EBay has no intention to compete with retailers on the street or online, but to enable them to succeed, explained the CEO of the company John Donahoe.
Just days after the company posted 35 percent increase in revenue for the fourth quarter of 2011, Donahoe spoke to investor Sonali de Rycker on the DLD Conference stage.
EBay and Paypal, said Donahoe, work to enable retailers, big and small, and allows them to adapt the shopping experience for customers in a mobile world, as the line between physical and online shopping is blurred.
While physical shopping, the act of going into a store, trying out products and buying them, is not dead, more and more mobile devices allow customers to browse in a store and go online.
For half of the purchases made in stores in the United States last year, the customer went online during his or her time in the store, said Donahoe. This shows a shift in shopping, towards a multi-channel retail world.
As technology advances, it will soon allow customers to get rid of their wallets, as their bank information will be stored in a cloud and they will only need to enter a PIN to make a purchase.
This, along with scanning technology like the Red Laser app, open endless possibilities for retail. The direction retail is taking, said Donahoe, is towards a seamless shopping experience, that is simple, fast and free of complications.
“Apple was very innovative with the iPhone, but most of the innovation has been done by third party developers - so consumers are in charge”, he said.
Donahoe added that, in the future, it will be those innovators that can create an easy, compelling and seamless shopping experience who will win.