Apple’s ‘Catalog’ category could help online retailers if sales tax and data policies are resolved, Nice Agency says

Ryan Hall, joint managing director of Nice Agency, said: “There is no doubt that customers are ready for mobile retailing, and the new category is a recognition from Apple that consumers no longer see apps solely in terms of music, gaming or video. But at this early stage it is difficult to know whom Apple is targeting with this category.

“It’s unlikely that many large brands or retailers will swallow Apple’s 30 per cent sales tax on goods and services bought through the app store. Smaller brands may however benefit from the exposure and the chance to build users and make conversions quickly. But under Apple’s existing terms and conditions, selling through a catalogue on the App Store doesn’t currently look like being a money-spinner for retailers.

“Furthermore, the true value of mobile retailing comes not just from direct sales, but also from the large volumes of valuable user data generated. Apple’s policy is not to share this information, which retailers need to build profiles of prospects and customers, and which enables them to tailor and target their marketing efforts.”