According to a new report, Mobile Checkout, from Business Insider, our dependence on smartphones is increasing, but we don’t make many purchases using these devices. Why? The friction of smaller screens, security concerns, and slower connections. One-click payment options, omnichannel marketing, mobile wallets, point-of sale financing options, and mobile optimized site search can help address these concerns.
68% of US adults (and 85% of those under 50!) now own a smartphone. However, while we now spend over 51% of our screen time on mobile devices, most of our eCommerce purchases are still on the desktop. Consideration (“add to cart”) and conversion rates (“purchase”) are much higher on desktop devices. According to the Business Insider report, desktop users add 11% of products viewed to their carts, vs. just 6% of smartphone users. Desktop users purchase 3.7% of products during their session, vs. 1.3% of smartphone users. According to Custora, in November 2015, 70% of eCommerce sales were made on a desktop, 19% on a smartphone, and 10% on a tablet.
Why is the conversion rate so much lower for mobile devices? In a word, increased friction, or difficulty completing the transaction. Here are five specific reasons:
1. Small screen size. Prospective customers can’t see product detail or are unable to navigate quickly between screens.
2. Complex checkout or shipping options. Annoying enough on a desktop, these are deal killers on mobile devices.
3. Speed. Desktop connections such as Ethernet (download speeds up to 100 gbps) and WiFi (54-600 mbps) are much faster than the 1-8 mbps common on mobile networks such as 3G/4G.
4. Security. Prospects feel that their data is less secure when connected to mobile networks.
5. Financing. 37% of US consumers have used point-of-sale financing in the last 12 months or plan to use it next year, and 25% expect retailers to offer it.
Here are six ways that online retailers can reduce friction and increase their mobile sales:
1. “Buy now” buttons on mobile-optimized platforms like Facebook, Twitter, and Pinterest.
2. Expediting mobile checkout via one-click purchasing (allowing users to save their username and password in both the mobile browser and in apps).
3. Mobile wallet options – such as Apple Pay, Android Pay, or “tap to pay.” These options are convenient, and they are also typically more secure than EMV chip card technologies, because of the way they store, encrypt, and transmit user data at point-of sale.
4. Omnichannel purchasing. For example, a prospect could store their credit card information in a retailer’s online account, then scan a QR code with their mobile phone in a store to “buy now.”
5. Simplified financing options for mobile, such as the “pay in 14 days” offer at Klarna Checkout.
6. Mobile site search, with simplified navigation, intelligent search and merchandising, and optimized file sizes for images. You didn’t think we’d forget site search, did you? Check out the speed, clarity, and simplicity of chucklevins.com (our Mobile Site Search customer) on your smartphone, and you’ll see what we mean.
At $35 billion or so, mobile is already critically important to retailers’ sales. But it’s about to get 8X more important, in a hurry. Business Insider projects that by 2020, mobile commerce will account for 45% of the $632 billion in total eCommerce sales. Are you ready? Book a 20-minute online demo if you’d like to see how Nextopia can help.