Retailers are aware of the fact that consumers are increasingly using their mobile devices to carry out shopping related activities, including researching items, comparing products and purchasing. While many merchants are facilitating these processes for customers by providing mobile-optimized websites for easier browsing, smartphone and tablet applications can also help shoppers. As both businesses and consumers gear up for the holiday shopping season, apps can help retailers boost their sales and assist shoppers with their gift buying.

It's going to be an 'appy' season

Internet Retailer reports that a recent study by PriceGrabber revealed that 31 percent of respondents stated they have a shopping-related application currently on their mobile device. Of that amount, 82 percent said they plan to use the apps when shopping this holiday season, with saving money being the main purpose. Of the customers who do not currently have these types of apps, 32 percent of respondents stated they will download them in the coming months to help their shopping.

Nearly half (42 percent) of consumers said they will be buying both large- and small-priced items through their applications. Forty-one percent will purchase products less than $100, while 10 percent stated they will buy all of their gifts and items by using applications, the research found.

"Instead of clipping coupons, shoppers are scouring the Internet and turning to their mobile devices to find the best deals," said Rojeh Avanesian, vice president of marketing and analytics at PriceGrabber. "With mobile shopping growing at a rapid rate, it will be interesting to see how retailers will gain the shoppers' attention in the competitive mobile market space this holiday season."

Preparing for the mobile purchasing rush

While it will be beneficial for retailers to develop and launch mobile applications to accommodate these shoppers during the holiday season, those that have mobile-optimized websites can also see many advantages. However, merchants that have neither may not be able to have as successful seasonal sales as they were hoping for.

TopTenWholesale offers some suggestions for businesses that are considering providing mobile websites for device-carrying customers. All elements included on the page need to be simple and easy to navigate, as this will reduce confusion and lead to streamlined transactions. Additionally, written text needs to be kept to a minimum. The products and services offered need to be the main focus, the source states.

There may still be some retailers that have yet to implement new solutions for accommodating consumers using their smartphones and tablets to make purchases. However, the number is dwindling, as businesses are learning the importance of technology and how it can benefit operations.

"Technology is changing the way consumers shop and has the potential to provide a valuable lifeline to the retail sector," said Angus McCarey, U.K. retail director for eBay, as quoted by BizReport.

The website states that as technological devices continue to change not only the retail industry, but the world as a whole, it is only beneficial that retailers take steps to integrate these solutions into their daily methods and strategies. If they fail to do so, they could risk losing out to competition, which ultimately results in decreases in revenue as well as customer retention and loyalty.

Another aspect that retailers can take into consideration when making decisions about technology is the fact that it gives customers more control over their shopping experiences, states Judith McKenna, writing for Retail Week. While change can be daunting, these new devices are giving shopper what they want, and retailers can only stand to benefit from offering the solutions.

It might come as a surprise, but larger internet retailers are more likely to become victims of fraud, which leads to significant losses in revenue for companies.

Internet Retailer reports that research by LexisNexis found that ecommerce retailers that have more than $50 million in annual sales are losing an average of $219 for each fraudulent transaction, compared to the $120 that smaller online merchants lose. Bigger internet retailers are seeing losses of 0.60 percent of their revenue to fraud, while all merchants that were analyzed lost 0.54 percent. The source states that these companies may be more prone to fraudulent transactions due to the fact that they are less likely to flag items and purchases that carry higher prices.

Mobile commerce is also resulting in losses for online merchants. According to Upstart Business Journal, the study from LexisNexis revealed that mobile retailers pay an average of $2.83 for every $1 in fraudulent transactions. This is an increase from the average of $2 in 2011. These instances of fraud include bounced checks, stolen merchandise and requests for refunds. 

As new forms of technology emerge, tasks that were once completed manually are now being done by mobile devices and computers. For this reason, many retailers are beginning to increase their efforts to implement solutions that allow them to accept payments, as consumers are increasingly going online and on their phones to purchase items.

According to a study by Forrester Research, more than half of the retailers surveyed said they will spend more this year on ecommerce technology than they did last year, reports Internet Retailer. Of the 56 percent who plan on buying new solutions, 18 percent said their spending will increase at least 20 percent from 2011. One of the main reasons for the boost in ecommerce systems among retailers was the requirement to support operations throughout websites, mobile applications and in-store POS systems, writes the source.

