Popularity of mobile shopping boosts eBay profits

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eBay shares rise after strong financial gains

eBay has revealed strong financial performance figures for 2012, with almost $4 billion in total sales, a rise of 18 per cent from 2011.

Total profits for the company were revealed as $757m (£473m), considerably up on the previous year if the sale of Skype to Microsoft is taken out of consideration. eBay shares rose by 1.2per cent after this announcement was made, closing at $53.53.

Mobile shopping offers online sales boost

The increase in total sales for eBay is largely being attributed to the increased popularity of mobile shopping. eBay chief executive John Donahoe commented: "Mobile continues to rewrite the commerce playbook". With the continued popularity of smartphone devices, the vast majority of the population now has access to either mobile internet or the official eBay app, meaning items can be bought or sold more easily than ever.

Many other online retailers also offer free apps, allowing purchases to be made and paid for on the move. PayPal is the most popular form of online payment, with profits for this branch of eBay up by 24 per cent from 2011.

High street problems continue as online sales soar

Blockbusters has become the latest high street casualty, in the same week it was announced that HMV was in administration, along with technology store Jessops. With online and mobile shopping more popular than ever, the way the general public shops seems to be changing forever.

Tom Glass, creative director at theEword commented: "The internet is now a crucial part of our lives, and this clearly extends to shopping. With mobile and online shopping prices often far lower than what is offered on the high street, retailers must continue to adapt if they are to survive. Just as smartphone technology has been widely adopted by the public, it appears that mobile shopping is set to become just as widespread."

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