Strong results in mobile commerce and elsewhere still fail to meet expectations
eBay has become one of the major supporters of mobile commerce in the retail world. The online retail giant has identified the mobile space as one of its most lucrative and promising markets. Over last year’s holiday season, eBay experienced strong growth in mobile sales due to the various mobile commerce initiatives it had launched to attract consumers. The momentum the company generated last year carried into the first quarter of 2013, where sales reached impressive heights, but ultimately failed to reach eBay’s lofty goals.
Earnings fall slightly short though mobile commerce grows more popular
Earnings and revenue grew throughout the first quarter as many consumers continued to swarm eBay’s primary e-commerce site and make use of its mobile commerce application. Sales were strong throughout the quarter, with eBay noting a spike in mobile transactions being processed by PayPal. PayPal has become an integral part of eBay’s mobile commerce efforts. The payment processor is now being accepted in several physical stores, allowing consumers to use their PayPal accounts to purchase goods from their mobile device.
PayPal shows strong growth
While earnings may have been slightly off estimates, eBay has high hopes for the rest of the year and beyond. The company expects its revenue to reach $23.5 billion by 2015, a 67% increase over the revenue it had generated in 2012. eBay’s European business performed more modestly than its U.S. counterpart, but still managed to show strong results. The company notes that PayPal’s revenue grew 18% by the end of the first quarter.
eBay expected to continue focus on mobile space
Mobile commerce is expected to continue playing a significant role in eBay’s future. The company anticipates that it will see its highest mobile sales come during the holiday season at the end of the year. Last year’s holiday season proved that mobile commerce has a strong allure to a broad spectrum of consumers and eBay is expected to continue refining its approach to this field.