It was never expected that online shopping would grow at the pace it has grown. People assumed that without a physical market and without actual visual display of the products, purchase would hardly be possible. Security of transactions made through credit cards was another concern. Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY), however, became better than the expectations of the market. They have grown at an amazing pace. Let us just take a look to see if there is growth still left for these e-commerce giants.
Fantastic eBay Inc (NASDAQ:EBAY)
eBay’s most recent quarter earnings were slightly better than the analyst’s estimates. Revenue surged 18% compared to the same quarter last year, as eBay’s entire business portfolio performed better than the same period last year. The company’s core business generated revenue of $2 billion; as gross merchandise volume grew to $19.1 billion, delivering a growth of 16% year-over-year.
Though the company’s entire portfolio has performed well, its mobile business has grown beyond expectations. Phenomenal mobile usage helped the company to generate $13 billion in mobile commerce volumebettering the expected $10 billion. Moreover, eBay is a market leader in its mobile business with 206 million users while its competitor Amazon has 152 million users. CEO John Donahoe’s statement “that mobile users of eBay are more likely to transact,” makes complete sense as people using eBay or PayPal on mobile will do so in order to make a purchase or payment compared to desktop users, who might just be going through deals while sitting on their computers.
PayPal has seen tremendous growth, with revenue increasing 24% year-on-year to $1.5 billion, as the increased payment volume now stands over $41 billion in transactions. The company is expanding its newly launched in-store payments platform to a number of retailers like Home Depot, Abercrombie & Fitch, and J.C. Penney. Moreover, Discover and PayPal’s partnership which is scheduled to start in 2013’s second quarter should help PayPal offer its offline payment to millions of merchants in the U.S. and international market.
PayPal and NCR Corp’s deal will enable customers to pay their bills at restaurants using a smartphone. The mobile payment option will further integrate in NCR’s Convenience-Go (C-Go) app for gas stations and convenience stores increasing further scope of generating revenue for PayPal. PayPal’s “Bill me Later” allows customers to checkout and pays their bills later through this product. This product appears to be a great addition to the company as, in its third quarter 2012; it generated a payment volume of $775 million.