People are more attached to their smartphones than ever but recent analysis from Alliance Data shows that although 63 percent of millennials shop on them every day, only 39 percent of their total purchases are actually made online.
This trend is alarming news for online stores and vendors that are eager to get this targeted demographic to follow through on their online purchases. This data is also a little puzzling because this same age group is much more likely to use their phones to research products, comparison shop, and look for coupons online before heading into the physical store to buy the merchandise.
According to recent data from Osterman Research, online security could play a significant role in determining whether or not someone actually buys their goods online. They cite the 42.2 percent of millennials in America that have limited their purchases due to security concerns. Any data shared over the internet carries with it some risk of identity theft or fraud. In this case, increased use of security-focused shopping portals, coupled with better transparency of the website itself could help pave the way for peace of mind.
Perhaps more likely, CNET argues that many people turn to physical stores to complete their purchases simply because it can still be quite frustrating to input all the required information on a tiny smartphone keypad. Names, email addresses, passwords, physical addresses, and credit card numbers entered during checkout is a tedious process for all but the savviest users. Even using a desktop makes the process much more comfortable and the pictures are easier to view and navigate to boot.
For online retailers to secure their shoppers’ attention and wallets, the process of adding items to carts and checking out should be as seamless as possible. Integrating many different types of payment options, such as Paypal or Apple Pay, would also help entice people who trust a dedicated payment platform over an online storefront.