Online auction giant eBay reported a large spike in new users during the second quarter, according to a earnings report released yesterday – and a high percentage of those users came directly from the mobile side of their market.
“We’re a mobile commerce leader, adding more than 3 million new customers in quarter 2 through mobile,” said CEO John Donahue, speaking to a conference call of investors.
He added that almost 30 percent of eBay’s new users who signed up during the quarter had done so by using a mobile device.
“EBay and PayPal each expect to do $20 billion of mobile commerce and payments volume this year. And our global commerce platforms are a competitive advantage enabling commerce to happen anytime, anywhere.”
The findings continue to strengthen a realization made by most entrepreneurs over the past years: that online credit card processing, and mobile shopping options, are an integral part of any business, big or small.
JP Morgan analyst Doug Anmuth, speaking to Reuters, went to bat for the importance of online payment opportunities. He declared that eBay’s newfound mobile customers “would be a strong driver of growth as new users became more engaged.”
And eBay CFO Robert Swan, testifying to the longtime value brought on by mobile customers, stressed that these smartphone signups were primarily driven by the youth market. He said that the majority of these accounts were created by some of eBay’s youngest users. Despite their lower-than-average spending rates, he feels that these consumers are key to his company’s growth, and to their shift toward a more mobile marketplace.
“We like that … They may have less disposable income, but they are younger, and we love the lifetime value,” said Swan.Back To Blog