Shoppers to Spend $400 Million on eBay Using Its iPhone App

By Robin Wauters

Holy m-commerce, Batman!

According to eBay (EBAY) CEO John Donahoe, shoppers have already spent about $400 million on the popular commerce site using the company’s free iPhone application. Ok, the shopping part of eBay’s business brought in $1.4 billion in revenue just last quarter, but who would have predicted around half a billion dollar in sales a year would be recorded through the eBay iPhone app when it debuted on the App Store?

The number pales in comparison with eBay’s total sales ($59.7 billion last year), but it’s fairly significant considering the fact that the iPhone has a relatively small market share – about 15% of the smartphone segment – and mobile payment transactions are still new to many.

According to this report by the Financial Times, some wealthy people have used the mobile app to buy a Lamborghini, a Bentley and a $150,000 boat. And if Mobile Marketer heard Donahoe right when he talked numbers at a summit in Las Vegas, the Lamborghini went for $350,000. Talk about being at ease with making purchases from mobile devices.

Most likely, these are the high-profile exceptions to the rule and most people use the app to buy books, clothing and electronics much like regular eBay shoppers do. In total, approximately 4.6 million iPhone owners have downloaded and installed the app to date.

Donahoe also said eBay will soon be introducing the next version of the app with improved functionality and features.

Original post

Comments

[Patricia013:]

They better pull something out of their hat - right now they're circling the drain no matter how much analysts try to hold them up. For the past two years Ebay has been its own judge and jury and has been purposely killing off its own business and alienating its own customers (the sellers who PAY them for service!. As a small seller I have no pity for them...none at all! They deserve what they brought on themselves!

Oct 26 11:56 AM

[jack dee:]

just want make sure I understand Pattricia013 correctly,

A 30 billion dollar company , with a 100%+ gain off stock low and projetcted growth and she says ebay is "circliing the drain" ?

Sounds more like a miffed seller with an axe to grind than an investor.

Yep ebay does face growth issues and appears to lack a real plan to leverage its base of users, but this is not a distressed company, merely one with a lack of vision.

Oct 26 12:34 PM

[Patricia013:]

I'm an 11 year ebay seller and if you did some research you would see I am far far from a miffed seller and far far from the only seller with this opinion. Ebay has been dreadfully mismanaged for the past two years - they want to be like Amazon...no, like Walmart....no, like Cosco....no, like Overstock!!!!! By this time Bubbles the Chimp would have come up with a solid business plan! Each quarter has shown a decline in their core - the very heart of Ebay. They are not improving - they are just covering up their failure with smoke and mirrors. I made lots of money on Ebay - I would like to do so again. If they don't change their management soon they will go right down the toilet. Right now, Skype and Paypal are holding them up. Skype is due to be sold and Donahoe has already said selling Paypal is a distant possibility! These are facts I base my opinion on.

Oct 26 12:45 PM

[Paul Zimbardo:]

I do not know who this is more impressive towards: Apple or eBay?

I would have to say Apple. I assume that the eBay bidders would just find some other way to bid if it were not for the iPhone/iPod Touch.

Oct 26 01:57 PM

[jack dee:]

clearly you ARE miffed with ebay,

>>>> made lots of money on Ebay - I would like to do so again<<<

so like I said, "axe to grind"


On Oct 26 12:45 PM Patricia013 wrote:

> I'm an 11 year ebay seller and if you did some research you would
> see I am far far from a miffed seller and far far from the only seller
> with this opinion. Ebay has been dreadfully mismanaged for the past
> two years - they want to be like Amazon...no, like Walmart....no,
> like Cosco....no, like Overstock!!!!! By this time Bubbles the Chimp
> would have come up with a solid business plan! Each quarter has shown
> a decline in their core - the very heart of Ebay. They are not improving
> - they are just covering up their failure with smoke and mirrors.
> I made lots of money on Ebay - I would like to do so again. If they
> don't change their management soon they will go right down the toilet.
> Right now, Skype and Paypal are holding them up. Skype is due to
> be sold and Donahoe has already said selling Paypal is a distant
> possibility! These are facts I base my opinion on.

Oct 26 02:08 PM

[Patricia013:]

jack dee - what you post is of no concern to me - so, whatever makes you happy! Ebay is STILL in dire straits and needs a decent business model no matter what you say! Has anyone bothered to count up the revenue LOST by Ebay's current management? You can chose to pick an argument with me but the facts remain the same. LOL

Oct 26 02:14 PM

[Bob C:]

eBay's CEO John Donahoe needs an iPhone App for common sense, since he has none!

Yes jack dee, I'm another "miffed seller with an axe to grind"
There are hordes of us, so get used to it.

Amazon is eating eBay's breakfast, lunch, dinner, and in-between meal snacks due to Donahoe and his cohorts.

Oct 26 08:03 PM

[ebay_trustee:]

"According to eBay (EBAY) CEO John Donahoe, shoppers have already spent about $400 million on the popular commerce site using the company’s free iPhone application."

What SEC filing does this figure appear? Don't want this to be another vaporous figure Ebay pulls out of thin air.

jack dee
^^^^ Ebay stock stumper ^^^^

You'll find equally amusing words and posturing from folks with similar motives, under ancient history of AOL stock.

Oct 26 08:43 PM

[Jon T:]

Just more evidence that the iPhone is a massive game changer.

And more impressive is that after 2 years nothing else has come close - to version 1 let alone subsequent versions.

Oct 27 08:23 AM

[Philip Cohen:]

The Diamond PowerSellers are doing very well on eBay too, so says eBay ...

How to become an eBay Diamond PowerSeller—the unscrupulous eBay way, at
www.auctionbytes.com/f...

And I'm nor a disgruntled eBay seller, I'm a disgruntled eBay buyer ...

Oct 27 08:41 AM

[mollytjm:]

i design exhibits and use ebay all the time to secure artifacts i never could afford any other way. in 3 years of buying and a lot of $$$ later, i'm extremely happy with ebay and would hate it if they left the marketplace. i'm not connected with anyone at ebay and i don't know about their business model. i invest in tech stocks, mainly APPL, but i do understand why so many people shop ebay with apps.

the company may need structural help but i can tell you that LOTS of people shop there first which explains why so many got the app on the iPhone.

Oct 27 10:01 AM

[donewith_ebay:]

"in 3 years of buying and a lot
of $$$ later, i

Oct 27 01:36 PM