Mobile spending grows, but retailers miss out on a significant opportunity
The 2013 holiday shopping season has proven to be quite successful for most retailers and brands. A recent report from comScore show that online spending passed $46 billion during the holiday season while another report from the National Retail Federation notes that overall spending reached $601 billion. Mobile spending has grown significantly in 2013, but Jumio, a market research firm, has released a new report that suggests that mobile commerce has missed a major opportunity.
Mobile commerce misses out on $16 billion
According to the report from Jumio, mobile commerce missed out on $16 billion over the 2013 holiday season. Overall, the report shows that mobile spending has grown, but many consumers have reported a lackluster experience with their shopping experience. Mobile shopping platforms from retailers were launched late last year in order to attract the mobile audience, but these platforms were hastily developed and some were crippled by glitches that prevented people from purchasing products.
Abandoned carts may be the culprit behind the loss of revenue
The problem may lie with abandoned shopping carts. Carts are quite common in e-commerce and they serve as a place where products are stored before the checkout process has been finalized. Jumio suggests that consumers running into significant problems on mobile commerce platforms often caused them to abandon their online shopping carts. In many cases, platforms failed to store product information properly, causing consumers to abandon their digital shopping carts and start the process from the beginning.
Poor shopping experience cause consumers to drop mobile commerce
The report shows that some 51% of consumers opted to abandon their digital shopping carts because of security reasons. These people did not believe that a mobile commerce platform would be capable of keeping their financial information safe. Some 47% abandoned carts because of difficulties regarding mobile payments, while 41% claimed that a mobile commerce platform they were using was simply too difficult to manage. Another 23% of consumers reported that their transactions would not go through during the checkout process, causing them to seek out more convenient forms of shopping.