Ecommerce Times cites research by StatCounter which found that internet use on mobile devices has more than doubled since 2009. This could be a reason why many retailers are now focusing their efforts on implementing solutions that can accommodate shoppers who are using their smartphones and tablets to purchases items and goods from businesses.

Smartphones are increasingly being used to complete a variety of tasks. Now, these devices are making their way into retail stores, as merchants are starting to accept mobile payments. However, some retailers might still be hesitant, despite this new technology providing businesses with many advantages in the form of increased revenue.

TechCrunch writes that while the use of smartphones to pay for items and services is not quite widespread, it is only a matter of time until customers are using their devices to buy from retailers. The source cites research from Deloitte, which anticipates that mobile payments will increase between 17 and 21 percent by 2016. This accounts for approximately $628 million to $782 million in retail sales. Smartphones are already being used for shopping purposes, as the research discovered that 46 percent of device owners have used them to look up information about items and retail stores.

These findings could be the reason why retailers are implementing mobile payment acceptance systems to accommodate consumers who prefer to buy items and services with their smartphones. The Wall Street Journal reports that many merchants are being encouraged by market conditions to adopt solutions that allow them process these types of payments. If they don't, they could lose out to competition.

In opposition to the recent agreement reached between Visa, MasterCard and retailers, the National Retail Federation (NRF) announced that it is prepared to go to court to fight and hopefully block the settlement, which the organization argues will negatively impact merchants across the country. The NRF has been authorized by its board of directors to go to court if necessary. The organization is hoping that several aspects about the settlement will be brought to light that were left out beforehand, such as the fact that consumers are charged hundreds of dollars each year through the swipe fees.

NRF argues settlement not fair to retailers, consumers

The agreement with MasterCard and Visa states that retailers can no longer sue the companies over swipe fees. This includes merchants who do not even exist yet. The NRF argues that this provision is unfair and can only result in further violations by the firms, as they can raise swipe fees at any time.

"The National Retail Federation categorically opposes the proposed settlement," NRF President and CEO Matthew Shay said. "It does nothing to curb the anticompetitive behavior of Visa and MasterCard, and instead ensures that swipe fees paid by retailers and their customers will continue to rise while barring any future legal challenges. The proposal is a lose-lose-lose for merchants, consumers and competition. NRF will take any and all steps necessary to oppose the settlement as it is currently proposed and will work toward real reform of the swipe fee system."

Swipe fees cost merchants and customers billions

Swipe fees are collected by Visa and MasterCard from each transaction that is made, whether at brick-and mortar locations or online. In total, these fees come to approximately $50 billion each year. This accounts for the third highest expense paid for by retailers, behind workers' salaries and benefits. For online merchants, swipe fees can be as much as three times higher than those paid by other merchants.

The NRF also states that the suggestion by Visa and MasterCard for retailers to charge credit card paying shoppers more for these transactions is pointless, as businesses want to decrease fees for consumers.

"A key question for the judge is whether this settlement is fair to the nation’s retailers," Shay said. "From what we have heard, it unequivocally is not. NRF's membership reflects the vast majority of retailers from Main Street small businesses to some of the nation’s best-known brands."

Many retail organizations throughout the country are voicing their opinions regarding the swipe fee agreement reached by card giants Visa and MasterCard.

The most recent organization to oppose the settlement is the Retail Industry Leaders Association (RILA), stating that the deal would hurt both businesses and consumers. The RILA also said it would drive down payment innovation, as Visa and MasterCard would be free from being charged with any legal claims regarding interchange practices, which are aspects that led to the creation of the agreement.

"Retailers are concerned that in addition to limiting their future legal options, the proposed settlement preserves the Visa/MasterCard duopoly and constrains emerging innovations that could bring meaningful competition to the marketplace," said RILA president Sandy Kennedy in a statement.

According to Forbes, large retailers are also against the settlement, including Target and Wal-Mart. MasterCard and Visa agreed to pay more than $6 million after they were accused of participating in anti-competitive practices as well as payment processing price fixing. However, many businesses are opposed to the deal. Wal-Mart stated that the settlement will continue to force high charges on retailers and customers and therefore will not change the payment landscape, reports the source.

Smartphones and tablets allow users to complete a variety of daily tasks, which save time and sometimes money. These devices are not only set to change the consumers' lives, but the world of commerce is also expected to be altered by the emergence of these technologies. While retail technology is constantly changing the way merchants and shoppers interact with each other, industry experts believe that these modifications will have many benefits for all parties involved.

