Mobile Transaction Abandonment Rate Before Checkout Reaches 58%
As the use of smartphones grows around the world, so does the amount of mobile purchases. However, recent research also indicates that as the number of mobile market grows, shopping cart abandonment for mobile transactions has become worrying high, according to research published in the MEF Mobile Money Report.
Mobile Shopping Has Arrived
6,000 consumers across five countries were interviewed as part of the report. Most of the people surveyed (78 percent) said that they had made a mobile transaction, and this reflects the overall growth in mobile sales.
The research also showed more people were using their mobile phones to make transactions in store, with 18 percent saying they had made a physical purchase.
However, the research also showed most mobile consumers had abandoned their shopping cart rather than complete a purchase.
Why Are Mobile Shoppers Abandoning Their Carts?
Many of the reasons are the same as regular e-commerce shoppers. Some shoppers find the checkout process too complicated. Others felt they were being asked for too much sensitive information, while others felt it took too long to pay. Some consumers simply abandoned a cart because they changed they mind about a purchase.
This mirrors earlier research by eWEEK, which showed similar numbers (56 percent) had abandoned a mobile transaction. The main concerns cited were again difficulties with checking out, slow loading times and security concerns.
And Junio estimates that retailers and financial institutions lost out on more than $24 billion in revenue due to the poor mobile experience that is being offered to consumers, with security concerns again coming high on the list.
E-Commerce Shopping Cart Abandonment
Although the figures for mobile shopping abandonment seem high now, they are likely to increase as smartphone adoption climbs and mobile shopping becomes the new normal way to shop.
However, as things stand, mobile shopping abandonment is lower than that of e-commerce shopping, which, depending, on which statistics you read, varies between 59.80 percent and 80.30 percent.
With online shopping, the reasons for abandonment are slightly different, with extra costs like shipping being the number one concern. However, long/complicated checkouts made it into the top three, and 35 percent cited having to set up an account as a reason for abandoning a shopping cart.
With online shopping, a poor check out experience is one of the problems that is repeatedly highlighted for cart abandonment, and it is estimated that by making some changes, e-commerce owners could increase checkout conversions by 35.26 percent. Merchants with a mobile site can also learn from this, and optimize their site to give mobile users the best possible user experience at checkout.
Rise of M-Commerce
The rise in mobile shopping shows no signs of declining. It is being fuelled by several factors, including the rise in mobile apps and a need for added convenience as more consumers look to do their shopping on the go.
In addition, consumers are increasingly at ease with using mobile apps for making mobile payments, and eMarketer predicts that the U.S. mobile payments market will be worth more than $62 billion by the end of 2017.
Mobile devices are also experiencing significant growth in developing markets, despite the challenges of poor Internet connections and infrastructure in some countries. Uptake has been strong and entrepreneurs, and marketers are increasingly seeing the potential opportunities of targeting developing countries.
By 2020, m-commerce transactions are predicted to make up nearly half of online retail sales, and smartphone shopping is on course to have trebled by then, according to a recent report from OC&C Strategy Consultants, Google, and PayPal UK.
The research also highlights how UK retailers have work to do if they are going to improve load times, and slow check out times are a problem area, too.
And with the increase in mobile shopping comes a need to make sure your site it optimized to manage mobile sales.
Combat Your Cart Abandonment Rate
Research across mobile and e-commerce consumers shows a common theme: the more complicated it is to check out and the longer it takes, the more likely a consumer is to abandon their cart. Surveys show this year after year, yet merchants still don’t make the simple changes that could reduce mobile cart abandonment.
Follow these tips to help make the checkout process easier for your customers and boost sales:
- Don’t insist on making your customer registering before they can buy. This is off-putting for shoppers as they are concerned they’ll be inundated with promotions and offers, and it’s time consuming too.
- Make sure the checkout process is mobile-friendly. The more steps a consumer needs to take to checkout, the more complicated you make it. Moreover, the template you use for your e-commerce store might not be suitable for your mobile store. So, be sure your site’s checkout process passes the mobile-friendly test, as well as making sure it’s responsive so that everything adapts and corresponds correctly across the board. Further tips to enhance your mobile-friendly checkout process are available here.
- Address slow speed times. Consumers who depend on mobile payments are making payments on the go. They don’t appreciate slow speed times, so check bandwidth and maximize speed times to avoid these problems.
- Use a payment gateway. Offering a payment gateway allows you to provide a variety of payment options to your buyers, while providing a secure environment for them to pay in, thus allaying any concerns they might have over security. It also makes the checkout process simple for your customer.
As the use of smartphones continues to grow, so will mobile shopping. However, this means the issue of cart abandonment will too.
These problems are multi factorial. Some of them stem from a complicated checkout process, or load time times aren’t quick enough for busy consumers on the move. However, many of the reasons behind mobile cart abandonment are the same as e-commerce abandonment.
Some retailers expect shoppers to register first, some websites make the checkouts too complicated by including too many steps, and there are still some concerns over just how secure mobile shopping is. However, by fixing these common issues, you can lower your risk of mobile cart abandonment and boost your mobile sales.