learned from Daniel Wright, CEO of mPoria, that in Japan over 10 BILLION dollars of physical goods were sold via mobile devices in 2006. This is not downloadable content (ringtones, wallpapers, etc.) this is physical goods (perfume, shoes, electronics, sporting goods, jewelry.)

Wright knew that mobile use came first to Asia and Europe is now coming to America so, being a true entrepreneurial visionary, Wright set out to offer US businesses a way to set up a mobile storefront and get started selling physical goods via mobile. Within 24 hours a mobile store can be set up and launched using mPoria’s GoMobile! mobile commerce solution for retailers.

While mPoria’s big brand customers include GameStop, Buy.com, Moosejaw Mountaineering, GiftTree and many more what is really exciting is that mPoria has pricing that works for small to medium sized business. Any business that sells physical goods to mobile users should get a mobile store open now before the tidal wave of mcommerce hits the US. Frankly, I am thinking of figuring out how to get a mobile store going of my own.

istock_000004283749xdiamond-purchased.jpgWright was not at liberty to share any specific revenue numbers from his vendors, but he did share that the average transaction from mPoria’s mobile stores is $120-$130 with a conversion rate of .8 – 1.5%. Recently one of his clients’ sold a diamond via a mobile order. I wonder if next we’ll hear about someone proposing via text message and then ordering up the engagement ring from their phone. (When you hear that story on The Today Show, remember you heard about it here first.)

My prediction is that by the holiday shopping season in 2008 we will be getting reminded when to order via mobile stores to get your gift shipped on time for the big day. And we’ll know that mPoria is the company making it possible here in the U.S.

1 Comment

  1. Good article. However, we have to keep in mind that most of the m-commerce taking place in Japan is when using a phone as a credit card utilizing NFC. Mobile phone is therefore a substitute for a credit card and “true m-commerce” is not actually happening.

    M-Commerce in physical goods segment (as decribed above) is/will be a fad.

    However, in impulse buying (see an ad -> txt to order, goods with low value (CDs, DVDs etc.), M-commerce will be big.

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