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Monday, November 2, 2009

eBay Made $400 Million This Year From Its Free iPhone App


According to eBay CEO John Donahoe, shoppers have already spent about $400 million on the popular commerce site using the company’s free iPhone application.

The number pales in comparison with eBay’s total sales figure ($59.7 billion last year), but it’s fairly significant considering the fact that the iPhone has a relatively small market share – about 15% of the smartphone segment – and mobile payment transactions are still new to many. Who would have predicted around half a billion dollar in sales a year would be recorded through the eBay iPhone app when it debuted on the App Store last year?

According to this report by the Financial Times, some wealthy people have used the mobile app to buy a Lamborghini, a Bentley and a $150,000 boat. And if Mobile Marketer heard Donahoe right when he talked numbers at a summit in Las Vegas, the Lamborghini went for $350,000. Talk about being at ease with making purchases from mobile devices.

Most likely, these are the high-profile exceptions to the rule and most people use the app to buy books, clothing and electronics much like regular eBay shoppers do. In total, approximately 4.6 million iPhone owners have downloaded and installed the app to date.

[via Tech Crunch]

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