Here’s an interesting percentage: 71.2%. Any guesses as to what it is? It’s the proportion of online sales that that are abandoned. The same survey estimates that $4tn of products will be abandoned in 2015.
It’s the number one headache of any merchant with an online presence. So it absolutely has to be the number one focus of any merchant looking to improve their bottom line.
A 2013 survey looked into the reasons why people abandoned their carts before completing their purchases. For the merchants, not all abandonment is solvable, but the majority is.
The number one reason was hidden costs with 56% of respondents saying this is what has caused them to abandon a purchase. That’s solvable if merchants have transparent prices. The next two reasons (just browsing, 37% and found a better price elsewhere 36%) are down to the fickle customer and merchants can’t really do anything about that. The survey goes on to cite reasons such as poor delivery options and poor website design, again, fixable by the merchant. There really should be no excuse for websites that are difficult to navigate and not optimised for mobile devices.
One area of special concern to Jumio and one where we can make a real impact on helping business resolve is security.
18% of those who abandoned sales cited “excessive security” at checkout while 17% cited concerns about the quality of the payment security. So, problems with payment security caused 35% of people surveyed to abandon a sale. That’s more than a third. And 35% of that $4tn is $1.4tn.
Of course, these figures are estimates but there is no doubt that addressing these security concerns is a step in the right direction to fighting back against abandoned carts.
The paradox of online commerce is that while consumers expect transactions to keep their details secure, they find security frustrating. They know that security is critical to every transaction but it should be frictionless. They want it to be unobtrusive. And, when it is not unobtrusive, it is causing them to give up on sales.
Jumio’s solutions make it possible to combine cutting edge verification security that doesn’t cause headaches to customers looking to complete purchases quickly and easily. What’s more, these solutions work on both mobile devices and computers.
To put it simply, we can help you save that £1.4tn!