Ebay reports that their very popular and free to download iPhone app has generated $400 million in business since launch. This is less than 1% of the $59.7 billion in sales that eBay reported last year, but that should not take away from this significant trend. The iPhone is quickly gaining popularity, but still only accounts for approximately 15% of the smartphone market. iPhone users, however, are very technologically savvy and stand at the forefront of mobile payment usage in the United States. Mobile transactions are much more common in places like South Korea and Japan, but the US has been a bit behind. When most people think of iPhone apps they think of games, news, music, or photography, but rarely do they think of ecommerce. Companies like Starbucks and Amazon have moved their way onto the mobile commerce scene, but there are still many companies that have yet to make their way into the space.
Some of the mobile commerce success for Ebay can be attributed to the more affluent shoppers who have purchased very high end cars like a Lamborghini or a Bentley with it. Since the majority of transactions are not this lavish, it illustrates just how many purchases have occurred via the Ebay app. The more popular and affordable items people are purchasing from the app are clothing, books, and electronics. This shopping behavior is very similar to that of the typical Ebay shopper who uses a traditional computer at their home. To date, there have been over 4 million downloads of the Ebay iPhone app and the number continues to grow as more people become comfortable with the idea of mobile commerce. iPhone users that also run an online storefront should download this free app to see why everyone has been so impressed with it.