John Donahoe, eBay’s chief executive tells us that “Mobile is becoming the digital nexus of consumers’ lives. They want what they want when they want it.” He expects that the company will see $10bn in mobile transactions this year, which is more than double the 2011 figures. (www.ft.com)
eBay continues to streamline and improve their website to increase traffic, and have now developed a PayPal point of sale service (PSS). This PSS allows PayPal to be used as an in store payment method simply by waving a smartphone at cash registers. Abercrombie & Fitch use PSS in 900 of their stores, and Joseph A Banks use the service in 500 stores.
However, Mr Donahoe expects that the high profit levels will not continue for the second half of the year due to the macroecnomic environment in Europe and the Olympic games.
Further profit hindering could be felt from eBay fending off US legislation for a federal online sales tax. Mr Donahoe also pushes focus towards protecting SME’s from this taxation, as eBay works with lawmakers in California.
In summary, this amounts to not only more eBay shoppers but more internet shopping. As e-retailing increases it should become ever prevalent to online retailers that the use of high speed trading tools such as seller dynamics will become a necessity.