It has been estimated that £2.5 billion could be missed by companies that overlook consumer expectations.
This year is expected to represent the holiday shopping season in which mobile commerce will play the most vital role in the history of online purchasing, but a recent analysis by Jumio, Inc. has suggested that retailers remain unprepared and will pay the price for it.
Outdated mobile checkout experiences will cost retailers an estimated £2.5 billion this holiday season.
That is the figure that Jumio has stated will be missed by retailers as a whole, as a result of having failed to keep up with consumer expectations in terms of the mobile commerce checkout experience. The outcome will be a tremendous loss in potential sales that shoppers would have otherwise intended to make if the process was brought up to date with their needs for convenience, ease, and security.
At the same time, retailers that are prepared for mobile commerce sales will take in almost £5 billion.
That amount in m-commerce sales represents a year over year increase of 64.8 percent in mobile device based purchases during the holiday season. At the same time, a recent survey conducted by Harris indicated that 47 percent of shoppers will abandon their smartphone based shopping carts due to checkout friction. They simply drop out of the transaction altogether when the checkout and payment experiences are not up to their expectations.
What’s worse for those retailers that aren’t providing the mobile shopping experience that their customers expect, is that according to that same Harris research, 57 percent of those who have abandoned their carts will not return a second time to attempt to complete the transaction over a laptop or desktop computer. This was how the £2.5 billion figure was calculated in lost sales for UK retailers during the hottest holiday mobile season in history.
According to the chief marketing officer at Jumio, Marc Barach, who spoke about this mobile commerce study, “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.”