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The Mobile Conversion Gap: The Hidden Cost That’s Bleeding E-Commerce Brands

Sep 25

3 min read

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Woman shopping on her mobile phone

In today’s fast-paced e-commerce landscape, mobile devices have become the dominant platform for online sales. According to Forbes, mobile commerce (m-commerce) is expected to account for a massive 62% of all online sales by 2027. However, despite this growth, many brands are facing a serious issue: mobile conversion rates lag behind desktop by 40%.


What does this mean for your business? Simply put, it’s likely costing you thousands, if not hundreds of thousands, in lost sales every year due to poor checkout conversion.


The Mobile Checkout Conversion Gap


As consumers increasingly shop on their mobile devices, brands have a huge opportunity to capture sales. But converting those mobile visitors into paying customers is where the challenge lies. According to Statista, mobile retail commerce revenue in the U.S. alone is projected to reach $510 billion by 2023. Yet many mobile users still abandon their carts at significantly higher rates than desktop users due to frustrating checkout experiences, especially without efficient address lookup and address validation tools in place.


This gap between mobile and desktop conversion rates results in fewer completed checkouts, meaning lost revenue that could be directly impacting your bottom line.


Why Mobile Conversion Falls Behind Desktop


Several key factors contribute to lower mobile conversion rates compared to desktop:

  1. Complex Checkout Processes: Mobile screens are smaller, making it harder to navigate forms and input information. Without mobile-friendly checkouts and efficient postcode lookup or address autocomplete, users often abandon their carts out of frustration.

  2. Data Entry Errors: Entering address information manually on a mobile device increases the risk of errors, especially without intelligent address validation tools.

  3. Slower Load Times: If mobile sites are not optimized for speed, potential customers are more likely to leave before completing their purchase.


These barriers make it clear why brands are struggling to convert mobile traffic into sales.


The Hidden Cost of Failed Deliveries


Beyond the lost sales from abandoned carts, there’s an often-overlooked consequence of poor mobile checkout experiences: failed deliveries. Incorrect or incomplete address information leads to re-shipping costs, customer service interventions, and even the potential loss of future business.


Research shows that more than 20% of failed deliveries result from incorrect addresses being entered during checkout. For many e-commerce brands, these costs can quickly add up to tens of thousands of pounds annually.


How Zip2address Closes the Gap


At zip2address, we’ve built the only mobile-first address lookup solution on the market, designed to reduce friction at the critical checkout stage. Our solution helps e-commerce brands optimize mobile checkouts and minimize failed deliveries by offering:


  • Mobile-First Design: Our user interface is designed specifically for mobile users, making it easy to input addresses without hassle, increasing checkout conversion.

  • Accurate Address Data: We use top-tier sources like Royal Mail to ensure that every address is validated, reducing the risk of costly failed deliveries.

  • Higher Conversion Rates: By smoothing the checkout experience, brands using zip2address see higher conversion rates and fewer abandoned carts on platforms like Shopify and Shopify Plus.


The ROI of Mobile Optimization


Investing in a mobile-first address lookup solution like zip2address can deliver a significant return on investment. For every $1 spent, businesses typically see a $29 return, thanks to increased sales and fewer failed deliveries.


Conclusion


The mobile checkout conversion gap is costing e-commerce brands a significant amount in lost revenue. But with the right tools, like zip2address’s address validation and address autocomplete features, you can close the gap, improve your mobile checkout experience, and ensure more successful deliveries.


To learn how zip2address can help your business capture more mobile sales and eliminate failed deliveries, contact us today.



 

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Sep 25

3 min read

1

3

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