Poor Mobile Experience Leads to $24bn Loss for US Retailers

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A recent study conducted by Jumio reveals the detrimental effects of a poor mobile experience on US retailers, resulting in a staggering loss of $24 billion in revenue annually. This article delves into the key findings of the study, shedding light on the significant impact of subpar mobile navigation, slow load times, and complex checkout systems.

The Dominance of Apparel in Online Retail

In the realm of online retail, the apparel sector holds the largest market share in the United States. Surprisingly, this sector alone suffers a 60% loss of business, with three out of five customers abandoning websites during the purchase of clothes, shoes, or accessories. The abandonment rates vary depending on age and gender, with 68% of women leaving mid-transaction compared to 51% of men. Notably, 78% of female millennials fall under the category of early abandoners. However, the study indicates that retailers utilizing mobile checkout effectively have the potential to maximize their returns.

Abandonment Rates Across Different Purchases

Interestingly, the trend of abandonment remains consistent regardless of the purchase size. Whether it’s movie tickets, online food orders, or travel packages, approximately a quarter (23%) of online shoppers abandon their transactions prematurely due to complex checkout processes. Even more noteworthy is that a significant portion of these abandoned carts contains items valued at $100 or more, highlighting the substantial impact on revenue.

Here are few reasons stated by the study that shows why most people leave shopping mid-way while using their mobile devices:

  • Key Factors Influencing Mobile Abandonment

    The study highlights several reasons why users tend to abandon their shopping sessions while utilizing their mobile devices. Understanding these factors is crucial for businesses aiming to enhance their mobile checkout experiences. Here are the key findings:

    1. Delivery Process Uncertainty (45%): Many users expressed concerns about the post-purchase delivery process, leading them to abandon their transactions.
    2. Perceived Lengthy Delivery Time (36%): Users often believe that mobile transactions result in longer delivery times, deterring them from completing their purchases.
    3. Slow Loading Speed (36%): A significant percentage of users found mobile sites to be excessively slow, causing frustration and prompting them to abandon their transactions.
    4. Difficulty in Navigation (31%): Users encountered difficulties navigating through mobile sites, hindering their ability to find desired items and ultimately resulting in abandonment.
    5. Unexpected Delivery Charges (29%): Unforeseen delivery charges presented a common reason for transaction abandonment among mobile shoppers.
    6. Challenges with Typing on Small Screens (28%): Users often found it arduous to input information accurately due to the limitations of small mobile screens.
    7. Confusion and Difficulty Finding Items (27%): Some users reported feeling entirely confused while browsing mobile sites, struggling to locate the items they intended to purchase.
    8. Payment Security Concerns (27%): Security concerns surrounding payment information acted as a deterrent for users, discouraging them from completing transactions on their mobile devices.
    9. Reluctance to Share Personal Details (26%): A significant portion of users expressed discomfort in providing their personal details during the checkout process on mobile sites.
    10. Complex Payment Process (22%): Users often found the payment process on mobile platforms to be overly complicated, resulting in abandonment.

The Need for Seamless Mobile Checkout Experiences

Marc Barach, Chief Marketing Officer at Jumio, emphasizes the importance of prioritizing mobile checkout experiences to address the rising number of abandoned purchases and lost revenue. While there has been a commendable 10% improvement in abandonment rates over the past two years, businesses must strive for even more seamless mobile experiences. By doing so, retailers and financial services providers can regain the significant opportunity for growth and recover the estimated $25 billion currently lost.

Abandonment rates by sector:

  • Abandonment Rates by Sector

    The study also provides valuable insights into abandonment rates across various sectors:

    • Retail/Apparel: 60%
    • Food (groceries or takeout): 41%
    • Travel: 41%
    • Household items: 39%
    • Event tickets (concert, sporting event): 39%
    • Entertainment purchases: 39%
    • Electronics: 35%
    • Online gaming (Opening an account): 27%
    • Applying for financial services account (opening an account, money transfer): 23%

    Understanding these sector-specific abandonment rates can assist businesses in tailoring their strategies to address the unique challenges faced within each sector.


the study conducted by Jumio underscores the significant negative impact of a poor mobile experience on US retailers. By recognizing the key factors contributing to abandonment and prioritizing the improvement of mobile checkout experiences, businesses have the opportunity to recover lost revenue and provide customers with seamless transactions. With the continuous growth of mobile transactions, it is imperative for retailers and financial service providers to invest in optimizing mobile experiences and ultimately secure their position in the competitive online retail landscape.

To ensure your business stays ahead in the digital realm, it is essential to connect with Capital Numbers—an industry leader in mobile app development services. By leveraging our expertise, you can enhance your mobile platform, offer a user-friendly experience, and maximize conversions. Don’t miss out on the opportunity to elevate your business to new heights. Contact us today and unlock the full potential of your mobile presence.


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