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Apple Drum News UK

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


By The Drum Team | Editorial

March 21, 2012 | 2 min read

Apple’s new App Store ‘Catalogs’ category, introduced last week, could have significant potential for online retailers if Apple changes its sales tax and data policies, Nice Agency has said.

The new category allows online retailers to make their online catalogues available, although it was suggested that most of the discussion about the new category had focused on a possible link to the iPad 3 launch.

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.”

Apple Drum News UK

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Nice Agency

Nice Agency specialises in the strategic planning, design and development of innovative applications. Our experience spans platforms, screens and environments. We create digital products across the web, desktop, mobile, tablet, connected TV and digital in-store using our user experience design-led process and technical expertise.

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