In order to make sense of which option is best, merchants should take a step back and put on their consumer shoes. According to news from ABI Research, mobile e-commerce will reach roughly $119 billion in by 2015, representing about 8% of the total e-commerce market.  Merchants that don’t personally use app-enabled smart phones should go buy one.  The only way to understand what mobile consumers want from an e-commerce merchant is to see what they are seeing.   To serve consumers best, merchants should ask themselves questions such as:   What do I want to be able to see and how fast does the site load on my phone?  What do I want to be able to do on the site (search for products, update account information, etc.)?  What information (graphics) is not necessary when surfing ala mobile?  What design enhancements (Flash, etc.) are too cumbersome for mobile viewing?   On the same note, some information is key to include, like data security (if the merchant is processing credit cards in that version) and merchant contact information.  Additionally, merchants should always provide a link for mobile viewers who want to see the regular site.

At minimum, a mobile optimized site would be the first step, as it requires less customization and is available to more users.  Mobile apps require development for several platforms, keeping up with the changes in those platforms, as well as new ones that come about.  No matter what, some investment in the design will be required, with mobile apps obviously being more costly.  Large merchants like Amazon and Netflix, for example, offer mobile sites and mobile apps (maybe they can afford to do so, but more likely because these options serve their customers best and they want stay current with what mobile users want).  What a merchant decides to offer comes to down considerations such as their business model (Is a mobile app in the budget for a small merchant?); what services/products they offer (Think CNN, best served with a mobile site, versus Netflix, where customers can manage their account using a mobile app); or if the merchant wants to push information to consumers or merely wants them to have mobile access to their site.

Either way, if a merchant provides the ability for customers to manage their accounts online, customers will be more likely to purchase products and services using their mobile phone if the process is streamlined and they don’t have to enter sensitive information (i.e., credit card data), thereby eliminating some security concerns.  However, even if consumers are not purchasing goods using their mobile phone, they are doing a lot of comparison shopping.  No matter what, the only way an e-commerce merchant can compete today is if they are in the mobile game.

As one of the first brick and mortar retailers go to online, 1-800-Flowers continues to lead the pack in thinking outside the box. Started as a single flower store in the 70s, the company launched a toll-free brand in the 80s and then evolved into one of the first online retailers in the mid-90s. Already utilizing mobile phone apps and Twitter, Facebook adds another avenue where the company is finding ways to go directly to the consumer, rather than waiting for the consumers to come to their web site.

“Facebook was the world’s fourth most visited web site in June… “

According to Alexa, a web information research company, Facebook users spend, on average, 30 minutes a day on the site. This gives online retailers, with at least a Facebook “fan” page, more opportunity to capture the attention of their current and future customers. It’s about allowing the consumer as many avenues for purchase as possible.

In addition to 1-800-Flowers’ fan page, followers can also post comments, provide feedback and publish links on their profiles. The company also provides apps for iPhones, Blackberrys and Androids, as well as a basic mobile site, where consumers can shop the Mobile Gift Center and receive SMS offers via their mobile phone.

Besides being a company which seems to forge new marketing paths, 1-800-Flowers needs to throw a pretty wide net out there to catch consumers. 1-800-Flowers’ target market is larger than consumers looking to send flowers, since the acquisition of several companies over the years has expanded its basic product line to include popcorn and specialty treats, cookies and baked goods, premium chocolates and confections, gourmet foods, wine gifts, gift baskets, home décor and children’s gifts.

With its 250 million member base, Facebook was the world’s fourth most visited web site in June, according to figures from comScore, an Internet marketing research firm. So far, Facebook has become a very strong marketing platform (hence the word “viral” that has been added to the original “social networking” term). However, based on other known security issues, the site’s payment platform still has analysts and developers wary of using the site for payment checkout. 1-800-Flowers uses an embedded transactional advertising widget, which operates as a fully functioning storefront. To serve its new e-commerce channel, Facebook is developing a new electronic payments system that might compete with Paypal. Facebook’s Vice President of Product, Christopher Cox, said “software developers who sell applications on Facebook are testing the payments system, but it is unclear whether the company will manage e-commerce transactions across the Web.”

Similar to offering alternative payments, merchants can stay ahead of the curve by regularly finding new ways to maintain their current customer base and reach new consumers. They need to be thinking – “where is my target customer spending their time?” The old adage of “build it and they will come” doesn’t apply in every situation – especially in today’s virtual world.