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.
Mobile commerce becoming influence by social networking
Mobile commerce is growing more prolific around the world. It is becoming increasingly important for retailers and large brands to begin accommodating the needs of a growing consumer base that is tethered to mobile technology. As businesses begin to focus more on mobile commerce, consumers are also becoming increasingly reliant on the information they can find online, bringing more attention to the concept of social commerce. Social networks and other forms of online engagement are aiding in the continued evolution of mobile commerce by introducing more dynamic aspects to this still emerging sector.
Social commerce begins emerging among consumers
The concept behind social commerce is relatively simple: Consumers are able to find reviews for products on social networks and use this information to make informed purchase decisions. Peer reviews of products and services have long been valuable to consumers. These reviews often determine whether or not a consumer will purchase a particular product or support a particular brand. Bad reviews have, in the past, meant significant loss for a wide range of brands. As these reviews become increasingly mobile-centric, they are beginning to affect the purchasing habits of consumers.
Social media provides new platform for peer reviews
The average consumer relies heavily on social media to stay connected to friends and family as well as attain information of subjects they may be interested in. Consumers tend to share a great deal of information through social networking sites like Facebook and Twitter, and this sharing often includes information concerning the products they purchase. A recent study from Reevoo, a market research firm, shows that a growing number of consumers are accessing product reviews from their mobile devices. The report also shows a major spike in the reviews that consumers are posting from mobile devices. According to the report, reviews from mobile devices have grown by 212% since September 2011.
Social media may become intertwined with mobile commerce
Mobile commerce is becoming a more prominent part of the lives of consumers, which in turn is leading mobile commerce to become a more prominent part of social networking. Mobile commerce itself refers to much more than payments being made from a smartphone or tablet, it also encompasses mobile shopping and banking. Because of the always-connected, always-online nature of mobile commerce, social networking may soon become a major part of the way people use their mobile devices to purchase, review, and search for the products they may be interested in.
