Tag: ebay

Mobile commerce may be at risk due to US legislation

| April 23, 2013

Mobile Commerce new legislationMobile commerce could lose traction as byproduct of new legislation

It is not unusual to see businesses get involved in U.S. politics for one reason or another, but eBay is one of the companies that has avoided this involvement in the past. This is due to the fact that there are relatively few laws in the U.S. that govern the world of e-commerce, as well as that of mobile commerce. The laws that do exist have helped create an atmosphere where companies and consumers can conduct business in a balance manner. A new legislation in the U.S. is causing eBay some concern, however, and may even put a damper on the company’s interests in mobile commerce to some degree.

eBay moves to fight Marketplace Fairness Act

eBay CEO John Donahoe has taken issue with legislation known as the Marketplace Fairness Act. Donahoe claims that this legislation will put unfair burdens on all small online merchants. The legislation is designed to provide states the authority to compel online retailers to collect sales tax, even if that retailer is not based within the boundaries of a particular state. Currently, states only impose this authority on physical merchants doing business within state borders. Donahoe claims that the legislation will make it very difficult for online merchants to do business and could severely limit their ability to cater to a large, national market.

Retailer taps users to combat legislation

Donahoe has sent out emails to eBay’s 40 million users, asking for support in opposing this legislation. The legislation could potentially have a significant impact on the mobile commerce space, as it is designed specifically to address issues that exist in e-commerce. Mobile commerce is becoming increasingly popular among consumers, with many favoring to shop online and purchase products using their mobile devices rather than their computers.

Sales tax may make mobile commerce less popular

Imposing a tax on online sales without recognizing any jurisdictional boundaries may make it extremely difficult for mobile commerce to find a significant level of growth in the coming years. One of the reasons mobile commerce is so popular in the U.S. is tied directly to the popularity of e-commerce. That is that state-based sales tax is not collected through purchases made online from digital retailers.

Mobile commerce helps eBay see strong first quarter results

| April 23, 2013

eBay mobile commerceStrong 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.