Impact of technology on retail

USA Today reports that many retail industry experts believe that brick-and-mortar locations will function differently as technology begins to change the landscape. This includes a variety of hardware and software, such as mobile device applications, social media platforms and other advancements. Some believe that retail stores will turn into centers where consumers go to test out products and services, but do not make purchases. Shoppers will then use mobile and online tools to buy what they want.

For this reason, many retailers will need to integrate necessary systems and solutions to accommodate customers who prefer to utilize these technologies in their shopping experiences. It is believed that cash will no longer be used, as consumers will leave it at home or in the bank. They will instead be completing transactions by using credit and debit cards or even their mobile phones. This new purchasing method may be the technology that is poised to change the world of commerce the most, as the marketplace readies itself to begin adopting solutions.

"Cash has dug in its heels for small-value transactions, but with the arrival of each new tech offering (providing) an alternative way to pay for little stuff…cash is being further and further marginalized," says David Wolman, author of the book The End of Money, as quoted by the news source.

Mobile commerce increasingly becoming popular

The current back-to-school shopping season has seen a significant amount of school supply purchases made through mobile devices, according to recent research by the National Retail Federation. The study found that 43.8 percent of consumers who own tablets will use their devices to compare and ultimately buy necessary items needed for the upcoming school season. Smartphones will also play a role in back-to-school shopping, as 20.9 percent of shoppers looking for items for college will purchase from their devices, along with 19.2 percent of K-12 customers.

As smartphones and tablets make it easier for users to complete daily tasks, these devices will continue to make their way into new industries. Retail is one sector that is experiencing a large impact from mobile sales, and the current back-to-school shopping season is expected to see a large increase in purchases from devices.

A recent study by the National Retail Federation (NRF) revealed that a significant amount of smartphone and tablet owners will buy items needed for school on their devices in the next few weeks. Almost 70 percent of tablet users stated they will use their devices to purchase merchandise and supplies. As for smartphones, half of the owners surveyed said they will make payments on their devices for school-related items.

"Mobile continues to drive the conversation in the retail industry, and when it comes to back-to-school, retailers have spent months preparing their mobile promotions in anticipation of one of the biggest mobile shopping seasons we’ve seen yet," said NRF president Matthew Shay.

Retail sales are expected to increase during the back-to-school shopping season after July's numbers produced better-than-expected results, reports MarketWatch. Industry experts anticipate larger sales among consumers, as parents buy items and supplies for their children.

Smartphones are not the only devices that are changing the world of commerce. Tablets are also increasingly being used to buy items from online retailers, since these technologies give consumers greater purchasing power in the palm of their hand. Tablets are utilized by all age groups and genders, although recent research has found that consumers of younger generations have become adept at buying from retailer on their tablets.

Younger generation prefers to use tablets for shopping

Although many consumers still prefer to purchase items in the physical location of the retail store, tablets are giving customers a more remote and simple way to complete transactions. According to Internet Retailer, recent research by comScore Inc. revealed that when it comes to genders, it is a 50-50 split for men and women users, as they both equally utilize the devices to make online retail purchases.

Perhaps not as surprising was the fact that younger consumers are more likely to use tablets for online shopping. Of the customers surveyed, comScore found that 63 percent were under the age of 45, and 42 percent were 35 years old and younger. Nearly a quarter of shoppers ages 18 to 24 use tablets, representing the largest group.

Household income was another factor that comScore studied, and the research found that 38 percent of tablet users came from a residence making more than $100,000 per year. When it comes to the types of devices, Apple's iPad lead the way, being especially utilized by males, wealthier individuals and younger consumers. Kindle's Fire device is more popular among females, and both the Fire and Android's tablet were more popular with shoppers with lower incomes than those that use iPads, states the source.

Worldwide retail tablet sales on the rise

Equities reports that research by Monetate has discovered retail sales by tablets are becoming almost as popular as desktop and laptop computer purchases. The study also revealed that more money is spent when shoppers use tablets to buy items. In the second quarter of 2012, the percentage of tablet sales was at 3.17, while desktops and laptops represented 3.34 percent. The average amount of purchases on tablets for Q2 was $96.11, with other online methods averaging $91.86 per transaction.

"Tablets are truly a competitor for the desktop [and laptop], with web tablet users converting [to buy] at nearly the same rate," said Monetate's chief marketing officer Kurt Heinemann.