It is shaping up to be a banner year in mobile sales for eBay. This week, the online marketplace’s CEO, John Donahoe, revealed that eBay will have done $5 billion in business this year via mobile phones. eBay owned PayPal isn’t far behind with $3.5 billion in mobile payments for the calendar year.
The smartphone boom and corresponding popularity of eBay’s mobile applications have made this impressive feat possible. Donahoe admits that that eBay’s applications for iOS, Android and Windows Phone have been downloaded in excess of 56 million times.
“We are seeing profound change in how consumers are behaving and will behave. We believe we are at an inflection point,” Donahoe reportedly said this week at the Open Mobile Summit. Our perspective on mobile is that it’s not incremental, it is another screen in the shopping experience. It’s a consumer that is coming back more frequently and shopping more because now it can be done at any time of the day. We know it is driving consumer engagement and customer value.”
The eBay chief added that e-commerce is a $350 billion business, representing 4% of total retail. The industry is losing its “e,” Donahoe suggested, noting that retail and e-commerce are now becoming fused together as “the line between online and offline is blurring.”
“We believe that there will be more changes on how consumer shop and pay in the next three years than there have been in the past ten or twenty years, consumers are in charge, technology enables it and eBay we are simply a technology platform that helps consumers to get what they want, when they want it, how they want it and helps merchant compete in this new commerce environment and we will never compete with them,” Donahue concluded.