Retailers will most likely miss out on up to $8.6 billion in sales in mobile commerce this holiday season due to outdated mobile checkout experiences, according to findings from Jumio.
Of the National Retail Federation's projected $616.9 billion in holiday sales for 2014, retailers are expecting a big increase in online sales—86 percent in year-over-year holiday sales, according to a ChannelAdvisor multichannel e-commerce study. And 20 percent of those online sales will be made on mobile.
Recent reports find that between 47 and 72 percent of shoppers abandon purchases on mobile devices due to issues at checkout and most of those shoppers do not try to finish the transaction later on a desktop. Therefore, between $5.6 and $8.6 billion worth of sales will be lost this holiday season due to frustrations with mobile.
"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, CMO, Jumio. "While mobile apps have transformed the e-commerce 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 at the holidays and throughout the year."
In addition, Jumio reports that friction at checkout can cost retailers future sales. Sixty-three percent of consumers responded that they are less likely to buy from the same company, through any other purchase channel, after abandoning a mobile transaction, reported a Harris Poll. And 47 percent said they failed to complete a purchase because the checkout process took too long.
Other reasons for abandoning a purchase include 41 percent claiming the process was too difficult on their device and 23 percent claiming the purchase just would not go through.
According to recent research released by Contact Solutions, another large reason that consumers making in-app purchases are likely to abandon mobile shopping carts is if their high expectations for customer care are not met. Reporting difficulties, 16 percent of consumers say they struggle with mobile shopping apps at least half of the time and 38 percent say they are disappointed with the inability to get someone to help them work shopping apps.
*This story originally appeared in FierceMobileRetail's sister publication, FierceRetail.
-See this Jumio press release
5% of US shoppers buy on social media
Saks uses social media to nab shoppers
Social media leads to a surge in coupon searches
Amazon's Vine.com relaunches as online grocer with a twist
Soldsie CEO Chris Bennett: Why all shopping should be a social