5. Mobile edge
eBay is in an envious position when it comes to mobile because the company makes the same amount of money regardless if a transaction is conducted on a PC or a smartphone. Companies like Google Inc (NASDAQ:GOOG) and Facebook Inc (NASDAQ:FB) have had difficulty commanding the same advertising rates between desktop and mobile campaigns, raising concerns that mobile is cannibalizing their businesses models. As consumers continue to blur the line between mobile computing and desktop computing, eBay remains in a leading mobile position. Members are currently buying over 10,000 cars a week on eBay mobile and the company expects that total mobile transaction volume between PayPal and eBay marketplace will exceed $40 billion this year.
6. Early investors
eBay has had a successful history of investing early in future business opportunities, which has helped the company benefit. PayPal has become the clear leader in mobile payments as a result of the company’s ability to see the power of mobile early on. Currently, eBay is investing in developing a same-day delivery platform for retailers that leverages excess delivery capacity. If all goes to plan, this service has the potential to not only drive new growth for both its PayPal and marketplaces businesses, but also create an entirely new business segment all together.
A coming sea change
Thanks to advancements in mobile technology, we have reached a massive inflection point in the way consumers pay and shop. According to Donahoe, consumer behavior is about to change more in the next three years than it has over the last 15. While many companies are reacting to this sea change, eBay has taken a proactive approach, which has allowed its businesses to flourish under the mobile paradigm. In the coming years, I fully expect eBay will continue building out its businesses in a way that works for the future. Investors along for this ride are likely to continue being handsomely rewarded for their time.
The article 6 Reasons Why You Should Love eBay originally appeared on Fool.com and is written by Steve Heller.
Fool contributor Steve Heller owns shares of Google and eBay. The Motley Fool recommends Amazon.com, eBay, Facebook, and Google. The Motley Fool owns shares of Amazon.com, eBay, Facebook, and Google.
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