Australian retailers are unprepared for the impending boom in m-commerce, according to a new study.
More than half of Australian shoppers now use their smartphone devices at some stage of the shopping process.
This is up from 38 per cent in 2011.
However, a joint study by NetSuite and the Australian Retailers Association (ARA), has found that less than 30 per cent of retailers currently offer a smartphone accessible website.
The study was conducted by Frost & Sullivan and surveyed 120 ARA members, focusing on smaller retailers with less than 50 outlets.
The study was carried out in June 2014 to understand the use of m-commerce by retailers.
The study revealed while most retailers recognise the importance of developing a mobile strategy, many face major barriers.
This includes the cost and complexity of linking new systems designed to support mobility with existing instore business systems.
Frost & Sullivan MD (AUNZ) Mark Dougan said smartphones are revolutionising the way Australian consumers shop.
“The ability to access the internet whilst on the move has transformed many aspects of consumer behaviour. Consumers are increasingly using their smartphones for shopping to research, compare, share, purchase and pay for merchandise.”
According to Frost & Sullivan, a majority of retailers provide mobile apps to enable purchasing while one third regard apps as a way to stimulate traffic in-stores.
Many small retailers still fail to provide in-store facilities that encourage use of mobile devices by their consumers.
The study found features that consumers place value on include free WiFi (68 per cent), stock level information (58 per cent), directions to relevant departments (57 per cent), customer reviews (50 per cent), product information (48 per cent, and being able to purchase using their smartphone (43 per cent).
The study also revealed some retailers are now equipping their store staff with tablets to allow improved in-store service.
This includes sharing product information with customers, assisting with local inventory availability, and even facilitating online purchases from within the store.
Only seven per cent of respondents currently provide sales staff with tablets.
According to the study, smartphones are not being used to make an online transaction.
Almost 40 per cent of consumers that start researching a product on their smartphone end up buying it in-store.
These shoppers are using smartphones throughout the shopping process for researching (29 per cent) and evaluating products (19 per cent).
Only four per cent make a purchase on their smartphone and three per cent write reviews afterwards.
Frost & Sullivan recommended Australian retailers provide features and services to meet their customers’ mobile needs.
“Australia’s consumers are demanding that retailers provide services and features to support them in their omnichannel shopping process," Dougan said.
“Those retailers who fail to respond to the new era of mobility in shopping face being isolated and left behind as the behaviours of their customers change.”