Jumio Estimates Retail Losses Tied to Shopping Cart Abandonment to Account for Upwards of 27 Percent of Total 2014 Holiday Mobile Commerce Sales
Palo Alto, Calif. – Oct. 21, 2014 – With the holiday retail season about to get underway, Jumio, Inc. today released its mobile commerce analysis that finds that although U.S. retailers are expected to enjoy the most successful mobile holiday shopping season ever, they will miss out on up to $8.6 billion in sales due to the prevalence of outdated mobile checkout experiences.
Data released by the National Retail Federation shows that holiday sales for 2014 are predicted to rise to $616.9 billion, a 4.1 percent increase over 2013, including up to $105 billion in online sales. According to IBM’s holiday predictions, 20 percent of online U.S. sales during the fourth quarter will be made on mobile. But recent reports find between 47 and 72 percent of shoppers abandon purchases on mobile devices due to checkout friction, with that number only expected to grow. In addition, the majority of shoppers (57 percent) do not attempt the transaction later on a desktop computer, meaning between $5.6 and $8.6 billion in the form of lost sales stands to be left on the table by U.S. retailers this holiday season.
“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, Chief Marketing Officer, Jumio. “While mobile apps have transformed the ecommerce 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 to revenue lost due to friction at the time of checkout, retailers risk losing money on future purchases as well, with 63 percent of consumers less likely to buy from the same company via other purchase channels after abandoning a mobile transaction due to a poor experience, according to the recent Harris Poll. Nearly one-half of consumers (47 percent) said they failed to complete a purchase because the checkout process took too long. Other reasons shoppers fail to complete a mobile transaction include:
• 41 percent said the checkout process was too difficult on their device
• 23 percent said they failed to complete their purchase because it would not go through
Jumio today also introduced BAM Checkout (hyperlink to final release), a comprehensive mobile checkout offering to increase transactions while reducing fraud. For more information, please visit: (hyperlink to final product page on Jumio site).
Jumio is a next-generation payments and ID software-as-a-service company that utilizes proprietary computer vision technology to reduce mobile/online payment and ID friction and fraud, while increasing revenue and customer satisfaction. The company’s mission is to provide its clients with intuitive, consumer-facing technologies that make it possible to conduct a wide range of mobile transactions without a single keystroke. Half of the top 10 consumer internet companies, along with hundreds of other retailers, financial institutions, marketplaces, gaming companies and more have adopted Jumio products and services to help speed through customer sign-up and checkout processes, and drive higher completion rates and satisfaction. Jumio has received numerous innovation awards from leading industry associations and is listed on The Sharepost 100 as one of the world’s most innovative and compelling private companies.
Jumio’s flagship products include BAM Checkout™, which enables customers to complete a mobile checkout in seconds by scanning their credit card (utilizing Jumio’s award winning technology Netswipe) and driver license, resulting in increased revenue and reduced fraud for the merchants. Netverify® for web and mobile supports real-time ID verification of credentials issued by over 120 countries to help clients meet a variety of know-your customer requirements.
Jumio was founded in 2010 by CEO Daniel Mattes and is backed by top tier investors including Andreessen Horowitz, Citi Ventures and Facebook Co-Founder, Eduardo Saverin. Headquartered in Palo Alto, Jumio operates globally with offices in the US and Europe and processes credentials issued by over 100 countries.