$400 Million via Ebay iPone App

According to eBay CEO John Donahoe, shoppers have already spent about $400 million on the popular commerce site using the company’s free iPhone application. Ok, the shopping part of eBay’s business brought in $1.4 billion in revenue just last quarter, but who would have predicted around half a billion dollar in sales a year would be recorded through the eBay iPhone app when it debuted on the App Store?

The number pales in comparison with eBay’s total sales ($59.7 billion last year), but it’s fairly significant considering the fact that the iPhone has a relatively small market share – about 15% of the smartphone segment – and mobile payment transactions are still new to many. In total, approximately 4.6 million iPhone owners have downloaded and installed the app to date.

Donahoe also said eBay will soon be introducing the next version of the app with improved functionality and features.