Major Losses Projected in Mobile Sales
Jumio estimates retail losses tied to mobile checkout abandonment will equate to 27 percent of the total mobile revenues for Christmas 2014
With the festive retail season shortly about to take off, Jumio, Inc. released its mobile commerce analysis that finds that although UK retailers are set to enjoy the most successful mobile holiday shopping season to date, they will miss out on nearly £2.5bn in sales due to the prevalence of outdated mobile checkout experiences.
Christmas 2014 Expected to Break Records
This festive season, predictions are that UK retailers will take nearly £5 billion [1] in mcommerce sales, driven by a 64.8%[2] YoY increase of transactions from mobile devices. But according to a recent Harris poll, 47 percent of shoppers abandon purchases[3] on mobile devices because of checkout friction where sub-optimal payment and checkout experiences cause consumers to drop out of the transaction. Furthermore, the majority of shoppers (57 percent) do not attempt the transaction later[4] on a desktop computer, meaning up to £2.5 billion in the form of lost sales stands to be left on the table by UK retailers this peak Christmas trading season.
Key Reasons for Mobile Checkout Abandonment
“We know that consumers abandon mobile shopping carts for a variety of reasons, from slow network speeds to high shipping costs, but the most significant among them is entirely under a retailer’s control – simplifying checkout processes,” said Marc Barach, Chief Marketing Officer, Jumio. “While mobile apps have transformed the ecommerce shopping experience, checkout processes have not kept pace with mobile technology. Retailers need to implement solutions that seamlessly usher shoppers through the checkout experience to stem the tide of shopping cart abandonment and billions lost in potential sales, both during Christmas peak trading and throughout the year.”
Long-Term Impact on Retailer Loyalty
In addition to revenue lost due to payment friction at the time of checkout, retailers risk losing money on future purchases as well. 63 percent of consumers are less likely to buy from the same company via other purchase channels after abandoning a mobile transaction due to a poor experience, according to the recent Harris poll. Nearly half of all consumers surveyed (47 percent) said they failed to complete a purchase because the checkout process took too long. Other reasons shoppers fail to complete a mobile transaction include:
- 41 percent said the checkout process was too difficult on their device
- 23 percent said they failed to complete their purchase because it would not go through
Jumio Launches Solution to Combat Abandonment
Jumio today also introduced BAM Checkout (www.jumio.com/press-releases/) a comprehensive mobile checkout offering to increase transactions while reducing fraud. For more information, please visit: www.jumio.com/BAM
[2] http://internetretailing.net/2014/06/mobile-shopping-drives-uk-retail-e-commerce-sales-study-says/
[3] https://www.jumio.com/2014/01/despite-largest-mobile-holiday-shopping-season-in-history-retailers-left-15-9-billion-in-mobile-commerce-on-the-table/
[4] https://www.jumio.com/2014/01/despite-largest-mobile-holiday-shopping-season-in-history-retailers-left-15-9-billion-in-mobile-commerce-on-the-table/
