EBay CEO says mobile sales will reach $4B by year-end
EBay Inc. CEO John Donahoe said that eBay mobile global sales will double year-over-year, reaching approximately $4 billion in mobile gross merchandise volume by the end of 2011.
The $4 billion is double the $2 billion in global mobile sales that eBay achieved in 2010. EBay initially projected $1.5 billion in mobile sales for 2010, beating its own expectations at the end of last year.
?EBay mobile is continuing to see strong growth,? Mr. Donahoe said during eBay's earnings call. ?Once again while other retailers are formulating their mobile plans, consumers are actively buying and selling through the eBay mobile app."
PayPal mobile payments
The company also reported that PayPal continued to deliver solid growth in mobile payments and digital goods, with increased usage of Mobile Express Checkout, the PayPal Send Money apps and the newly-launched PayPal for Digital Goods service.
Last week eBay announced it will acquire Where to strengthen its position in local mcommerce and as a multichannel commerce partner for retailers and brands.
Where has a location-aware mobile application from which retailers and brands can target approximately 4 million users via geo-targeted ads, deals and offers. EBay will integrate PayPal into the Where app.
PayPal mobile payments will likely grow as a result of this acquisition.
PayPal?s mobile payment transaction volume has grown from $24 million in 2008 to $140 million in 2009 to $750 million last year. It is projected to top $2 billion this year and is expected to reach $7.5 billion in 2013.
Additionally, PayPal?s overall payment volume exceeded $92 billion in 2010, which represented 28 percent growth year-over-year, and 61 percent of eBay?s overall volume.
EBay mobile shopping
In 2010, mobile shopping grew exponentially and eBay reports that its applications have achieved more than 30 million downloads worldwide.
The company said that users from more than 190 countries used its mobile applications last year.
In 2010, eBay expanded its presence to five major mobile platforms, which has led to greater adoption of its applications.
Apple iPhone users lead the way in mobile shopping on eBay. In fact, since its initial release in 2008, eBay claims that more than 15 million people downloaded its iPhone application.
EBay launched mobile applications for the Android, BlackBerry and Windows Phone 7 operating systems in 2010.
?We see strong, accelerating momentum across multiple mobile devices and in almost every geographic market around the world,? Mr. Donahoe said. "We are on track to double eBay?s mobile gross merchandise volume to $4 billion in 2011."