728_header.jpg (23748 bytes)
 EB Blog 
 AB Blog 
EcommerceBytes-NewsFlash, Number 2851 - July 19, 2012 - ISSN 1539-5065    2 of 4

Mobile to Double to $10 Billion for PayPal and eBay

By Ina Steiner
July 19, 2012

Email This Story to a Friend

eBay expects its mobile volume for both eBay and PayPal to double this year. eBay CEO John Donahoe said, "We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 - that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago."

Donahoe said sellers list almost 2 million items each week on mobile devices. Mobile also attracts new customers - 600,000 new customers made their first purchase on eBay through mobile apps, he said.

eBay has been unable to state how much mobile actually adds to its bottom line and when asked again on Wednesday if mobile revenue was incremental, Donahoe said, "one of the decisions we made early on in mobile that has served us very well is from the beginning, we said, "We're not going to worry if it's incremental or not."" However, he said eBay has found that merchants who add PayPal Mobile Express Checkout on their mobile websites or on a mobile app see conversion go up, "because it's very proven that consumers don't want to enter in their credit card information into a mobile device, and PayPal is the safest way to pay. And we think conversion can go up to 10%, 20%, 30%."

Donahoe said mobile shoppers use PayPal for a significant portion of eBay transactions, "but what's really growing is PayPal off of eBay on the mobile arena."

For both eBay and PayPal, mobile shoppers and mobile payers are 3 - 4 times more valuable than Web-only, because they're more engaged and they're buying more. "I can't underestimate the importance of mobile to what we see as the future of commerce and payments," said Donahoe.

eBay mobile apps have been downloaded nearly 90 million times globally since the launch of mobile in the third quarter of 2008.

See EcommerceBytes' report on the eBay second quarter financial report, and leave a comment on the EcommerceBytes Blog.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

You may quote up to 50 words of any article on the condition that you attribute the article to EcommerceBytes.com and either link to the original article or to www.EcommerceBytes.com.
All other use is prohibited.

Email This Story to a Friend
Email this story to a friend.

2 of 4

Sponsored Ad