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Thursday, July 28, 2011

eBay Increases Forecast After Strong Showing In Second Quarter

eBay’s second quarter revenue increased 25 percent and this made the company raise its full year forecast. Its marketplace division increased its revenue by 19 percent, which is a result of fee changes and new technology it implemented last year. Total number of merchandise volume went up and marked a full year of straight quarterly increases.

CEO John Donahue said that the result outdone the goals of his company’s growth plan that was made six months ago. It would raise the sales to $15 billion in 2013. The company capitalized on blurring the lines between offline and online retail service through its mobile shopping apps and PayPal online payments. Because of this, mobile payment volume has exceeded $3 billion in 2011.

The company’s growth comes as eBay tried to retool its business model to include the demands of mobile users and sellers. EBay’s U. S. marketplace has underperformed even if it accounts for 40 percent of the total merchandise volume.

EBay plans to launch a new marketing campaign at the end of the third quarter. This would include television ads, which would be the first time in four years. The campaign would try to build the brand and attract customers back to the marketplace.

View the original article here

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