Retailer announces strong revenues and earnings in 2012
Online retail giant eBay has announced stronger-than-expected revenues and earnings this week, which has caused shares in the company to spike by 8.5%. According to the company’s report, it has witnessed a 23% increase in its revenue in the second quarter of 2012. The report shows that the company’s net income has increased by 144% over the levels it had been in the second quarter of 2011. eBay CEO John Donahoe believes that he knows exactly why the company has experiences such promising growth
Mobile commerce cited as reason behind growth
Donahoe claims that mobile commerce is the reason behind the gains eBay has been experiencing in 2012. Earlier this year, the online retailer began making use of a PayPal payment system that allows consumers to make purchases using their mobile devices. According to Donahoe, mobile technology is beginning to change the world of commerce, allowing consumers to engage with companies in a new, more dynamic way.
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Mobile shopping beginning to become a popular trend amongst consumers
According to eBay’s report, over half of the $10 trillion spent on retail transactions in the U.S. last year came from consumers who accessed the Internet at some point during their shopping experience. Mobile search and commerce are beginning to take hold of consumers, who are finding that shopping online is more efficient and feasible than visiting multiple physical retail stores looking for the products they need. Companies like Amazon and eBay are poised to benefit from this trend as they are well suited to meet the needs of consumers engaged in online shopping.
eBay poised to capitalize on the rise on mobile commerce
Mobile commerce is expected to continue playing a larger role in the retail industry. As more consumers gain access to smart phones and other high-tech gadgets, mobile commerce is likely to become more commonplace. eBay is eager to put its mobile commerce strategies to use as more consumers begin turning to the online retailer to find what they need.