With smartphone adoption rates soaring across the globe, digital marketplace eBay predicts 2012 will be a stellar year for its mobile commerce and mobile payments channels.
During 2012, eBay predicts it will make US $8 billion globally in mobile gross merchandise volume (GMV)*, up 60 percent from US $5 billion in 2011, indicating the mobile age has well and truly arrived.
The company’s CEO, John Donahoe revealed these figures at the recent Las Vegas Consumer Electronics Show (CES). He also forecasted that total mobile payment volume* will reach US $7 billion, a sharp increase from the US $4 billion that came in via PayPal in 2011.
At the beginning of 2011, eBay predicted total mobile payment volume would reach US $1.5 billion. However, the company was required to modify that figure several times throughout the year as mobile growth rose dramatically. Considering total mobile payment volume for 2010 was $750 million, these figures demonstrate the way in which smartphones have vastly influenced consumer behavour towards the online mobile experience in a relatively short amount of time.
Donahoe also shared that eBay Mobile currently has more than 65 million downloads of it mobile applications across all platforms, and that more than 890,000 new eBay shoppers made their first eBay purchase via its mobile apps in 2011 – a 113 percent increase year on year.
For retailers still unsure about embracing mobile commerce, the reality is that it can no longer be viewed as a trend. Mobile is now a way of life and businesses that do not invest in becoming mobile savvy are simply missing out on opportunities and revenue.
* Please note, GMV is a measurement of the value of merchandise sold through an online retailer, an indication of traffic rather than earnings, as is total payment volume, which measures the amounts flowing through PayPal.
How does your business utilise the mobile channel and what kind of growth has it experienced over the past 12 months?