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BizReport : Mobile Marketing : August 19, 2015

Jumio: 56% of mobile transactions abandoned, costing retailers billions

Mobile transactions are rising fast but, according to new research released by Jumio, so are abandoned purchases, costing U.S. retailers as much as $24.5 billion in lost revenue.

by Helen Leggatt

For years, online retailers have been struggling with cart abandonment, and that is now transferring over to mobile as new figures from Jumio show more than 56% of U.S. smartphone owners have abandoned a mobile transaction. Such behavior is leaving big money on the table, with 23% of those who reported abandoning a mobile transaction saying the value of the abandoned cart was $100 or more.

After purchase uncertainty (45% of abandonments), the top reason for abandoning a purchase was to do with issues of speed (36%) followed by navigation difficulties (31%). Interestingly, both these issues were cited above concerns about payment security (27%) or safety of personal information (26%). Other issues were that small screens were just too small to enter personal information (28%) and that the payment process was too complicated (22%).

"As mobile transactions continue to skyrocket, so do abandoned purchases, incomplete account openings, and lost revenue," says Marc Barach, Chief Marketing Officer, Jumio. "Businesses have heeded the warning and are finally prioritizing mobile checkout experiences, underscored by the ten percent improvement in abandonment rates over the last two years," said Barach. "But, experiences are still far from being as seamless as they need to be in order for retailers and financial services providers to stem the tide of lost opportunity and put nearly $25 billion back in their pockets."

Additional findings from Jumio's report include:

- The largest mobile commerce sector, apparel, is also the most-abandoned, with 60% reporting they have abandoned such purchases;

- Abandonment rates vary by sector - travel (41%), household items (39%), event tickets (39%), electronics (35%), online gaming (27%), financial services applications (23%);
Big- and small-ticket purchases were abandoned at similar rates;

- 66% of those who abandoned a mobile purchase went back to attempt it a second time, most switching to a computer to do so (36%), some trying again on their mobile phone (23%) and some switching to a tablet (7%).

Image via Shutterstock

Tags: cart abandonment, mcommerce, mobile transactions, research

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