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November 10 2011

Commerce Weekly: Chasing down abandoned shopping carts

Here's what caught my attention in the commerce space this week.

Inviting customers back to their carts

Shopping cartOnly three out of every 10 online shopping carts actually make it to checkout, according to email marketing vendor Listrak. That's 70% of carts lying abandoned in the virtual corridors of ecommerce. Listrak wants to improve those numbers. It's one of several vendors offering "shopping cart abandonment solutions" — essentially, programs to follow up with shoppers who've left the store and ask them, "Haven't you forgotten something?"

Retailers would love to close more of those sales: Listrak estimates $18 billion lost in sales to U.S. retailers every year. A Forrester study last May found that 89% of consumers had abandoned a shopping cart at least once. Forrester's authors attributed that high rate to growing user sophistication: as shoppers become more experienced online, they are more likely to comparison shop even as they move toward checkout. Other industry observers offer a simpler explanation: shoppers are shocked at high shipping costs. A 2006 study by Goecart blamed comparison shopping, high shipping costs, and plain old running out of time as the leading causes of abandonment.

Listrak sampled Internet Retailer's Top 1000 online retailers, loading up carts and then abandoning them ("Hey you kids! Knock it off!") to see who would follow up. Only 14.6% sent a follow-up email, and fewer still sent a second or third email which, Listrak's CEO Ross Kramer told Internet Retailer, is where about half of the revenue comes from. Among Listrak's suggestions to retailers: get the shopper's email address first.

X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at

Intuit cuts payment rate for AT&T subscribers

Intuit announced a partnership with AT&T for its GoPayment mobile payment solution, which competes with Square. Like Square, Intuit offers a free card-swiping attachment that plugs into the audio jack of an iPhone, iPad, Android or Blackberry device, allowing anyone to collect credit card payments. Intuit's basic rate of 2.7% slightly undercuts Square's 2.75%, but AT&T customers will pay even less (1.7%).

Intuit originally charged customers $175 for the swiper dongle, but last January, in a bid to compete with Square, it began offering the dongle for free. Still, Intuit has struggled to gain the visibility that Square founder Jack Dorsey and COO Keith Rabois and high-profile investors like Richard Branson have brought to Square. This week's deal with AT&T is a reminder that Intuit is serious about GoPayment, which may actually offer more to merchants since it integrates with QuickBooks, its bookkeeping package that also targets small businesses.

PayPal embraces NFC (just a little)

PayPal has made something of a point of not jumping on the NFC bandwagon, emphasizing the technology-agnostic nature of its mobile payments platform. Demonstrations at PayPal's recent Innovate conference emphasized payment options like PayPal's Empty Hand system, which lets you buy things with only your mobile number and a PIN.

Still, NFC seems an inevitable part of the payments picture in the years ahead, and this week, PayPal delivered the peer-to-peer NFC payment technology that it promised last July. Shimone Samuel, Product Experience Manager for PayPal Mobile Applications, wrote on the PayPal blog that the technology for NFC P2P is included in version 3.0 of PayPal's Android app. No need for it in the iOS app yet, obviously, since the most recent iPhone upgrade disappointingly didn't include support for NFC.

As we noted back in July, in practice, the transfer of funds through PayPal's NFC system isn't substantially different from what was already possible using Bump, which sends the transfer through servers in the cloud rather than wirelessly between the mobiles. But the NFC system will let PayPal developers acquire experience with NFC wireless transfers, which should serve them well as NFC-enabled point-of-sale terminals begin to show up next year and beyond.

Got news?

News tips and suggestions are always welcome, so please send them along.

If you're interested in learning more about the commerce space, check out PayPal DevZone on X.commerce, a collaboration between O'Reilly and PayPal.


January 12 2011

Developer Week in Review

Now firmly seated in the New Year, your week in review returns to its normally scheduled programming.

No sale for Novell?

As reported in the Year in Review, Novell had plans to sell a chunk of Unix intellectual property to CPTN Holdings, a consortium that includes Microsoft, Apple, EMC and Oracle. This reopened the fear that Linux would come under patent attack. Last week, it was reported that the deal was evidently off, but according to Microsoft, it was just a procedural thing with German regulators, and the process is moving ahead according to plan.

Assuming this sale goes through, it will remain to be seen if the Gang of Four takes the next step and tries to prosecute any of the patents against the open source community. It's possible that they intend to use them against other companies, or as protection against IP actions. But given Microsoft's history in the SCO controversy and the company's feelings about Linux, it is also possible that pigs will fly.

The worst kept secret in the Industry

If you haven't heard that Apple finally inked a deal with Verizon this week, you should consider subletting the rock you've been hiding under. The interesting question that no one seems to be asking is if this is going to start the fractionalization of the iOS developer community. The Verizon version of the iPhone will ship with a mobile hotspot feature that the AT&T version lacks, and you can't help but wonder if other differences will creep into the iPhone over time as different carriers put different restrictions and requirements on the platform. One of the major selling points of the iPhone is that there has been little platform diversity for developers to deal with, apart from some sensors and the iPad. If too much branching of the hardware and software platform occurs, Apple could find themselves in the same boat with Android.

We also know that certain apps were banned from the App Store because AT&T objected to them. Will apps now have to pass muster for two different carriers, or will we start to see AT&T and Verizon-only applications?

Tablets, tablets, tablets!

That yearly pilgrimage of tech-heads, CES, has ended, and the big news for software developers is that tablets appear to be the new black. Multiple vendors showed off iPad wannabes at CES, many based on Android, a few on Linux, and a few running Windows.

Smartphones have already changed how software is developed, as applications have moved away from the keyboard-and-mouse input model. But until now, desktop-level applications have still clung to the old way. As tablets start to replace notebooks and netbooks, we're likely to see development shifts in productivity and enterprise applications that traditionally were tethered to a keyboard.

What does the future hold for those who code? My crystal ball is currently installing update 2 of 543, so I guess you'll have to check back here next week to find out. Suggestions are always welcome, so please send tips or news here.


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