Shoppers have spent more than $400m this year on merchandise using Ebay’s application for the Apple iPhone, a striking indication that consumers are becoming more comfortable with mobile shopping.
More than 4.6m people have downloaded the Ebay app, using it to buy not just books and clothes, but also a Lamborghini, a $150,000 boat, and a Bentley.
“The lines between mobile and fixed devices are beginning to blur,” said Ebay chief executive John Donahoe. “I may do my research on my laptop, but actually make my purchase on my mobile device.”
Amazon also has a popular iPhone app and others are racing to improve their mobile storefronts.
The Ebay app, which has been available since the launch of Apple’s App Store website in June, has undergone several iterations since its initial release. Mr Donahoe said the company would release an “enhanced version” by the end of the year.
Some people are using the Ebay app to watch items that they are actively bidding on. “If you’re committed to buying something and you want to win that auction, you sign yourself up for alerts and make yourself aware of when someone bids higher,” said Sucharita Mulpuru, an e-commerce analyst with Forrester Research.
Mr Donahoe said consumers were using the Ebay iPhone app in a variety of ways. “Some people search for an item, bid and buy all on the iPhone,” he said. “Others search on their desktop [computer], and end up completing the transaction on the iPhone.”
Ebay’s early success with its iPhone app has been aided by its previous efforts to keep bidders informed about their active auctions through text alerts. Its app is the most popular in the Lifestyle category of the App Store, while Amazon’s app ranks tenth.
Amazon would not disclose the number of downloads or revenues from its app. But it suggested the app was gaining traction. “We’re pleased with how it’s going,” it said.
Ms Mulpuru said users were likely to use the Amazon app to look for cheaper products while they were shopping in brick and mortar locations. “It’s more about price comparison,” she said. “I imagine it’s also pretty successful.”
“Companies are becoming more mindful of what they put in the mobile shopping experience, and the comfort levels consumers have with mobile is fuelling this,” said Ms Mulpuru. There was growing evidence smartphones were becoming an important part of the retail process.
